itm The ite purchaed fiet . Daisy Company purchased towo idenical invent Which o
ID: 2573637 • Letter: I
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itm The ite purchaed fiet . Daisy Company purchased towo idenical invent Which of the sllowing statements is tre? 1 00, and the ines pearchased secnd cost $15.00. Daisy sold one of the o $24 00 A. Ending inventory will be lower if Daisy uses weighted avernge than if FIFo were uned methsod is uedgned to ending inventory will be the sanve no manier which cot sold will be higher if Daisy uses FIFO dhan if weighted average were sed D. Gross margin will be higher if Daisy uses uFhan it would be if FIFO were used are rising, which method of inventory, if any, will result in the highest ending inventory? A. Weighted average. B. FIFo C. LIFo D. None of these; inventory methods cannot affect cash flows. 3. Which of the following businesses is most likely to use a specific idenification cost flow method? A. Hardware store B. Grocery store C. Car dealership D. Thrift shop 4. Which inventory costing method will produce an amount for ending inventory that is closest to current market value? A. Weighted average. Specific identification C. FIFOExplanation / Answer
Q1 Answer is D. Ending inventory will be lower if Daisy uses weighted averag than if it uses FIFO.
The explanation is in case of rising prices, ending inventory is at the maximum value in case of FIFO.
Q2.Answer is B. FIFO
Q3. Answer is C. Car dealership
Q4. Answer is C. FIFO
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