Untitled Quiz

Inventory Accounting and Management

• Bramble Corp's ending inventory balance on December 31, 2022, is $518,400 after adjusting for items not yet received and consigned goods.
• Various inventory costing methods exist, with costs being the primary focus in accounting practices.
• Vaughn's ending inventory on a LIFO basis is calculated at $19,356 based on periodic inventory data.
• Under FIFO, Windsor's ending inventory shows a value of $488 after counting physical merchandise on hand.
• Marigold's cost of goods sold totals $782 using the specific identification method on its inventory.

Inventory Costing Methods

• LIFO (Last In, First Out) reflects more realistic cost of goods sold in rising price environments, which may result in higher expenses and lower profits.
• Ayayai Corp reports an after-tax income of $1,666 using LIFO, factoring in its inventory transactions and operating expenses.
• Blue Spruce Corp achieves an after-tax income of $3,254.30 using FIFO, calculated by accounting for inventory and sales activities.

Cost of Goods Sold Calculation

• Concord Corporation’s cost of goods sold for March is determined to be $50,160 considering purchases and ending inventory.
• Splish Brothers Inc. values its inventory at $3,240 at the end of May, using an average cost method on its sales.

Profitability Assessment

• Nash's Trading Post LLC calculates a gross profit of $784 for January, derived from sales revenue and cost of goods sold under FIFO.

Key Terminology

• FOB (Free On Board) destination indicates that ownership transfers at the destination, affecting inventory accounting.
• Specific identification method allows tracking of each item sold, providing precise cost assessment.
• Periodic inventory systems review inventory counts at set intervals, impacting financial reporting and decision-making.