Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 10, Problem 6MC
When would using the FIFO inventory costing method produce higher inventory account balances than the LIFO method would?
A. inflationary times
B. deflationary times
C. always
D. never
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
When would using the FIFO inventory costing method produce higher inventory account balancesthan the LIFO method would?A. inflationary timesB. deflationary timesC. alwaysD. never
During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory?
Da. FIFO method
b. LIFO method
c. average cost method
d. Cannot tell without more information.
Which Inventory Valuation method gives the highest profit when inventory costs are rising?
a. Weighted Average
b. FIFO
c. It is not possible to calculate which methd gives highest profit
d. LIFO
Chapter 10 Solutions
Principles of Accounting Volume 1
Ch. 10 - If a company has four lots of products for sale,...Ch. 10 - If a company has three lots of products for sale,...Ch. 10 - When inventory items are highly specialized, the...Ch. 10 - If goods are shipped FOB destination, which of the...Ch. 10 - On which financial statement would the merchandise...Ch. 10 - When would using the FIFO inventory costing method...Ch. 10 - Which accounting rule serves as the primary basis...Ch. 10 - Which type or types of inventory timing system...Ch. 10 - Which of these statements is false? A. If cost of...Ch. 10 - Which inventory costing method is almost always...
Ch. 10 - Which of the following describes features of a...Ch. 10 - Which of the following financial statements would...Ch. 10 - Which of the following would cause periodic ending...Ch. 10 - Which of the following indicates a positive trend...Ch. 10 - What is meant by the term gross margin?Ch. 10 - Can a business change from one inventory costing...Ch. 10 - Why do consignment arrangements present a...Ch. 10 - Explain the difference between the terms FOB...Ch. 10 - When would a company use the specific...Ch. 10 - Explain why a company might want to utilize the...Ch. 10 - Describe the goal of the lower-of-cost-or-market...Ch. 10 - Describe two separate and distinct ways to...Ch. 10 - Describe costing inventory using first-in,...Ch. 10 - Describe costing inventory using last-in,...Ch. 10 - Describe costing inventory using weighted average....Ch. 10 - How long does it take an inventory error affecting...Ch. 10 - What type of issues would arise that might cause...Ch. 10 - Explain the difference between the flow of cost...Ch. 10 - What insights can be gained from inventory ratio...Ch. 10 - Calculate the goods available for sale for...Ch. 10 - Company accepts goods on consignment from R...Ch. 10 - The following information is taken from a companys...Ch. 10 - Complete the missing piece of information...Ch. 10 - Akira Company had the following transactions for...Ch. 10 - Akira Company had the following transactions for...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Prepare Journal entries to record the following...Ch. 10 - If a group of inventory items costing $15,000 had...Ch. 10 - If Wakowski Companys ending inventory was actually...Ch. 10 - Shetland Company reported net income on the...Ch. 10 - Compute Altoona Companys (a) inventory turnover...Ch. 10 - Complete the missing pieces of McCarthy Companys...Ch. 10 - Calculate the goods available for sale for Soros...Ch. 10 - X Company accepts goods on consignment from C...Ch. 10 - Considering the following information, and...Ch. 10 - Complete the missing piece of information...Ch. 10 - Bleistine Company had the following transactions...Ch. 10 - Bleistine Company had the following transactions...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - If a group of inventory items costing $3,200 had...Ch. 10 - If Barcelona Companys ending inventory was...Ch. 10 - Tanke Company reported net income on the year-end...Ch. 10 - Compute Westtown Companys (A) inventory turnover...Ch. 10 - Complete the missing pieces of Delgado Companys...Ch. 10 - When prices are rising (inflation), which costing...Ch. 10 - Trini Company had the following transactions for...Ch. 10 - Trini Company had the following transactions for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Use the first-in, first-out (FIFO) cost allocation...Ch. 10 - Use the last-in, first-out (LIFO) cost allocation...Ch. 10 - Use the weighted-average (AVG) cost allocation...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Compare the calculations for gross margin for A76...Ch. 10 - Company Elmira reported the following cost of...Ch. 10 - Assuming a companys year-end inventory were...Ch. 10 - Use the following information relating to Shana...Ch. 10 - Use the following information relating to Clover...Ch. 10 - When prices are falling (deflation), which costing...Ch. 10 - DeForest Company had the following transactions...Ch. 10 - DeForest Company had the following transactions...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Use the first-in, first-out method (FIFO) cost...Ch. 10 - Use the last-in, first-out method (LIFO) cost...Ch. 10 - Use the weighted-average (AVG) cost allocation...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Compare the calculations for gross margin for B76...Ch. 10 - Company Edgar reported the following cost of goods...Ch. 10 - Assuming a companys year-end inventory were...Ch. 10 - Use the following information relating to Singh...Ch. 10 - Use the following information relating to Medinas...Ch. 10 - Assume your company uses the periodic inventory...Ch. 10 - Consider the dilemma you might someday face if you...Ch. 10 - Use a spreadsheet and the following excerpts from...
Additional Business Textbook Solutions
Find more solutions based on key concepts
How can an employee attach high valence to high levels of performance, yet not be motivated to be a high perfor...
Principles of Management
S4–14 Calculating the current ratio
Learning Objective 6
End of Line Montana Registration has these account b...
Horngren's Accounting (12th Edition)
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (4th Edition)
Define cost object and give three examples.
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (5th Edition)
What can a company do to reduce its workers' compensation insurance costs?
Construction Accounting And Financial Management (4th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- In rimes of rising prices, the inventory cost method that will yield the highest cost of goods sold is (a) LIFO. (b) weighted-average. (c) FIFO. (d) none of the above.arrow_forwardWhich of these statements is false? A. If cost of goods sold is incorrect, ending inventory is usually incorrect too. B. C. D.arrow_forwardWhich of the following is an advantage of the periodic inventory system? A. frequent physical inventory counts B. cost prohibitive C. time consuming D. real-time information for managersarrow_forward
- In a period of falling prices, the use of which inventory cost flow method would typically result in the highest cost of goods sold? a. FIFO b. LIFO c. Weighted average d. Specific identificationarrow_forwardIf inventory prices are rising the method of inventory valuation that gives the highest profit and the highest ending inventory is:a. FIFO.b. LIFO.c. Weighted average.d. Perpetual method.arrow_forwardWhich inventory costing method results in the lowest net income during a period of rising inventory costs? a. Weighted-average b. Specific identification c. First-in, first-out (FIFO) d. Last-in, first-out (LIFO)arrow_forward
- Which of the following statements is NOT true of Economic Order Quantity? O A. The economic order quantity mathematically determines the minimum total inventory cost B. The EOQ is directly proportional to the sales per period O C. The optimal order size is determined by the EOQ model D. The EOQ ignores inventory reorder costs and inventory carrying costsarrow_forwardIdentify that if prices are rising, which inventory cost flow method will produce the highest amount of ending inventory? A. Weighted average B. LIFO C. FIFO S. LIFO, FIFO, and weighted average will all produce the same amount of cost of goods sold.arrow_forwardWhich inventory cost flow assumption generally results in the lowest reported amount for cost of goods sold when inventory costs are rising? a. Lower of cost and net realizable value. b. First-in, first-out (FIFO). c. Last-in, first-out (LIFO). d. Weighted-average cost.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Chapter 6 Merchandise Inventory; Author: Vicki Stewart;https://www.youtube.com/watch?v=DnrcQLD2yKU;License: Standard YouTube License, CC-BY
Accounting for Merchandising Operations Recording Purchases of Merchandise; Author: Socrat Ghadban;https://www.youtube.com/watch?v=iQp5UoYpG20;License: Standard Youtube License