Solved by verified expert :Week 6
Inventory Classification and Systems
(graded)
Merchandise Inventory
is assets held for sale in the ordinary course of business of wholesale and
retail companies. Manufacturing inventories are raw materials or WIP that will
be used or consumed in the production of finished goods to be sold. Review the Annual
Report that you chose for the Week 3 Discussion topic #1 and based on what
you’ve read in the text and in the Becker materials, explain how inventory is
presented on the balance sheet and what further information you found in the
footnote disclosures about the inventory method and “Impairment of
Inventory”, if any. Q2
nventoriable Costs/Cost-Flow
Assumptions (graded)
We read about the
Perpetual and the Periodic Inventory System. Regardless of which system is
used, under both, we need to assign dollar amounts to the Ending Inventory and
Cost of Goods Sold so that we can trace how costs flow through the system.
Start by identifying what is included in inventory and then discuss how each
item might be treated differently in the Perpetual vs. the Periodic Inventory
System.
