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What else can I help you with?
What should be equal to the balance of the Work In Process Inventory account at the end of the period?
The total manufacturing costs for the period
Should consumption against consignment items will be considered in inventory turn over ratio because consign inventory is not the part of average inventory?
The short answer is no. If you consume a consignment item, you just bought it. It's not inventory turnover for you, because it's not your inventory - now it's a consumable, an asset, or a personal purchase which should not be on your books at all, except to pay the sales tax owing. Any other treatment of it is deceitful and illegal.
How does drop shipments affect turnover?
Should help increase inventory turnover because the inventory doesn't go into your plant and sit on your shelf. Supplier ships right to customer. Typically you get the customer order, and you maybe used to make the part but now you buy it, so you order from your supplier once you get order from customer and ask supplier to 'drop ship' direct to your customer.
What test should be used to identify obsolete inventory?
One commonly used test to identify obsolete inventory is the ABC analysis, which categorizes inventory items based on their value and importance. Another approach is to analyze inventory turnover rates, with items that have not been sold for an extended period likely to be classified as obsolete. Additionally, conducting a physical inventory count and comparing the results to the inventory records can help identify obsolete items.
Is it good for a company to have a lot of inventory at the end of the year?
A company should always maintain anadequate supply of inventory for production or sales needs. However, in some places, there is an inventory tax based on year-end inventory. In this case, you would want to reduce inventory toward the end of the year with replenishments scheduled to arrive shortly thereafter.
What type of company needs to use inventory tracking software?
The type of company that need to use inventory tracking software are multi million dollar companys that have high values of produce and product to sell. But for the most part and company should have use of invetory tracking software, cause its just good to have.
List items that are important to include on an inventory card?
An inventory card should include the item name, description, and SKU or identification number for easy tracking. Additionally, it should contain the quantity on hand, the unit of measure, and the location of the item within the storage facility. Recording the cost per unit and the total value of the inventory is also important for financial analysis. Lastly, including date of last restock or expiration date helps in managing inventory turnover effectively.
What is meant by inventory compilation?
Inventory compilation is used by a company when reconciling physical inventory with perpetual inventory records and consists of the following procedures: counting the physical inventory, correctly summarizing the quantities, extend prices times quantities, and foot the extensions. Totals should agree with the amounts recorded in general ledger.
What is fleet inventory?
Usually you confirm you have or what condition every mobile or motorized vehicle the company owns from records that show you "should" have them.
What is ordering quantity?
The Economic Order Quantity (EOQ) is the number of units that a company should add to inventory with each order to minimize the total costs of inventory-such as holding costs, and order costs
When a company uses the perpetual inventory method should the inventory account should stay current at all times?
True... Using the Perpeptual Inventory Method would result in each sale and purchase being journaled directly to the inventory account which would keep this account current. Whereas using the Periodic System would result in the Inventory Account showing the correct stock levels at year end only.
What is meant by compilation?
Inventory compilation is used by a company when reconciling physical inventory with perpetual inventory records and consists of the following procedures: counting the physical inventory, correctly summarizing the quantities, extend prices times quantities, and foot the extensions. Totals should agree with the amounts recorded in general ledger.
