Given the following inventory activity, what is ending inventory using the perpetual LIFO costing method? A. 75
Question:
A. 75 units @ $5.00 and 50 units @ $3.50 and 40 units @ $6.00
B.100 units @ $5.00 and 25 units @ $3.50 and 40 units @ $6.00
C.125 units @ $4.50 and 40 units @ $6.00
D.165 units @ $4.86
4. A drawback to using ________ when inventory costs are rising is that the company reports lower net income.
A. Specific minusidentification costing
B. Average costing
C. FIFO
D. LIFO
If the ending inventory in Period 1 is understated, gross profit for Year 1 is:
A. Understated.
B. Not affected.
C. Overstated.
D. Determined by beginning inventory.
The last step in using the gross profit method to estimate ending inventory is to:
A. Estimate the beginning inventory.
B. Estimate the cost of goods sold.
C. Calculate the cost of goods available for sale.
D. Estimate the ending inventory.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
Accounting Principles
ISBN: 9781119707110
14th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell