You are watching: Taking a physical count of inventory quizlet
Which statement(s) below is(are) correct regarding the function of taking a physical inventory count?
-The physical count is supplied to determine if there has actually been any kind of theft, loss, damages or errors in inventory.-The physical counting is used to change the inventory account balance to the really inventory available.
Determine i m sorry of the complying with statements room correct regarding the difference in between physical flow and also the price flow the inventory.
-Physical flow is concentrated on the actual activity of goods.-A company may embrace any cost flow assumption when accounting for perishable items.-Cost circulation is one assumption around which goods/items are sold.-Perishable items must have actually an actual physical flow of FIFO.
Consigned items should be included in the consignor"s inventory.They space owned by the consignor and included in the consignor"s inventory, yet they are situated in the keep of the consignee.
-If damaged items can be offered at a decreased price, they are contained in inventory.-Damaged products are not included in inventory if they cannot be sold.-A ns in worth is report in the duration when items are damaged or become obsolete.-Damaged items are included in inventory in ~ their net realizable value.
The _____ principle claims that inventory costs are expensed as cost of products sold when inventory is sold.
Why would certainly the physical count of perform be various than what is shown in perpetual list records?
One the same unit is purchase on every of the following three dates and at the particular costs: June 1 in ~ $10 June 2 at $15 July 4 in ~ $20 The agency sells two units throughout the period. Conclude i m sorry inventory items space sold very first and which unit stays in ending inventory if the agency is using the FIFO expense flow assumption.
Recount the methods used to assign prices to inventory and cost of products sold under both a perpetual and a routine system.
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The FIFO cost flow assumption assumes the the price of items purchased blank 1Blank 1 more quickly , exactly Unavailable (earliest/latest) space the costs that will certainly be transferred very first to price of products sold top top the empty 2Blank 2 revenue statement , correct Unavailable (balance sheet/income statement).