Cost accounting systems used by manufacturing companies are based on the: OA. LIFO inventory system. B. Perpetual inventory system. C. Finished goods inventories. D. Weighted average inventories. OE. Periodic inventory system. Reset Selection ↑

Cost accounting systems used by manufacturing companies are based on the: OA. LIFO inventory system. B. Perpetual inventory system. C. Finished goods inventories. D. Weighted average inventories. OE. Periodic inventory system. Reset Selection ↑

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7Q: From beginning to end, place these items in the order of the flow of goods. A. cost of goods sold B....

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Cost accounting systems used by manufacturing companies are based on the:
A. LIFO inventory system.
B. Perpetual inventory system.
C. Finished goods inventories.
D. Weighted average inventories.
E. Periodic inventory system.
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From beginning to end, place these items in the order of the flow of goods. A. cost of goods sold B. raw materials inventory C. finished goods inventory D. work in process inventory
For each cost pool, identify an appropriate cost driver. A. order department B. accounts receivable processing C. catering D. raw material inventory
Accumulating costs means that a. costs must be summed and entered on the income statement. b. each cost must be linked to some cost object. c. costs must be measured and tracked. d. costs must be allocated to units of production. e. costs have expired and must be transferred from the balance sheet to the income statement.
Describe costing inventory using weighted average. Address the different treatment, if any, that must be given for periodic and perpetual inventory updating.
Why do companies adopt the LIFO method of inventory costing? Your discussion should include the effects on the income statement and balance sheet.
Which of the following describes the economic order quantity (EOQ)? a. It is associated with a pull inventory system. b. It is the heart of a JIT purchasing system. c. It minimizes total ordering and carrying costs. d. It minimizes stock-out costs.
Write out the formula for the total costs of carrying and ordering inventory, and then use the formula to derive the EOQ model.
A JIT inventory management system maintains which of the following? a. Goods should be pushed through the system on a fixed schedule based on anticipated demand. b. Goods should be pulled through the system by present demand. c. Total inventory costs are minimized by balancing setup and carrying costs. d. Inventories are needed to avoid stock-out costs.
Sales Returns and Allowances is classified as a contra-cost account on the income statement.