Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. jones co. is in a technology-intensive industry. r

Jones Co. is in a technology-intensive industry. Recently, one of its competitors introduced a new product...

60.1K

Verified Solution

Question

Accounting

Jones Co. is in a technology-intensive industry. Recently, oneof its competitors introduced a new product with technology thatmight render obsolete some of Jones's inventory. The accountingstaff wants to follow the appropriate authoritative literature indetermining the accounting for this significant market event.

Instructions

(a) Identify the primary authoritative guidance for theaccounting for inventories.

(b) List three types of goods that are classified as inventory.What characteristic will automatically exclude an item from beingclassified as inventory?

(c) Define “market” as used in the phrase“lower-of-cost-or-market.”

(d) Explain when it is acceptable to state inventory above costand which industries allow this practice.

Answer & Explanation Solved by verified expert
3.6 Ratings (319 Votes)
a The primary authoritative guidance for accounting for inventories are FASB ASC 330 Subtopic 10 sub section 05 This guidance notes tells about accounting principles for reporting for inventory Financial significance of    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

W74) Please answer in detail with EXCEL Function since I am learning in EXCEL function Tests with...

Statistics
Q

1. You brew a mug of coffee, but it is too hot to drink! You measure...

Physics
Q

Paragraph 1-2? Imagine you’re in a supervisory role at a corporation. You have a new, eager intern...

Economics
Q

A rectangular coil ABCD is rotated in uniform magnetic field with constant angular velocity about...

Physics
Q

18 Two concentric shells of masses M R and M are concentric as shown in...

Physics
Q

Solve |x + 4| = -7.A. No solutionB. x = -3 and x = ?11C....

Basic Math
Q

If f x 3x sin x cos x find f x Find f 2

Calculus
Q

Write an equation in slope intercept form of the line that passes through 5 4...

Algebra
Q

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage...

Accounting
Q

aterway Industries reported the following year-end information: ow much is Waterway's cost of goods manufactured...

Accounting
Q

On January 1, 2023, French Company acquired 60 percent of K-Tech Company for $300,000 when...

Accounting
Q

If you put $75,500 in the stock market, how many years would it take you...

Finance