which-inventory-costing-method-is-almost-always-done-on-a-perpetual-basis-a-specific-identification-

Question

Which inventory costing method is almost always done on a perpetual basis?
A. specific identification
B. first-in, first-out
C. last-in, first-out
D. weighted average

Oluwadamilola Ameobi · Accepted Answer

which eventually costing method is almost always done on a perpetual busies. So my answer is specific identification. Mhm, mhm. And this is an eventually costing method. Mhm. Okay. Diet stone. Yeah. Only perpetual or regular basis.

Puneet Prajapati · Answer

So let&#x27;s start with our current solution. Okay? So But before moving to the main solution, we will understand the matter. Specific identification. Laughter. Okay, it is the net there. Which accounts for transacting as Menez maintaining highly specialized in wintry Do we have right? The everything. The technical definition off this method, they will understand the technical definition to one example. Okay, a more simpler example. However you contrite this definition for your future reference. Okay, let&#x27;s suppose there is a company, a musical, okay? And what it does a busy completing boards. Very advised laser machine Lee from for your country. Okay, it is the practice off a busy company. Boom. Who imports such machinery on here? Do Here. This is so we can begin in this time from the Give an example. ABC Company is up to read off. Very advanced lease in machinery. Okay, which you we can save which which have doctors in feeding, including the patients with laser technology. Okay, so a busy campaign boats are too much in the only year to it Mrs from a foreign country. Okay. Know what happens again? Such such type off specialized machinery is imported from a different country. What happens the company seeks for or different type of my third for transacting in such types of in 20 as well as maintaining off such types of unmanned like lettuce. Oppose you Have you have purchased Are imported the machinery from a foreign country. Okay, No, What happens? There are certain methods which account for in country caused on a general term business like it. Like it ignores some special characteristics of in Monday, then been maintaining the if you been mandating the inventory in the warehouses, so it ignores the most specific characteristics off the in. Wendy, when the company when the company&#x27;s mint dating the in when tree that has been imported. Okay, so avoid these matters. So do we can say toe factor. Who did I better of any effects? Out of a different matter? Okay. Word the word such types of complete. Do they employ this type of expensively? Got identification matter on what it does. It is the matter which accounts for transacting as well as maintaining highly specialized in 20 like it identifies. The four type of laser machine will be will be held in the very house. How should we account This okay? Bore type of special characteristics that doesn&#x27;t have okay. And based on that developed, define that quarter Howard charge he should apply toe patients on the to recover the cost of the machine. So it will depend on case to case basis, like whatever machine you have important for type of inventory. OK, so we have the right ever correct choice. Okay. Based on the especially had. Okay, so the correct choice is hey, that this specific identification method which enables entity to identified the special types Open Bank three. Okay, that&#x27;s all forever solution. You can write down cheap number one who as well s three. He is not required for us each other. This okay, that&#x27;s all part of a solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand, are in solution. But before that, he will understand. What does that benzoate in friends of? It isn&#x27;t concept? No. Okay. Interesting. Mattered which in a bus and in Judy who prevent who prevent overstatement. Next, a six. Thank you. Naked income by reflecting blew it off post market value, often reentry in the financial stickers. So we haven&#x27;t done a very technical definition off off a concept that Pistone desk conservatism However we will understand through. So what? Very simple and clear example. Okay, let&#x27;s suppose there is a company UBC company. Okay, it is beating in furniture. Okay? It is doing it. So I need you know what happens. There isn&#x27;t a Okay, So, Mr A Sell Roma tedium. Mr. Recent Settlement agreed to ABC and company on against that. We also we know that what it is, it does Knicks human just don&#x27;t put doing the stack, but no. What happens? There is some portion of raw material which is not possessed during the current year. Okay, so when the standard, let&#x27;s suppose Mr he has sold thousands of blocks. Well, Mr a busy and company, now out of 1000 500 has bean possessed 300 Sammy processed. It was just means neither possessed nor raw material. Okay? And for one day, like Robert idiot, just as in the form as Mr s. And Okay, so 200 blocks has not been processed yet, But 300 work logs has has bean sandy processed and 500 processed for nature, perhaps are not. So do the customer during the current here. So these 1000 word logs will be shown us. And when during the balance sheet. Okay, in men. Very well. And she No word that conservative and severe disease concept sees that&#x27;s such inventory will be shown as will be sure in the balance sheet as Lord off most what Lord off market value. Okay, let&#x27;s suppose that cost off 1000 1000 would love this $100,000 whereas the market price off such good loves. Okay, he&#x27;s wondering $2000. So the cost the cost of such good laws will be will be show less in Mandarin cost and value. Okay, that is border conservation, concept says, but but by it stays like this living understand definition, we have just done so if the neighbors an entity to prevent the overstatement off like a sex and let go. So this is the prime focus off the conservative concert attacked. It prevents. Okay, it&#x27;s romenzi. One statement off like a sexy not didn&#x27;t like van people. Let&#x27;s is it was when we show the market value depending, what happens? Our necklace expediently increase and net income below because the inventor is also considered in income Statement in deprivation of income stream. So there it will increase the profits substantially. Okay, I&#x27;m going to see you dream. $100,000 at 1 30,000 $20,000 But Alexis supposed there are billions of a months billions of Okay, No, What happens? It will release it. Really? You know, have any affected profits as well as loss among Indian come treatment and next, a sex in the military. So that is right. The conservative concept is followed. Okay, I would say is that then when we will be sure, be lord off cost or market value in the balance. Okay, So the correct choice. So what is the correct choice that enjoys is being okay down? Somewhat simple, however biases. What is the concert behind such reporting? Respect and What is the actual meaning of concept and how do we do? This is also important to I know about, okay, however, correct choices. And that&#x27;s all for us. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s start becoming solution. But before that, we will understand. But what is the meaning? Off for mattered. Okay, diesel. And 2nd 1 is leave for Okay, So we will understand this in elementary form so that it will be easier on Mr First in forest. Oh, lasting. So, first of all, we will consider the FIFA letter. Then we will move through a full method. Okay, Sophie, for matters is that which of the items are which off the vomiting has been purchased first has been purchased in first place, will be sold in first place. So it becomes technical. Select us in this time with an example. Okay, let&#x27;s just suppose there isn&#x27;t. There are four days, one, three four on each of the dates. So these are days and these are juniors. So we have exit. Is that because Joe Okay, so let&#x27;s take it here to make it move yet. So when did one? As for few full method, we have purchased and units. Then on Day two, we have registrant units than 10 units. Then venues know what happens. There&#x27;s a A company Well, sense the finished goods are We can see the product. Okay, now the fever Mother sees vich ever item comes first. Okay, Which item has been purchasing? First place will be sold first. Okay, Now let&#x27;s see if the economy produces sense products. Let&#x27;s say when Bueller&#x27;s so the 20 units. If so, from where the 20 units will be a located. Daniel, it&#x27;s from this. And then units broke this bite Daniels from this one because they&#x27;re 10 units happy. The this these down units has been, but just in first place and followed by that 10 units will be located from this 20 years. Understand? 20 minutes. Okay, So life ice. What happens that whichever item has been purchasing first place, it will be sore first, like first in first up. So we have understood the meaning of FIFA Better no. Let&#x27;s come to a different matter. Let&#x27;s suppose there are days as usual when do 34 Let&#x27;s give the junior says similar. So that would be easy toe in this day. Now what happens when Eagle me here also applies Lethal weapon? So it will be selling the units which it has bean. So selling the units which has bean purchased actively said, Okay, let&#x27;s suppose the a company says that the owners that deal this who is estimate now? What happens? How How was that? Those 30 owners to be located? As I said, last in first out, and it was first in, first up. So the last the last thing means and you know, it&#x27;s vote date for and units from there and 10 units someday. Because we have we have opportunities to sell devore present tractor units. So first and from there must 1st 2nd from there and throw. Okay, You know what happens now? What happens then? In case off inflammation, inflammation repeaters. So let us understand that also in a in fluid inflammation times during that during the petered off inflation&#x27;s what happens, the prices off goods and services rises. Okay, prices off. Birds and services Rice. Okay, but in case off deflation price off. Absent services false. Okay, No portion is as this. Then she format third would produce higher invented account balances than the before matter. Okay, so, in case of inflation that say the price off the price, the price will be the air considering the influence Lee inflation every time in the format that Okay, so in flourishing Tang will imply that price will be rising. Like, let&#x27;s say, the price on dead one is five no less, but unit now, the price is rising. $6 per unit, seven per dollar unit and $8. Okay. Know what happens in gives a fearful mattered Okay, when the prices are rising. So whenever the company will sell the items, it will sell the items off low cost your low cost, No media. Okay, we have understood that in FIFA matter a complete willing to sell 30 units those that your should be. I located firstly as 10 units out off date, one on page one, then during the unit Sunday. So the low cost middle will be We re sold out first and higher and higher cost raw material will be less inventory so we can understand. We can understand from this example that in case off inflammation times, few for method will produce higher inventory account balances than the lethal letter. Okay, so I am again repeating that if that a company&#x27;s willing present, their team owners so located 30 units to sell because to side with the customer ve vill cell, low cost, raw material first because in inflation times the price is like this from proceeding time. But Okay, so we have 5678 No, in getting condition times. And as villus people legal produce had an inventory confidences. Okay, then. Really? For so the correct choices. What ISS it is E. That is invalidation of times. Okay, please note down the first example as well. A 2nd 1 Get that clear idea about the solution. And how did the But I Okay, that&#x27;s all forever solution. Thank you.

Puneet Prajapati · Answer

okay. Sylvia will understand the night, boss. First of all, he will understand. Like to system. What is the meaning of it? System forward. By that, we will understand how many dates of energy system we have. Okay, so it refers to the system which guards seeing, and but she&#x27;s off words. You mean directly true. Okay, so it is the system. Okay? It is the system which the car sailing, but Jay&#x27;s upwards immigrated through computers. So this is the most and even so we talked about. Look, this is the most important element of invented a system. Deputation. Okay. However, there is a system. There is a system bitch record sailing, but a chase off the course through computerized sophisticated computer race. Okay, however, almost in now, what is in a green wimpy system? We have computers off place of testicular philosophically called every transaction. Okay. Veteran to sail a purchase of goods, but not Jellystone. We have recently we have perpetual inventory system that this designed to record these healing purchase off boats through computers off. Okay, now what happens? Not all of the entities okay. Not all of the entities are able to employ such computers are very in their entity record this year in purchase by that. So because most of the entities or we can say small entities. All right, short off first, what we can see have less ferns who deploy, but it sure innuendo system. Okay, okay, because many off these small and it is will not be able to deploy perpetual and make this system into their entity. So So that is our solution for the current portion. Okay. What? So our current discussion and analysis matches with Joyce D That the perpetuation in my system is very costly in expensive for small entities, especially, okay. Will be employed in entities to the car goods. Okay. So you can write down what evidence apart forever. Choice D is the correct answer. Okay. Thank you.

Puneet Prajapati · Answer

because, let&#x27;s understand dickering solution. Okay, so there is a mat heard which we know ness, but make sure. Okay, what should? Okay. Requires Can you be quiet Recording. Oh, to journaling, please. Whenever the sale is May believe Mr. Okay, So there are two types off. Okay, so there are two types methods first monies, but actually, and 2nd 1 is beauty, about which I&#x27;m not talking about here, Okay. You never even case that rockets. We will help even if you have a daughter discussion over there. But however, the perpetual matter is the only matter which requires recording off journal entries whenever the same is made with the best. So this is generally happens. We consume most of the time that happens in games off, wind off, see, like whenever you. But she&#x27;s Let&#x27;s there. Parallels are forms of privileges from our, you know, big store market. What we can say like Moore&#x27;s. Okay. Did it is recording off to a journal entries whenever sale is made through the testimony. Okay, we also alone. We also know kind of stay less us $1 in damage. Okay, so we have did I have double solution. So the correct choice. So the correct choice is be okay, that this But eventually that&#x27;s all for our solution. However, you can like this this definition as his example. What the difference, that&#x27;s all. Well, first edition. Thank you.

Problem

Which of the following describes features of a pe…

Problem 10 Easy Difficulty

Which inventory costing method is almost always done on a perpetual basis?
A. specific identification
B. first-in, first-out
C. last-in, first-out
D. weighted average

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting