19. Ma advantage of this method a. It limits the risk of b. Companies may net ha

Question

19. Ma advantage of this method a. It limits the risk of b. Companies may net have quantities te me couonesman c. It lowers inventory levels and costs d. Companies can respond to individual custoe requests which of having obsolete ltems in ieveay 20. Which of the following items will increase inventoriable conts for the Purchase d c. d. Freight charges paid by the purchaser returns and allowances granted by the selle buyer of oold iscounts s taken by the parchaser by the seller 21. Which of the following is not a common cost flow assumption used in costing inv a. First-in, first-out b. Middle-in, first-out c. Last-in, first-out d. Average cost 22. When applying the lower of cost or market rule to inventory valuation,the wood "matker generally means a. current replacement cost b. original cost. c. resale value. d. original cost, less physical deterioration 23. Jenks Company developed the following information about its inventories in ppying bo lower of cost or market (LCM) basis in valuing inventories: CostMarket $114,000 $120,000 76,000 Product 80,000 160,000 162,000 If Jenks applies the LCM basis, the value of the inventory reported on the bulance sheet would be a. $354,000. b. $358,000. c. $350,000. d. $362,000.

Explanation / Answer

19. b.Companies may not have quantities to meet customer demand

20. d Freight charges paid by the purchaser

21. b Middle-in, First-Out

22. a. current replacement cost

23. $114,000 + $76,000 + $160,000 = $350,000

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