The specific identification inventory method should be used when the inventory consists of identical, low-cost units that are purchased and sold frequently. Please explain with full explanation. a. True b. False

The specific identification inventory method should be used when the inventory consists of identical, low-cost units that are purchased and sold frequently. Please explain with full explanation. a. True b. False

Name: The specific identification inventory method should be used when the i
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: The specific identification inventory method should be used when the inventory consists of identical, low-cost units that are purchased and sold frequently. Please explain with full explanation. a. True b. False

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 2CYBK

See similar textbooks

Similar questions

When inventory items are highly specialized, the best inventory costing method is ________. A. specific identification B. first-in, first-out C. last-in, first-out D. weighted average
The tracking of inventory shrinkage due to theft, damage, or errors is completed with the help of a (n) inventory. OA. physical count B. authorization C. sale OD. delivery BI of
Periodic inventory system is used for high in value items. Select one: True False
s) Which of the following is NOT a benefit of the Specific Identification method of tracking inventory? The value of each inventory item is more accurate than other methods. Many inventory items can be carefully tracked at the same time. O Costs can be assigned directly to each inventory item. O Each inventory item can be separately tracked.
Inventory valuation is used to calculate the cost of goods sold and cost of ending inventory. The most widely used methods are LIFO, FIFO and average cost method. You are required to find out the inventory system applied, the method of inventory valuation used, and what does inventory consists of with their respective amount?
When valuing ending inventory under a perpetual inventory system, the O A. valuation using the FIFO assumption is the same as under the periodic inventory system. O B. moving average requires that a new average be computed after every sale. O C. valuation using the average-cost assumption is the same as the valuation using the average-cost assumption under the periodic inventory system. O D. last units purchased during the period using the FIFO assumption are allocated to the cost of goods sold when units are sold.
Which type of inventory might a service provider report? Select one: O O O O a. raw materials b. work-in-process c. finished goods d. two or more of a, b, and c. e. a service provider never reports inventory Check
When identical units of an item are purchased at different costs a. an inventory cost flow method must be used under a periodic inventory system only. b. an inventory cost flow method is not used under either a perpetual or a periodic inventory system. can inventory cost flow method must be used under both a perpetual and a periodic inventory system. d. an inventory cost flow method must be used under a perpetual inventory system only.
The hypothetical flow is one of the methods used to determine the cost of inventory and the cost of goods sold, and assuming that the company uses the perpetual inventory system, discuss this method in detail, supporting your answer with a practical example to determine the cost of goods sold and the cost of inventory and the reasons for the difference in results for each method (FIFO, LIFO?
With a perpetual inventory system inventory shortages through lost or stolen goods can be readily determined. (T/F)
Required: 1. Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: a. FIFO b. LIFO c. Specific identification d. Weighted average. 2. Prepare the journal entries required to record purchases and sales using the FIFO inventory cost flow assumption. Descriptions are not necessary.…
Which of the following methods of inventory control will be used in case of a business whose inventory consists of a relatively small number of unique, high-cost items? Select one: a. FIFO b. Specific identification c. Average d. LIFO