1 The assignment of costs to cost of goods sold and to inventory using specific
ID: 2369200 • Letter: 1
Question
1 The assignment of costs to cost of goods sold and to inventory using specific identification is the same for both the perpetual and periodic systems. T or F
2 The inventory valuation method that results in the lowest taxable income in a period of inflation is:
3During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is:
4A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, 8 units were sold for $55 each. Using the FIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?
E. $276
A. LIFO method B. FIFO method C. Weighted-average cost method D. Specific identification method E. Gross profit methodExplanation / Answer
1]false
2]
3]
4]C. $288
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