ACC 311 WORKSHOP 7.2 CHAPTER QUESTIONS
Download 1. Explain the lower-of-cost-or-market approach to valuing inventory. 5. Explain the gross profit method of estimating ending inventory. 7. Explain the retail inventory method of estimating ending inventory. 12. Explain the LIFO retail inventory method. 13. Discuss the treatment of freight-in, net markups, normal spoilage, and employee discounts in the application of the retail inventory method. 16. When a company changes its inventory method to LIFO, an exception is made for the way accounting changes usually are reported. Explain the difference in the accounting treatment of a change to the LIFO inventory method from other inventory method changes. 17. Explain the accounting treatment of material inventory errors discovered in an accounting period subsequent to the period in which the error is made.