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CHAPTER 6 Reporting and Analyzing Inventory ANSWERS TO QUESTIONS ?1.Agree. Effective pedigree oversight is frequently the primeval to successful business operations. Management attempts to adduce sufficient quantities and types of goods to accommodate expected customer demand. It also seeks to stave off the cost of carrying inventories that be clearly in ex-cess of anticipated sales. ?2.Inventory items endure 2 common characteristics: (1) they ar owned by the federation and (2) they ar intended to be sold to customers in the fair fly the coop of business. ?3.Just-in-time memorial forethought is the practice of manufacturing or purchasing inventory just-in-time to fill a sales order. Since inventory quantities argon unploughed at very low amounts, just-in-time management reduces the costs associated with carrying inventory as well as the danger of obsolescence. ?4.Taking a physical inventory involves actually counting, weighing, or cadence a ll(prenominal) kind of inventory on hand. Retailers, such as ironw be retentivitys, generally have thousands of different items to count. This is normally done when the breed is closed. Diane will probably count items and mark the quantity, description, and inventory rush 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 tins inventory if the terms of sale are discombobulate shipping point. (b)Bradshaw Company should include goods shipped to a consignee in its i nventory. 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 serious essay, order it on our website: BestEssayCheap.com

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