1. Which of the following is not a common cost flow assumption used in costing inventory?
A.Average cost
B. Middle-in, first-out
C. First-in, first-out
d. Last-in, first-out
2. A physical count of merchandise inventory on November 30 reveals that there are 50 units on hand. Cost of goods sold under LIFO is
A. $846.
B. $421.
C. $438.
D. $863.
3.Baker Bakery Company just began business and made the following four inventory purchases in June:
June1 150 units$780
June10 200 units1,170
June15 200 units1,260
June28 150 units990
$4,200
A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is
A. $1,072.50.
B. $1,305.00.
C.$1,320.00.
D.$1,040.00
4. Inventory costing methods place primary reliance on assumptions about the flow of
A. good.
B. costs.
C. resale prices.
D. values.
5. The LIFO inventory method assumes that the cost of the latest units purchased are
A. the last to be allocated to cost of goods sold.
B. not allocated to cost of goods sold or ending inventory.
C. the first to be allocated to ending inventory.
D. the first to be allocated to cost of goods sold.
6. Which of the following is an inventory costing method?
A.Perpetual
B. Lower of cost or market
C. Specific identification
D. Periodic
7.Sales Discounts is a contra revenue account to Sales.
A. True
B. False
A.Average cost
B. Middle-in, first-out
C. First-in, first-out
d. Last-in, first-out
2. A physical count of merchandise inventory on November 30 reveals that there are 50 units on hand. Cost of goods sold under LIFO is
A. $846.
B. $421.
C. $438.
D. $863.
3.Baker Bakery Company just began business and made the following four inventory purchases in June:
June1 150 units$780
June10 200 units1,170
June15 200 units1,260
June28 150 units990
$4,200
A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is
A. $1,072.50.
B. $1,305.00.
C.$1,320.00.
D.$1,040.00
4. Inventory costing methods place primary reliance on assumptions about the flow of
A. good.
B. costs.
C. resale prices.
D. values.
5. The LIFO inventory method assumes that the cost of the latest units purchased are
A. the last to be allocated to cost of goods sold.
B. not allocated to cost of goods sold or ending inventory.
C. the first to be allocated to ending inventory.
D. the first to be allocated to cost of goods sold.
6. Which of the following is an inventory costing method?
A.Perpetual
B. Lower of cost or market
C. Specific identification
D. Periodic
7.Sales Discounts is a contra revenue account to Sales.
A. True
B. False