Inventory management use templet dp | ACCT | Capella University

Answer questions regarding inventory management. USE TEMPLET

Introduction

Inventories are the least liquid form of any assets. In other words, they cannot be converted into cash easily. Inventories can be in the form of raw material, goods under process, or finished goods, but unless the finished goods are sold, cash is tied up into inventories. Similarly, if the raw material is not converted into final goods, then cash is blocked in raw material. Therefore, managing inventories and supply chains is very important for merchandising businesses.

Have you ever taken advantage of a preinventory sale at your favorite retail store? Many stores offer bargain prices to reduce the merchandise on hand and to minimize the time and expense of taking the inventory. A smaller inventory also enhances the probability of taking an accurate inventory since the store has less merchandise to count.

From your studies you know that companies use inventory amounts to determine the cost of goods sold. This major expense affects a merchandising company’s net income. Now, you examine the importance and role of inventories in preparing an accurate income statement and balance sheet. Your work will also stress the importance of having accurate inventory figures and the serious consequences of using inaccurate inventory figures. After more study, you should understand how taking inventory connects with the cost of goods sold figure on the store’s income statement, the retained earnings amount on the statement of retained earnings, and both the inventory figure and the retained earnings amount on the store’s balance sheet.

Overview

This assessment focuses on cost flow assumptions and inventory valuation. It requires an understanding of:

  • The value of proper merchandise inventory valuation for an organization’s financials.
  • The concept of the physical flow of goods.
  • The most commonly used inventory valuation methods.
  • How to use alternative historical cost methods for valuing merchandise inventory.
  • How to use the inventory turnover ratio as a tool for financial analysis.

Instructions

Answer questions correctly. When you are satisfied with your responses, save and submit your template in the courseroom.

Step 1: Identify the costs to be included when calculating inventory cost.

Step 2: Explain the three methods of costing and which one will yield the highest tax net income where price level is declining.

Step 3: Describe alternative methods of calculating inventory cost.

Step 4: Calculate the inventory turnover for a company.

Step 5: Identify which methods to determine shrinkage or shortage in the physical inventory.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

  • Competency 1: Define accounting terminology and its application to accounting principles. 
    • Identify the costs to be included when calculating inventory cost.
    • Explains the three methods of costing and which one will yield the highest tax net income where price level is declining.
    • Explain methods to determine shrinkage or shortage in the physical inventory.
  • Competency 2: Apply accounting cycle strategies to manage business financial events. 
    • Describe alternative methods of calculating inventory cost.
    • Calculate the inventory turnover for a company.
  • Competency 4: Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards. 
    • Convey clear meaning through appropriate word choice and usage.
Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency