Which of the following methods of inventory (stock) valuation will result in the highest cost of sales

Question:

Which of the following methods of inventory (stock) valuation will result in the highest cost of sales during a period of rising prices and constant or rising volumes of inventories (stocks)?

(a) Weighted-average cost

(b) Last-in, first-out (LIFO)

(c) Average cost for period purchases

(d) First-in, first-out (FIFO)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Financial Accounting

ISBN: 9781292244471

8th Edition

Authors: Pauline Weetman

See More Books

Question Posted: Mar 06, 2024 07:01 AM

See More Questions

1. How should the balances of Progress Billings and Construction in Progress be shown at reporting dates prior to completion of a long-term contract a. Progress billings as income, construciton in...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
You are required to analyze the tutorial exercise below (quantitative analysis) using the SPSS software package. You need to pay attention to how to interpret SPSS results correctly (such as...
Solve the following initial value problem. y" + 2y + 17y=0; y(0) = 1, y'(0) = -1
Why do we not deduct interest costs from the cash flows to be discounted?
The following costs were incurred by Force Petroleum Company during the fiscal year ending May 31, 2020. REQUIRED: Prepare journal entries for the above transactions, assuming that Force Petroleum...
In a contract dispute between a US company and a Canadian company, the contract itself referred to provisions of the Uniform Commercial Code. Do these references alone preempt the contract from being...
The trial balance of Lexington Inn Company at December 31, 2012, and the data needed for the month-end adjustments follow. Adjustment data at December 31 follow: a. Prepaid insurance still in force,...
Part A Learning Goal: To understand that the charge stored by capacitors represents energy; to be able to calculate the stored energy and its changes under different circumstances. An air-filled...
The Ash Company has an inventory (trading stock) that includes the following three items: Description Tables Chairs Beds Purchase cost 4,500 3,000 5,300 Selling price 3,250 2,800 5,500 Distribution...
If the last-in, first-out (LIFO) method of inventory (stock) valuation is used, what is the amount of closing inventory (stock)? (a) 1,400 (b) 1,470 (c) 1,540 (d) 1,680 The following information...
Find the separation vector from the source point (2, 8, 7) to the field point (4, 6, 8). Determine its magnitude (), and construct the unit vector .
Zed received a $10,000 early distribution from his pension plan, and 20% ($2,000), was withheld for federal income tax. He received a check for $ 8,000 . How much must Zed roll over to a qualified...
Assume the marginal tax rates associated with each taxable income level are as follows: 10% ($0 - $19,525); 12% ($19,526 - $38,700); 22% ($38,701 - $82,500); 24% ($82,501 - $157,500); 32% ($157,501 -...
Assume that a train arrives from both directions and comes to a complete halt at the bridge, waiting for a signal. To avoid a collision, only one train can be signalled at a time in this instance....
Robbie works for General Chemical, Inc.. He makes $60,000 per year (below the income limit for Social Security taxes). How much does he pay in total FICA taxes (Social Security plus Medicare) each...
From Case Study Tumors, which of the following statements best expresses the null hypothesis for this experiment. [2 pt; L2; I.A.1] There is no significant difference in the average tumor mass from...
What is the major distinction? (a) Between revenues and gains and (b) Between expenses and losses?
Use this circle graph to answer following Exercises. 1. What fraction of areas maintained by the National Park Service are designated as National Recreation Areas? 2. What fraction of areas...
(a). Using the list of transactions at question A5.5 prepare a spreadsheet similar to that presented in Table5.3. (b). Show that the spreadsheet totals satisfy the accounting equation. Table 5.3...
(a). Using the list of transactions at question A5.5 prepare a spreadsheet similar to that presented in Table5.3. (b). Show that the spreadsheet totals satisfy the accounting equation. Table 5.3...
(a). Using the list of transactions at question A5.5 prepare a spreadsheet similar to that presented in Table5.3. (b). Show that the spreadsheet totals satisfy the accounting equation. Table 5.3...
2. If f EY, the graph of f is the set of points (x, f(x)) = ExY, for x = E. Suppose E is compact. Prove that f is continuous on E if and only if its graph is compact. (You may take the distance...
3. Suppose a fast food restaurant that reaches on average 100 customers per hour. Herself has capacity to serve on average 150 customers per hour It is known that customers wait on average 2 minutes...
mo The Tsiolkovsky rocket equation is Av ve In = mj It calculates the maximum possible change in velocity for a rocket based on several parameters. ve is the velocity of the rocket's exhaust gasses...

Which of the following methods of inventory (stock) valuation will result in the highest cost of sales

Question:

Step by Step Answer:

b LIFO increases cost of sales by using the earliest poss...View the full answer

Financial Accounting

Students also viewed these Business questions