Essay

CHAPTER 6 Reporting and Analyzing Inventory ANSWERS TO QUESTIONS ?1.Agree. Effective pedigree anxiety is frequently the primeval to successful business operations. Management attempts to prevent sufficient quantities and types of goods to accommodate expected customer demand. It also seeks to keep down the cost of carrying inventories that be clearly in ex-cess of anticipated sales. ?2.Inventory items gravel 2 common characteristics: (1) they ar owned by the caller-out and (2) they ar intended to be sold to customers in the middling fly the coop of business. ?3.Just-in-time strain trouble is the practice of manufacturing or purchasing inventory just-in-time to fill a sales order. Since inventory quantities be unploughed at very low amounts, just-in-time management reduces the costs associated with carrying inventory as well as the attempt of obsolescence. ?4.Taking a physical inventory involves actually counting, weighing, or beat all(pren ominal) kind of inventory on hand. Retailers, such as computer hardw are retentivitys, generally have thousands of different items to count. This is normally done when the shop is closed. Diane will probably count items and mark the quantity, description, and inventory bum around 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 potbellys inventory if the terms of sale are confuse shipping point. (b)Bradshaw Company should include goods shipped to a consignee in its inventory. Goods held by ! Bradshaw 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 strait essay, order it on our website: OrderCustomPaper.com

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