Name the four inventory cost flow assumptions or valuation methods that are commonly used in the United States. Give a brief phrase describing each.
Answer to relevant Questions“Gamma Company has six units of inventory, two purchased for $4 each and four purchased for $5 each. Thus, the weighted-average cost of the inventory is ($4 + $5), 2 = $4.50 per unit.” Do you agree? Explain. LIFO can produce absurd inventory valuations. Why? The Zen Bootist manufactures sheepskin slippers, mittens, gloves, jackets, and leather sandals to sell at craft fairs and similar events. The majority of the company’s transactions occur over the winter gift-giving season. ...On July 5, Horwath Company purchased on account a shipment of sheet steel from Northwest Steel, Co. The invoice price was $195,000, F.O.B. shipping point. Shipping cost from the steel mill to Horwath’s plant was $10,000, ...Burlingame Gems, Inc., a retail jewelry store, had gross profits of $1,320,000 on sales of $2,500,000 in 20X3. Average inventory was $1,000,000. 1. Compute inventory turnover. 2. Anne Scott, owner of Burlingame Gems, is ...
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