Essay

CHAPTER 6 Reporting and Analyzing Inventory ANSWERS TO QUESTIONS ?1.Agree. Effective pedigree worry is frequently the primeval to successful business operations. Management attempts to decl are sufficient quantities and types of goods to accommodate expected customer demand. It also seeks to block the cost of carrying inventories that be clearly in ex-cess of anticipated sales. ?2.Inventory items eat 2 common characteristics: (1) they ar owned by the familiarity and (2) they ar intended to be sold to customers in the public fly the coop of business. ?3.Just-in-time instrument counsel is the practice of manufacturing or purchasing inventory just-in-time to fill a sales order. Since inventory quantities are unploughed at very low amounts, just-in-time management reduces the costs associated with carrying inventory as well as the fortune of obsolescence. ?4.Taking a physical inventory involves actually counting, weighing, or measuring all(pre nominal) kind of inventory on hand. Retailers, such as ironware retentivitys, generally have thousands of different items to count. This is normally done when the instal is closed. Diane will probably count items and mark the quantity, description, and inventory yield on prenumbered inventory tags. ?5.

(a)(1)The goods will be include in Bradshaw Companys inventory if the terms of sale are trick destination. (2)They will be include in Ecklund smokes inventory if the terms of sale are watch guard shipping point. (b)Bradshaw Company should include goods shipped to a consignee in its inventory. Goods held by B! radshaw Company on consignment should not be included in inventory. ?6.Inventoriable costs are $3,015 (invoice cost $3,000 + freight charges $75 ( purchase discounts $60). The amount paid to negotiate the purchase is a buying cost that normally is not included in the cost of inventory because of the difficulty of allocating these costs. Buying costs are expensed in the year incurred....If you want to get a ponderous essay, order it on our website: BestEssayCheap.com

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