Which cost flow assumption generally results in the highest reported amount of net income when inventory costs are rising? Explain.

Exercises/Problems- On July 1, 20A, Jufel Tamala and Louie Estrebilla have agreed to form a partnership business engaged in buying and selling of "tuna" fish within the vicinity of General Santos City. Their contributions among others included the following: 12-1 Cash Frozen Tuna Delivery Van Required: Tamala P250,000 180,000 Estrebilla P380,000 950,000 As agreed, Tamala's "frozen tuna" was revalued at P160,000 while Estrebilla's mortgage loan balance of P250,000 for his delivery van was treated as his "personal" obligation from Mitsubishi Gensan branch. 1. Prepare two single journal entries recording their respective contributions. 2. Prepare a Statement of Financial Position as of the date their partnership was formed.

Explain how cost information differs for profit measurement/inventory valuation requirements compared with decision-making requirements.

the lower cost or market is a method of inventory valuation true or false?

The application of the lower of cost or market rule to inventory valuation is an example of a. the revenue realization principle b. the going concern assumption c. special industry practices d. conservatism

During periods of rising costs, which inventory costing method produces the highest gross profit?

Which method would produce the same unit cost for Inventory and Cost of Good Sold in periods of rising prices? Select one: a. Weighted Average b. FIFO c. LIFO

What is the purpose of disclosing the difference between the reported LIFO inventory amounts and replacement cost, assuming that replacement cost is equivalent to a FIFO basis?

What effect would an underestimated degree of completion of ending inventory have on a.) production cost per unit, b.) equivalent units, and c.) costs transferred out

Define Inventory Turnover?  Explain what the results mean and provide an example.