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in year 1, moss company signed a contract with a supplier to purchase 42,000 subassemblies at $30 each during year 2. when the contract was signed, the contract price was less than the net realizable value of the inventory. the company uses the fifo method to account for inventory. assume moss company uses a periodic inventory system. required a. the cost of subassemblies has declined, and the estimated net realizable value is now $1,190,000 on december 31 of year 1. prepare any year-end entry required for this cost decline. b. the subassemblies are received in year 2 when the net realizable value is estimated at $1,190,000. the contract was paid in full in cash. prepare the required purchase entry in year 2.

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AnjaliP102

To keep track of the quantity and movement of inventory items, inventory transactions are employed. 42,000 subassemblies for $30 from Moss source.

A checkbox should be used to indicate whether the registrant (1) has submitted each report required under Section 13 or 15(d) of the Securities Exchange Act of 1934.

What is an inventory transaction?

  • The quantity & movements for inventory items are tracked using inventory transactions. Applications that communicate with the inventory system, like Purchasing, Receiving, and Task Management, produce transaction records. Transactions can also be produced from activities on inventory objects.
  • Transaction records are created by programs like Task Management, Purchasing, and Receiving that interact with the inventory system. Actions on inventory objects can also result in transactions.
  • Use this report to examine the details of inventory movement by date, warehouse, transaction code, and reason code. Totals for each warehouse and date are provided at the report's end.
  • Shifting the cost of both the finished products sold to the expenditure account for such cost of goods sold will allow you to document this transaction. As a result of this transfer, the cost of inventory is accounted for it as an expense on the income statement rather than an asset on the balance sheet.

To learn more about inventory transactions refer to :

https://brainly.com/question/28836219

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