Identify and explain the inventory asset and cost flows of a merchandising company.

Q: Identify the costs of merchandise inventory.

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: Discuss the factors affecting a company’s choice of inventory method

A: An inventory valuation allows a company to provide a monetary value for items that make up their…

Q: Define inventory costing system.

A: Inventory cost flow assumptions: These are the methods used by the companies to compute the cost…

Q: 1.a. In what ways are the inventory accounts of a merchandising company different from those of a…

A: We have to provide difference between inventory accounts of merchandising company and manufacturing…

Q: Explain the type of inventory in the manufacturing companies, service companies and merchandise…

A: Classification and uses of inventories in manufacturing companies, service companies and the…

Q: Inventory accounts for a merchandiser include: Select one: a. Raw material inventory b. Work in…

A: Merchandiser is a person who buys the goods and sells it at a higher for profit.

Q: Describe how the inventory accounts of a manufacturing company differ from the inventoryaccount of a…

A: The manufacturing company maintains three inventory accounts; these are raw material inventory…

Q: A significant amount of accounting information is dedicated to planning and controlling the use of…

A: Cost of production refers to the total cost that is attributable to the production activities like…

Q: Task description: Explain considerations for businesses while developing and selecting their…

A: First-in-first out(FIFO): As the name suggests that the oldest inventory or purchases will be sold…

Q: Briefly explain the following terms

A: 1. Matching principle : The income recognition theory in accrual reporting specifies that earnings…

Q: Explain "the inventory process sits between the revenue and the purchasing processes. the subject…

A: Inventory management is defined as a process of ordering, managing, storing, and implementing the…

Q: Explain which physical units of goods should be included in inventory.

A: Inventory:   It refers to an accounting term used to describe the goods in various stages in the…

Q: Distinguish among the types of inventory accounts for merchandising and manufacturing companies.

A: Merchandising firm means a firm which only deals in sale and purchase of a commodity but do not…

Q: hich of the following accounts is unique to a merchandising entity that uses the periodic inventory…

A: The periodic inventory system does not record each transaction at the time they occurred. It…

Q: The selected inventory costing method impacts: Multiple Choice Gross profit and net income. Sales.…

A: The inventory can be valued using various methods as LIFO, FIFO, average method and specific…

Q: QUESTION 1 A significant amount of accounting information is dedicated to planning and contraling…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: The equivalent of finished goods inventory for a merchandising firm is referred to as a) inventory.…

A: Completed goods / Finished goods are the only type of inventory which is purchased or sold for…

Q: Planning and regulating inventory use and their associated expenses is the focus of a substantial…

A: When a wholesaler or trader buys items from manufacturers or wholesalers and resells them, this is…

Q: A significant amount of accounting information is dedicated to planning and controlling the use of…

A: Solution Purchase cost Ordering, holding, and shortage costs make up the three main categories of…

Q: The equivalent of finished goods inventory for a merchandising firm is referred to as • a)…

A: Merchandising firm means a firm which only deals in sale and purchase of a commodity but do not…

Q: During the costing process, to arrive at the gross profit of a trading business, which one of the…

A: Gross profit = Net sales - Cost of goods sold  where, Net sales = Gross sales - sales return and…

Q: Describe a situation where a merchant would use the specific identification method for recording…

A: A merchant would use specific identification method when the individual items in inventory can be…

Q: Inventory for a manufacturer consists of raw materials, work in process, and finished goods.…

A: Inventory: Inventory refers to the raw materials, work-in process, and the finished goods products…

Q: Briefly explain the similarity and difference between the merchandise inventory of a retailer and…

A: Inventory or stock are goods which can be in the form of raw materials, after processing the raw…

Q: Compute the correct amount of inventory.

A: Inventory is the stock which the company has in order to sell them in the normal course of the…

Q: How do the product costs move through the various accounts and affect the balance sheet and the…

A: Inventory:   Inventory refers to the raw materials, work-in process, and the finished goods…

Q: The cost of goods available for sale is allocated between * beginning inventory and ending…

A: Gross profit = Sales - Cost of goods sold  Sales = Cost of goods sold  + Gross profit  Cost of goods…

Q: Which of the following would appear on the balance sheet of a merchandiser but not on the balance…

A: The goods that a wholesaler, retailer or distributor obtains from manufacturers that are intended…

Q: Manufacturing firms use which of the following three inventory accounts?   A. Materials,…

A: SOLUTION- MANUFACTURING FIRM  IS ANY FIRM THAT USES RAW MATERIAL , PARTS AND COMPONENT TO ASSEMBLE…

Q: A manufacturing company calculates cost of goods sold as follows: Beginning FG inventory + cost of…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following types of inventory does a manufacturer not include in its Balance Sheet? A.…

A: The balance sheet is the financial statement which represents financial position of the business.

Q: In comparing the accounts of a merchandising company with those of a service company, what…

A: Perpetual inventory system:- It is the system in which sales and purchase of inventory is a…

Q: In what ways are the inventory accounts of a retailing companydifferent from those of a…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: Define Operating cycle of Merchandising Company,

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Describe the operating cycle of a merchandising company.

A: An operating cycle can be defined as the process of obtaining merchandise inventory, selling the…

Q: How do you find an inventory report for manufacturers?

A: Answer :- The inventory of manufacturer is reported in "Current assets" part of the balance sheet of…

Q: Indicate whether the following financial statement items apply to a manufacturer, a merchandiser, or…

A: The manufacturing business involves the production of goods. The merchandise business includes the…