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  • Item Number Conversative or Conventional or Lower Cost and Net Realizable Value Approach Average Cost Approach

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    Earl Bandala
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    This document outlines the effects of various inventory-related transactions and events on the calculation of cost of goods sold and ending inventory under different inventory costing methods. Specifically, it shows whether each transaction would increase, decrease, or have no impact on the cost of goods sold or ending inventory under a conventional or lower cost approach, an average cost approach, and a FIFO approach.

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    1stProblem.xlsx

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    This document outlines the effects of various inventory-related transactions and events on the calculation of cost of goods sold and ending inventory under different inventory costing methods. Specifically, it shows whether each transaction would increase, decrease, or have no impact on the cost of goods sold or ending inventory under a conventional or lower cost approach, an average cost approach, and a FIFO approach.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    8 views2 pages

    Item Number Conversative or Conventional or Lower Cost and Net Realizable Value Approach Average Cost Approach

    Uploaded by

    Earl Bandala
    This document outlines the effects of various inventory-related transactions and events on the calculation of cost of goods sold and ending inventory under different inventory costing methods. Specifically, it shows whether each transaction would increase, decrease, or have no impact on the cost of goods sold or ending inventory under a conventional or lower cost approach, an average cost approach, and a FIFO approach.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Treatment under the following approaches

    Conversative or
    Item number conventional or Average cost
    lower cost and net approach
    realizable value
    approach
    1. Markdowns Decrease in GAS
    2. Markdown cancellations. Increase in GAS
    3. Cost of to transferred in from other departments. Increase in GAS Increase in GAS
    4. Retail value of Items transferred in from other departments. - -
    5. Sales discounts. - -
    6. Purchases discounts (purchases recorded @ gross amounts). Decrease in GAS
    Decrease in Ending
    7. Estimated retail value of goods broken or stolen. Inventory
    8. Cost of beginning inventory. Increase in GAS
    9. Retail value of beginning inventory. Increase in GAS
    10. Cost of purchases. Increase in GAS
    11. It Retail value of purchases. Increase in GAS
    12. Markups. Increase in GAS
    13. Markup cancellations. Decrease in GAS
    14. Employee discounts (sales recorded net). - -
    the following approaches

    FIFO

    Decrease in Purchases
    Not included
    Increase in Purchases
    -
    -

    Not included
    Not included
    Increase in net purchase
    Increase in net purchase
    Increase in purchase
    Not included
    -

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