In a period of increasing prices which inventory flow assumption will result in the lowest amount of income tax expense?
In a period of increasing prices which inventory flow assumption will result in the lowest...
In a period of rising prices, which inventory valuation method (LIFO or FIFO) tends to result in the following? a. Highest cost of goods sold b. Lowest inventory valuation c. Highest income taxes
In a period of rising prices, which cost flow assumption would produce the highest net income? Why?
in a period of rising prices, which of the following inventory methods results in the lowest net income? 1. Specific identification method 2. FIFO 3. LIFO 4. Weighted average cost Explain the answer in detail.
1a Which inventory cost flow assumption generally results in the lowest reported amount for inventory when inventory costs are rising? Specific identification. First-in, first-out (FIFO). Last-in, first-out (LIFO). Average cost. 1 points 1b At the beginning of the year, Johnson Supply has inventory of $5,200. During the year, the company purchases an additional $20,000 of inventory. An inventory count at the end of the year reveals remaining inventory of $3,000. What amount will Bennett report for cost of goods...
If prices are rising, which inventory cost flow method will produce the lowest amount of cost of goods sold? FIFO Weighted average LIFO LIFO, FIFO, and the weighted-average inventory cost flow methods will all produce equal amounts of cost of goods sold. 1 points QUESTION 7 West Corporation's Year 1 ending inventory was overstated by $20,000; however, ending inventory for Year 2 was correct. Which of the following statements is correct? Cost of goods sold for Year 1 is...
Effect of inventory cost flow assumption on financial statements Required For each of the following situations, indicate whether FIFO, LIFO, or weighted average applies: a. In a period of falling prices, net income would be highest. b. In a period of falling prices, the unit cost of goods would be the same for ending inventory and cost of goods sold. c. In a period of rising prices, net income would be highest. d. In a period of rising prices, cost...
When inventory prices are increasing, which inventory valuation method would give you the lowest cost of goods sold? B. FIFO LIFO Weighted Average Specific Identification D. The net method of recording sales violates the: A. Matching Principle Cost Principle Revenue Principle De here] D. None of the Above The formula for calculating the COGS when using the periodic inventory system is COGS=COST-SALVAGE VALUE/LIFE COGS=SALES LESS EXPENSES COGS=BI+NP-EI COGSEBEGING INVENTORY-ENDING INVENTORY-GAFS D.
5. In a period of rising prices, which inventory valuation method would generally yield both the lowest ending inventory value and the lowest net income figure? a. First in, first out (FIFO) b. Last in, first out (LIFo) c. Weighted average d. Standard cost
5 & 6 Question 11 (of 20) One inventory cost flow assumption will result in different cost of goods sold from another inventory cost flow assumption O price levels do not change during the year O inventory quantities change from the beginning to end of the year O the cost of inventory items changes during the year O a new product is added to inventory during the year
In a period of steadily rising prices (meaning the cost to purchase inventory is increasing over time), what would be the implications of choosing FIFO vs. LIFO? Which method would show a higher net income, and which would show a lower net income? Which method does a better job of matching expenses and revenues? Which method reflects the most recent costs of inventory on the balance sheet? What implications might this have that would be relevant for users of the...