Response to the following :
Question-1. What are the journal entries for these transactions showing possible inventory cost flows?
1) Purchased, on credit 10,000 lbs. of mix at $.50 per lb.
2) Used 8,000 lbs. in production
3) A physical inventory of material reveals a shortage of 200 lbs.
4) Added $4,000 of direct labor and $2,000 of manufacturing overhead to production.
5) Completed production of $12,000 of finished good.
What are the balances in the Raw Material, WIP and Finished Goods?
Question-2 . Do the inventory control systems of periodic inventory and perpetual inventory effect the measurement of inventory when we use LIFO or FIFO?
Question-3. What is the latest Accounting Standard Update (ASU) on Inventory (topic 330) issued by FASB?