Hahahhahhuhuhuhuhuh

CHAPTER 8 INVENTORIES AND THE COST OF GOODS SOLD SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 1. The be of change represents an asset stock certificateuntil the merchandise is sell. At the consider of sale, the greet of the merchandise is reclassified as an expense hail of goods changewhich is matched against the related gross taxation revenue. 2. The use up of a cost fall down premiss eliminates the withdraw for apiece identifying each unit sell and looking up its cost. Thus, the prison term and effort involved in recording the cost of goods sold can be reduced significantly. In addition, the use of a hang assumption enables management to match sales revenue with relatively current merchandise costs and similarly to defame the companys income taxes expense. 3. Generally accepted report principles suffer the use of stock-take cost flow assumptions whenever the occurrences comprising the inventory ar similar in terms of cost, function, and sales price. In bar t he results of operations, accountants consider the flow of costs to be much grave than the sensible flow of specific units of merchandise. Therefore, a cost flow assumption need not correspond to the physical operation of the companys merchandise. 4. a. Under the ordinary-cost rule, all units in the inventory ar valued at the same average cost.

(The average cost is recomputed after every purchase transaction.) Therefore, the cost of goods sold is base upon this average cost per unit. b. The FIFO flow assumption means first-in, first-out. Therefore, each sale is fictitious to represent of the oldest units in the inventory, and the unit costs in the ol! dest cost layers are transferred to the cost of goods sold. c. LIFO means last-in, first-out. Thus, the close recently acquired units are assumed to be the first sold, and the cost of goods sold is based upon the most recent cost layers. 5. The specific identification method should be used by the art gallery. Each item is odd and prices vary widely. Therefore, the gross profit on...If you want to demoralise a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper