Questions from College Accounting

Q: Under what circumstances is the specific identification method for determining cost of

Under what circumstances is the specific identification method for determining cost of inventory items logical?

Q: Why is a perpetual inventory easier to maintain today than it would

Why is a perpetual inventory easier to maintain today than it would have been 50 years ago?

Q: Does the maintenance of a perpetual inventory eliminate the need for taking

Does the maintenance of a perpetual inventory eliminate the need for taking physical inventory? Explain.

Q: What impact does the ending inventory have on net income for the

What impact does the ending inventory have on net income for the period covered by the financial statements?

Q: What accounting principle or constraint underlies the lower of cost or net

What accounting principle or constraint underlies the lower of cost or net realizable value rule for inventory valuation.

Q: 1. Assume that you are an accountant for a manufacturing firm

1. Assume that you are an accountant for a manufacturing firm. At the end of one year, there is a large overapplied overhead amount. How would you explain to management why this balance might exist? 2...

Q: Suggest two situations where it may be necessary or desirable to estimate

Suggest two situations where it may be necessary or desirable to estimate the inventory without a physical count.

Q: Explain the retail method of inventory estimation.

Explain the retail method of inventory estimation.

Q: A company uses the LIFO inventory method to determine cost. One

A company uses the LIFO inventory method to determine cost. One of the managers complains that this is improper. He states: “We always sell our oldest products first. So we should be using first-in, f...

Q: In a period of rising prices, is the LIFO method or

In a period of rising prices, is the LIFO method or the FIFO method likely to yield the larger inventory cost?