Short Answer Questions 155. Identify the items that are included in merchandise inventory. (In your answer address the special situations of goods in transit, consigned goods, and damaged goods.) ...

Short Answer Questions

155. Identify the items that are included in merchandise inventory. (In your answer address the special situations of goods in transit, consigned goods, and damaged goods.)

156. What specific costs and deductions are used to determine the final cost of merchandise inventory?Identify all costs including the incidental costs.

157. Describe the internal controls that must be applied when taking a physical count of inventory.

158. Explain the effects of inventory valuation methods on the cost of ending inventory, income, and income taxes.

159. How do the consistency concept and the full disclosure principle affect inventory valuation?