38.A method of alleeating merchandise cost reqaires each item sold and each item

Question

38.A method of alleeating merchandise cost reqaires each item sold and each item remaining in inventory be separately identitied with respect to its purchase cost is called a. last-in, first-out costing b. first-in. first-out costing c. specific identifikation costing d. weighted-average costing e none of the above 39.A method of allocating merchandise cost that assigns the most recem parchased costs to the ending inventory shown in the balance sheet is called a. last-in, first-out b. flrst-in, first-ou c. specific identification d. weighted-awerage e noee of the above 40.A method of alloeating merchandise cost that assumes the sales in period were made from the recently purchased merchandise and its earliest merchandise bought remain in the inverntory is a. last-in, first-oun b. first-in, first-out c. specific idemification e. none of the above 41. A method of alloeating merchandise cost that is hased on the average cost of identical units is called a. last-in, first-out b. first-in, first-out e, specific identification d. weighted-average 42. The following data applies to a psrticulse item of merchandise 95.1 On hand at start of period l" purchase 2ed purchase 5.20 600 5.50 No. of units available for sale On hand at end of period No. of units sold deeing period Using the first in, firnst-out casting method, the cost of merchandise sold would be . $2,730 b, $8,390 e. $841o d. $3,570 e. nose of the above

Explanation / Answer

FIFO first in - first out = The material s recieved first are to be issued first when material requisition is recieved, closing stock valuation will be of price of latest purchase

LIFO Last in - First out = The materials recieved last are to b issued first when material requisitio is recieved, Closing Stock is valued at the oldest stock price

Specific Identification cost = The requisition of stock is made out o specific ientification of stock as per the price of it

so this method of costing is specific identification cost

Weighted average cost:- at the time of requisiton it will be issued at average cost price .so closing inventory is also valued at average cost price.

38-c

39-b

40-a

41-d

42- As closing stock is 500 units and it is FIFO method so last purchase price will be the price for the closing inventory. 500*5.5 = 2750

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.