Question: Given the following inventory activity, what is ending inventory using the perpetual LIFO costing method? A. 75 units @ $5.00 and 50 units @ $3.50

Given the following inventory€‹ activity, what is using the perpetual LIFO costing€‹ method?

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 minusˆ’identification 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.

Quantity Unit Cost Date Beginning Balance 100 $5.00 September 17 Purchase 50 $3.50 September 24 Sale 25 September 29 Purchases 40 S6

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