Identify the circumstances when it is appropriate for companies to use the specific identification cost formula. Explain why accounting standard setters may have taken this position.
Answer to relevant QuestionsExplain how the statement of financial position and statement of income would compare if a company used FIFO instead of weighted-average when the prices of inventory were rising. How would this change if the prices of ...Discuss when a company might want or need to estimate the cost of goods sold or ending inventory. Describe a periodic inventory system. Identify a type of company that might use it. The following information was taken from the accounting records of three competitors for the 2016 fiscal year. Required: a. Explain how to calculate inventory turnover and the number of day’s sales in inventory. b. What do ...You are a consultant who helps new entrepreneurs set up their accounting systems. You are frequently asked the following questions about inventory: “What are internal controls?” “Why do I need to implement internal ...
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