How do you value the obsolete inventory

Assignment Help Accounting Basics
Reference no: EM13127135

There are several questions that each company needs to ask itself and answer sufficiently when it comes to inventories.

• The first is when does the inventory become obsolete and how do you value the obsolete inventory? The second is how to value the inventory that is not obsolete?

• There are several methods, LIFO, FIFO, Weighted Average, Market, and Historical Cost. If you are in the retail/wholesale business, would you use the same method that you would use if you were in the manufacturing business?

• Why or why not and which method would you use?

Reference no: EM13127135

Questions Cloud

Capitalization of interest : On January 1, Year 3, Starlight Construction Co. began a construction project qualifying for capitalization of interest. The total amount spent on this project during Year 3 was $250,000,
Find probability to work overtime given that it rains : Mike hears the weather forecast, and there ia a 50 percents chance of rain.Find the probability that he will have to work overtime given taht it rains.
Knowledge of high performance work systems : 1) Why don't all companies treat their employees like Whole Foods does? Do you think they will in the future?  2) Mackey is one of the firm's founders. But is the company at a disadvantage once he retires, given Whole Foods' salary cap?
Stereotyping people : What is difference between comparing two groups of people and stereotyping people.
How do you value the obsolete inventory : There are several methods, LIFO, FIFO, Weighted Average, Market, and Historical Cost. If you are in the retail/wholesale business, would you use the same method that you would use if you were in the manufacturing business?
Management dissertation proposal : Explain how your selection of the topic or problem is influenced by your epistemological perspectives. This assignment will support the draft of Section 1 of your Proposal. Remember to write concisely.
Cause-and-effect essay on a political figure : write a 500-word cause-and-effect essay A change in the way you understood your country or your citizenship (a war, a policy, a political scandal, a political figure
What types of internal controls are needed : Discuss the management control issues related to cash. You can focus on what types of internal controls are needed in order to make sure that cash and all assets are protected and are used for the intended purpose.
Probability that none of questions in second set are same : What is the probability that none of the questions in the second set are the same as any of those in the first set? What must the computer do for there to be no questions in common?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Negotiated transfer price between divisions

Assuming the Box Division has enough excess capacity to supply all of the Rolling Division's needs, which of the following is the range at which a negotiated transfer price between the two divisions should occur?

  Journalizing the adjusting entry

The records of Nevada Co. indicated that $420,000 of merchandise should be on hand on December 31, 2010. The physical inventory indicates that $370,000 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage ..

  Comparing after-tax income

Sonja is a United States citizen who has worked in Spain for the past 10 months. She received $5,000 a month as compensation. Her employer has offered to extend Sonja's contract to work in Spain for another 5 months at the same rate of pay.

  Identify cost-variable-fixed-mixed

Describe a variable, fixed, mixed and step cost in an organization. Would this organization be more likely to benefit from using a manufacturing cost hierarchy or a customer cost hierarchy for determining cost drivers?

  Determining job and process costing

Distinguish between job costing and process costing. Describe the difficulties associated with each type. What can companies do in order to price products competitively and avoid some of these difficulties?

  What is the amount of leslie gross estate for federal

Leslie died on October 31, 2011. Prior to 2009, Leslie had never made any gifts, but in 2010 she made some transfers. Specifically, on January 10, 2010, Leslie gave her vacation beach house to her five children as tenants in common.

  Requirements for capitalizing leases

Indicate whether the lease would be classified as operating or capital under FASB Statement No. 13. Assume each scenario is independent and that Waldrop has not met any of the other requirements for capitalizing leases.

  Identify at least two different accounting careers

Identify at least two different accounting careers that you would like to pursue. What excites you about these careers?

  Speculating with currency futures

Speculating with Currency Futures: Suppose that a March futures contract on Mexican Peso was available in January for $.09 per unit. Also suppose that forward contracts were available for same settlement date at a price of $0.092 per peso.

  Determine the amount deductible in arriving

Capital Gains and Losses. Each of the following independent cases involves capital gains and losses occurring during the calendar year for an unmarried individual taxpayer.

  Record allowance for doubtful accounts

The ledger of Elburn Company at the end of the current year shows Accounts Receivable $110,000, Sales $840,000, and Sales Returns and Allowances $28,000.

  Compute the break-even point

In August, Gold Company sold 770 units of their only product. For the month, fixed costs were $10,400, variable costs were 57% of sales, and the average sales price was $62.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd