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?

User Account

All Pages