0
What else can I help you with?
The ending merchandise inventory for a period is the same as beginning inventory of which period?
For the following period.
If the ending inventory is overstated by2000 at the end of the accounting period then?
If the ending inventory is overstated by $2,000, it will lead to an overstatement of net income for that period, as the cost of goods sold will be understated. This misrepresentation can also affect future periods, as the beginning inventory for the next period will be inflated, potentially leading to further inaccuracies in financial reporting. Additionally, it may impact key financial ratios, such as the current ratio and return on equity, creating a misleading picture of the company's financial health.
Beginning inventory plus net purchases minus ending inventory equals?
Consumption of goods for the period, aka cost of sales
Which is lifo or fifo if in a period of rising prices ending inventory would be highest?
fifo
What inventory cost methods results in lowest net income during a period of rising inventory costs?
Last-in, first-out (LIFO)
The ending merchandise inventory for a period is the same as beginning inventory of which period?
For the following period.
Beginning inventory plus net purchases minus ending inventory equals?
Consumption of goods for the period, aka cost of sales
Which is lifo or fifo if in a period of rising prices ending inventory would be highest?
fifo
What inventory cost methods results in lowest net income during a period of rising inventory costs?
Last-in, first-out (LIFO)
What is the inventory valuation method that results in the lowest taxable income in a period of inflation?
LIFO method
How do you calculate the ending direct materials inventory?
Beginning Direct Materials Add: Materials purchased during period Less: Materials Used during period Equals: Ending Direct Materials
In a period of rising prices the inventory method which tends to give the highest reported inventory?
Hi - in periods of rising prices, the FIFO (fist in, first out) will give the highest ending inventory. The other two options (LIFO last in first out) will give the lowest ending inventory and the average method will give between the two. Hope this helps!
Is ending inventory contra account?
Ending inventory is not really a contra account because it is to be subtracted from cost of goods available for sale to compute cost of goods sold on the entity's income statement. Ending inventory is presented on the balance sheet at the end of a fiscal period as an asset. Contra accounts are presented on the balance sheet as reductions of another related account.
How do you find purchases figure?
To find the purchases figure, you typically start with the beginning inventory and add any new purchases made during the period. Then, subtract the ending inventory from this total. The formula can be summarized as: Purchases = Ending Inventory - Beginning Inventory + Cost of Goods Sold. This calculation provides insight into the amount spent on stock during the specified timeframe.
How to calculate Inventory turnover period?
Generally inventory turnover period is calculated as: Sales/Inventory Also by, Cost of Goods Sold/ Average Inventory
What is difference between periodic inventory and perpetual inventory?
Periodic inventory method calculate ending stock at the end of the accounting period, which could be Month to Date or Year to Date, while Perpetual inventory system calculates the ending stock on a continuous basis after each transaction (Purchase or Sell). Within Retail industry, periodic inventory method used for inventory valuation at the stores, whereas distributer like SuperValu (in US) follows perpetual inventory method to track inventory in their distribution centers. As a best practice, some of the retail companies are using perpetual accounting method to track inventory available in warehourses and distribution centers. In an idealistic world, perpetual inventory method can provide the true and real time inventory information, however due to complexities in consolidating all the purchases, sales, shrinkages and other market factors, it is advisable for retail companies to follow periodic accounting method to analyze and review the results before presenting the inventory valuation results to internal and external agencies like Shareholders, Income Tax Authorities, et el.
What does open to buy mean?
Open to buy is a method of planning and controlling retail inventory. Calculate your opening inventory balance (in units or dollars), add the in-coming (already ordered) inventory and subtract your projected sales for the period...then compare that number to your desired ending inventory amount...the difference is how much you are open to buy (inventory that should be ordered). So if you start with 100,000 and have 10,000 on order and expect sales to be 40,000 and you want your ending inventory to be 90,000...You are open to buy 20,000 90- (100 + 10 - 40) = 20
