163. Discuss inventory accounting concepts and issues.
INVENTORY
164. What costs are included in inventory of manufacturing and merchandising firms?
COSTS INCLUDED IN INVENTORY
165. How are inventories valued subsequent to acquisition?
VALUATION SUBSEQUENT TO ACQUISITION
166. What are the cost-flow assumptions used in inventory measurement?
COST-FLOW ASSUMPTIONS
167. How do Merchandising and Manufacturing firms report product costs and changes in Inventory?
RECOGNITION OF PRODUCT COSTS
168. Compare and contrast the effect on net income, cost of goods sold, and inventory of the FIFO, LIFO, and
weighted-average cost flow assumptions.
COMPARISON OF AND CHOICE AMONG COST-FLOW ASSUMPTIONS
169. What does it mean for a firm to reverse a portion of a previously accrued charge, such as
the expense creating a warranty liability or a restructuring liability? What is the effect of a
reversal on the firm’s income statement, balance sheet, and statement of cash flows in the
period of the reversal?
170. Describe the similarities and differences between the allowance method for uncollectibles
and the allowance method for warranties.