Question: Regardless of the cost formula being used FIFO average cost
Regardless of the cost formula being used (FIFO, average cost, specific identification), the sum of cost of sales plus ending inventory will be the same. Explain why.
Answer to relevant QuestionsExplain why a FIFO inventory system gives higher inventory valuation and lower cost of sales than average cost when prices are rising.Explain how the specific identification method of valuing inventory works. Why do most entities not use this method? Under what circumstances is the method useful? Why does this method sometimes make it easy to manipulate ...At the 2017 year-end inventory count, some inventory is counted twice (the count shows more inventory than is really there). What is the impact of double-counting inventory on the 2017 and 2018 financial statements? Explain.Elko Inc. uses a periodic inventory control system. During Elko's inventory count on December 31, 2017, $200,000 of the inventory was counted twice, in error. Elko reported inventory of $1,550,000 on December 31, 2016 and ...The following information is provided for Clova Ltd. (Clova):Required:a. Calculate ending inventory on December 31, 2017 and 2018, and cost of sales and gross margin for the years ended December 31, 2017 and 2018 for Clova, ...
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