Cox Co. accounts for its inventory using the LIFO cost method. An inventory loss from a permanent market decline of $360,000 occ
urred in May. Cox appropriately recorded this loss in May after its March 31 quarterly report was issued. What amount of inventory loss should be reported in Cox’s quarterly income statement for the 3 months ended June 30?
Last in first out (LIFO) is a method used in inventory where the cost of most recently purchased goods is the one to be expensed first. Also current losses are the first to be reported.
An inventory loss incurred in a quarter must not be deferred, but recorded as items within an interim must be reported in the same period they were incurred, unless it can be redeemed before the end of the fiscal year. It is not considered a temporary item.
The loss reported in May will be reported for that quarter in June.
There are numerous reasons, things like war, immigration, increased poverty, or things like unpredictable natural disasters. When a hurricane strikes and destroys entire cities and housing it has to be fixed quickly and that is spending that was not planned since you can't expect things like that. Wars often cost much more than what was planned because bad things happen and they need to be fixed. Immigration can lead to an increase in social welfare spending since not all immigrants find a job quickly and establish themselves in the society.
Increasing its sales revenue is NOT the only way a firm can increase its profits.
A firm can also increase its profit by reducing its total costs. When the sales revenue stays the same and the total cost decreases, the revenue will increase (without an increasing sales revenue).
<span>One is through innovation. New innovation meant new
jobs for the nation. One example is Bheki Kunene, a young entrepreneur of South
Africa. At age 27, he founded Mind Trix Media providing jobs and a profit. Next
is it improves economy by being able to partner with big companies in the other
countries.</span>
