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5. When inventory prices are increasing, which inventory valuation method would give you the lowest cost of goods sold? A. ABUD B. C. D. FIFO LIFO Weighted Average Specific Identification

5. When inventory prices are increasing, which inventory valuation method would give you the lowest cost of goods sold? A. ABUD B. C. D. FIFO LIFO Weighted Average Specific Identification

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...
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5. 6. 7. 8. 9. Choose the most correct answer. When inventory prices are increasing, which inventory valuation method would give you the lowest cost of goods sold? A. B. C. D. Weighted Average Specific Identification The net method of recording sales violates the: Expense Recognition Principle Cost Principle ABCD A. B. C. D. FIFO LIFO The formula for calculating the COGS when using the periodic inventory system is C. D. COGS=COST-SALVAGE VALUE/LIFE B COGS SALES LESS EXPENSES COGS BI+NP-EI COGS BEGING INVENTORY-ENDING INVENTORY-GAFS Revenue Recognition Principle None of the Above The Allowance method of recording Bad Debt Expenses is required because of the: ABDU A. Revenue Reognition Principle B. Expense Recognition Principle ABCD D. Materiality Principle C. Cost Principle The Direct method of recording bad debts can be used if: A. The amount is small B. the Materiality Principle can be used C. the Revenue Principle is not violated D. None of the above
Transcribed Image Text:5. 6. 7. 8. 9. Choose the most correct answer. When inventory prices are increasing, which inventory valuation method would give you the lowest cost of goods sold? A. B. C. D. Weighted Average Specific Identification The net method of recording sales violates the: Expense Recognition Principle Cost Principle ABCD A. B. C. D. FIFO LIFO The formula for calculating the COGS when using the periodic inventory system is C. D. COGS=COST-SALVAGE VALUE/LIFE B COGS SALES LESS EXPENSES COGS BI+NP-EI COGS BEGING INVENTORY-ENDING INVENTORY-GAFS Revenue Recognition Principle None of the Above The Allowance method of recording Bad Debt Expenses is required because of the: ABDU A. Revenue Reognition Principle B. Expense Recognition Principle ABCD D. Materiality Principle C. Cost Principle The Direct method of recording bad debts can be used if: A. The amount is small B. the Materiality Principle can be used C. the Revenue Principle is not violated D. None of the above
4. Itco uses a perpetual inventory system. During the month of October, the following transactions took place: 10/1 10/5 10/10 10/12 10/15 10/22 Required: a. b. C. d. 2,000 uts. @ $5.00/ut Balance: Purchased: 5,000 uts. @ $5.25/ut Purchased: 8,000 uts. @ $5.50/ut Sold 12,000 uts. for $10.00 ea. Purchased: 4,000 uts. @ $5.75/ut Sold 5,000 uts. for $10.00 ea. NOTE: YOU MAY USE A SPREADSHEET RATHER THAN THE RECORD PROVIDED. Complete the perpetual inventory record (provided) for the above transactions using FIFO Make the required journal entry on 10/5 for the FIFO method. Make the required journal entry on 10/12 for the FIFO method. Complete the perpetual inventory record (provided) for the above transactions using LIFO
Transcribed Image Text:4. Itco uses a perpetual inventory system. During the month of October, the following transactions took place: 10/1 10/5 10/10 10/12 10/15 10/22 Required: a. b. C. d. 2,000 uts. @ $5.00/ut Balance: Purchased: 5,000 uts. @ $5.25/ut Purchased: 8,000 uts. @ $5.50/ut Sold 12,000 uts. for $10.00 ea. Purchased: 4,000 uts. @ $5.75/ut Sold 5,000 uts. for $10.00 ea. NOTE: YOU MAY USE A SPREADSHEET RATHER THAN THE RECORD PROVIDED. Complete the perpetual inventory record (provided) for the above transactions using FIFO Make the required journal entry on 10/5 for the FIFO method. Make the required journal entry on 10/12 for the FIFO method. Complete the perpetual inventory record (provided) for the above transactions using LIFO
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