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Which method generally results in the most realistic ending inventory figure?
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An overstatement of ending inventory in one period results in?
An overstatement of ending inventory in one period results in
If ending merchandise inventory is overstated?
An overstatment of year-end inventory results in an increase in the gross margin (sales - cost of sales). overstating ending inventroy understates cost of sales
The inventory turnover is calculated by dividing cost of goods sold by?
ending inventory
What is the difference between ending inventory using LIFO and ending inventory using FIFO referred to as?
LIFO Reserve
When calculating prime cost do you use beginning inventory or ending inventory of direct materials?
Total material consumed amount is used for prime cost not opening inventory or ending inventory only.
An overstatement of ending inventory in one period results in?
An overstatement of ending inventory in one period results in
If ending merchandise inventory is overstated?
An overstatment of year-end inventory results in an increase in the gross margin (sales - cost of sales). overstating ending inventroy understates cost of sales
The inventory turnover is calculated by dividing cost of goods sold by?
ending inventory
What is the difference between ending inventory using LIFO and ending inventory using FIFO referred to as?
LIFO Reserve
When calculating prime cost do you use beginning inventory or ending inventory of direct materials?
Total material consumed amount is used for prime cost not opening inventory or ending inventory only.
Does GAAP require a physical inventory Why?
GAAP stands for generally accepted accounting principles, and a physical inventory is needed when using GAAP. One reason it is necessary is, if you don't account for your shrinkage by doing a physical count, your total ending inventory costs will be inflated.
A company's COGS was 4000 Determine net purchases and ending inventory given goods available for sale were 11000 and beginning inventory was 5000?
goods available for sales = beginning inventory + net purchases. So net purchases = 6000 Goods available for sale - ending inventory = COGS So ending inventory = 7000
What is the inventory turnover ratio?
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory and Average Inventory = ( Beginning Inventory + Ending Inventory ) / 2
The ending merchandise inventory for a period is the same as beginning inventory of which period?
For the following period.
The inventory turnover ratio is calculated by dividing cost of goods sold by?
ending inventory
Is Ending Inventory a debit or credit?
credit
How do you calculate inventory turnover?
This is a very simple calculation. Days to Sell Inventory(or Days in Inventory) = Average Inventory / Annual Cost of Goods Sold /365 Average Inventory = (Beginning Inventory + Ending Inventory) / 2 To calculate this ratio for a quarter instead of a year use the following variation: Days to Sell Inventory (or Days in Inventory) = Average Inventory / "Quarterly" Cost of Goods Sold /"90" Average Inventory = (Beginning Inventory + Ending Inventory) / 2
