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Transfer of Materials Cost to Finished Production--Inventory Valuation: The ultimate, intended destination of direct materials is finished products or finished goods delivered to customers. The cost of materials used on…
Physical Inventory - Inventory Valuation: Even with a perpetual inventory system, periodic physical counts are necessary to discover and eliminate description between the actual count and the balances on materials…
Companies should generally use the same inventory pricing methods or interim financial reporting and make provisions for write downs to make market at interim dates on the same basis as…
American Institute of Certified Public Accountants (AICPA) Cost or Market Rules--Inventory Valuation The American Institute of Certified Public Accountants (AICPA) moved away from the traditional cost or market, whichever is…
Adjustments for Departures from the Costing Method Used--Inventory Valuation The problem of year end inventory valuation is primarily a question of the materials cost consumed in products manufactured and sold…
Adjusting Materials Ledger Cards and Accounts to Conform to Inventory Accounts - Inventory Valuation When the inventory count differs from the balance on the materials ledger card, the ledger card…
Cost or Market Whichever is Lower--Inventory Valuation: American costing tradition follows the practice of pricing year-end inventories at cost or market, whichever is lower (lower of cost or market). This…
Controlling and Costing Materials: After studying this chapter you should be able to: Effective materials management is essential in order to (1) provide the best service to customers, (2) produce…
Sidra Farid 
Rubab Ali 
Shamsa Rafique 
Abida Rehman