Menu
support@graduatecourseshelp.com
+1(805) 568 7317

explain when it is acceptable to state inventory above cost and which industries all 645849

Jones Co. is in a technology intensive industry. Recently, one of its competitors introduced a new product with technology that might render obsolete some of Jones’s inventory. The accounting staff wants to follow the appropriate authoritative literature in determining the accounting for this significant market event.

Instructions

(a) Identify the authoritative literature addressing inventory pricing.

(b) List three types of goods that are classified as inventory. What characteristic will automatically exclude an item from being classified as inventory?

(c) Define “net realizable value” as used in the phrase “lower of cost or net realizable value.”

(d) Explain when it is acceptable to state inventory above cost and which industries allow this practice.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now