2. Which statement is true regarding the purpose of using absolute cell referencing in your spreadsheet? ○ An absolute cell reference contains a dollar sign ($) in the row or column coordinate (or both) to indicate the result is a currency value. O You can use an absolute reference to keep a row and/or column constant. 3. Which statement below is true regarding the application of the three inventory costing methoods? O FIFO results in a lower gross profit when inventory costs are rising. O LIFO results in a lower gross profit when inventory costs are rising. ○ Weighted Average results in a lower gross profit when inventory costs are rising. 4. Companies can choose the most appropriate inventory costing method for their business (FIFO, LIFO, and weighted-average cost) for internal (management) reporting, but not for external and tax reporting. ○ True O False Revise your worksheet to reflect these updated assumptions and then answer the questions that follow. Sales Sale Price 22,000 units 27 Date Number of Units Unit Cost Total Cost Beginning 5,100 10.30 $52,530 March 12 6,300 10.20 64,260 June 5 5,000 10.10 50,500 October 22 Totals 10,700 9.90 105,930 27,100 $273,220 Required: 1. Use your spreadsheet to recalculate the Cost of Goods Sold, Inventory balances, and Gross Profit under each method and enter your results below: (Round your answers to the nearest whole dollar amount.) FIFO LIFO Weighted Average Cost of Goods Sold Ending Inventory Gross Profit

3.What is the purpose of the current ratio? Assume that Island Solutions want to compute its current ratio, which inventory method (FIFO or Average Cost) would give a more meaningful current ratio. Explain. 4.Island Solutions has discovered that all of its competitors are using another inventory method and is worried. Can the company change its inventory accounting method, on what grounds? Discuss two (2) trade-offs for the company.

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Discuss the two (2) components of every Sales dollar, and defend the choice of a business to utilize the LIFO inventory costing system, in a period of rising prices.

Which method would produce the same unit cost for Inventory and Cost of Good Sold in periods of rising prices? Select one: a. Weighted Average b. FIFO c. LIFO

H7. For the same transactions, why does the weighted-average cost method provide different value for ending inventory and COGS depending on whether the periodic or perpetual inventory system is used?   Select one: a. Perpetual inventory calculates and assigns costs as items are sold, while periodic inventory calculates and assigns costs at the end of the period.   b. Perpetual inventory calculates and assigns costs at the end of the period, while periodic inventory calculates and assigns costs as items are sold.   c. Perpetual inventory counts all the purchases for the month first before calculating the average cost, while periodic calculates the average cost after every transaction.   d. Perpetual inventory and periodic inventory will not provide different values using  Explain also wrong options and explain with details

Under the weighted average cost, when a unit is sold, the average cost of each unit in inventory is assigned to cost of goods sold. True O False

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When inventory costs rise and inventory quantities are not decreasing, what does the LIFO produces?

Which of the following statements Is/are true? Multiple Cholce In a period of rising costs and stable inventory levels, using the FIFO method leads to a higher taxable income and higher net income compared to the LIFO method. All of the other answer choices are true. In a period of falling costs and stable inventory levels, cost of goods sold is the same under LIFO and FIFO. In a period of rising costs and stable inventory levels, using the LIFO method leads to a lower taxable income and higher net income compared to the FIFO method.