What classifications of inventory does a manufacturer have?
Answer to relevant QuestionsIn what situations can different items of inventory be aggregated and evaluated on the basis of lower of cost or NRV for the group as a whole? Explain the essential differences in accounting for inventories under the periodic and perpetual inventory systems.In what category (ies) of the SCF may income tax be presented? Interest paid? Interest received? Dividends paid? Dividends received? If judgement is involved, who makes the decision about where to classify these items?Why might the direct method of presenting cash flows from operating activities be preferable to the indirect method? Which presentation approach dominates current practice?Selected accounts from the SFP of MNN Limited at 31 December 20X4 and 20X5 are presented below. Depreciation was $ 40,000 for equipment, $ 60,000 for buildings, and $ 75,000 for machinery. A new machine was purchased in ...
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