$11)$The inventory valuation method that results in the lowest taxable income in a period of inflation is:$$ALIFO method.BFIFO method.CWeighted$-$average cost method.DSpecific identification method.EGross profit method$\mathrm{.}12)$ Gotham Company reported a December $31$ ending inventory balance of $$412,000.$ The following additional information is also available:$$ The ending inventory balance of $$412,000$ included $$72,000$ of consigned inventory for which Gotham was the consignor.$$ The ending inventory balance of $$412,000$ included $$22,000$ of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.$$ The ending inventory balance of $$412,000$ did not include goods costing $$48,000$ that were purchased by Gotham on December $28$ and shipped FOB destination on that date. Gotham did not receive the goods until January $2$ of the following year.$$ The ending inventory balance of $$412,000$ included damaged goods at their original cost of $$38,000.$ The net realizable value of the damaged goods was $$10,000.$ The ending inventory balance of $$412,000$ included $$43,000$ of consigned inventory for which Gotham was the consignee.$$Based on this information, the correct balance for ending inventory on December $31$ is:A$$247,000$B$$341,000$C$$362,000$D$$309,000$E$$319,00013)$ The inventory valuation method that has the advantages of assigning an amount to inventory on the balance sheet that approximates its current cost, and also mimics the actual flow of goods for most businesses is:$$AFIFO$.$BWeighted average.CLIFO.DSpecific identification.EAll of the inventory valuation methods accomplish this$\mathrm{.}14)$ All of the following statements related to goods on consignment are true except:AGoods on consignment are goods provided by the owner, call the consignor.BA consignee sells goods for the owner.CThe consignor continues to own the consigned goods.DThe consignee reports the goods in its inventory until sold.EThe consignor reports the goods in its inventory until sold$\mathrm{.}15)$ Pettis needs to determine its year$-$end inventory. The warehouse contains $20,000$ units, of which $3,000$ were damaged by flood and cannot be sold. Another $2,000$ units were purchased and shipped FOB shipping point, and are in transit. The company also consigns goods and has $4,000$ units at a consignees location. How many units should Pettis include in its year$-$end inventory?A$29000$B$21000$C$23000$D$19000$E$2600016)$ The inventory valuation method that tends to smooth out erratic changes in costs is:$$AFIFO$.$BWeighted average.CLIFO.DSpecific identification.EWIFO.$**17)$ Axme Corporation uses a weighted$-$average perpetual inventory system. August $2,10$ units were purchased at $$12$ per unit. August $18,15$ units were purchased at $$14$ per unit. August $29,12$ units were sold. What was the amount of the cost of goods sold for this sale?A$$148\mathrm{.}00$B$$150\mathrm{.}50$C$$158\mathrm{.}40$D$$210\mathrm{.}00$E$*$ $$330\mathrm{.}0018)$ A company has inventory of $15$ units at a cost of $$12$ each on August $1.$ On August $5,$ it purchased $10$ units at $$13$ per unit. On August $12$ it purchased $20$ units at $$14$ per unit. On August $15,$ it sold $30$ units. Using the FIFO periodic inventory method, what is the value of the inventory at August $15$ after the sale?$$A$$140$B$$160$C$$210$D$$380$E$$59019)$ Thelma Company reported cost of goods sold for Year $1$ and Year $2$ as follows:$$ Year $1$ Year $2$Beginning inventory$$$ $120,000$ $ $130,000$Cost of goods purchased$250,000275,000$Cost of goods available for sale$370,000405,000$Ending inventory$130,000135,000$Cost of goods sold$$$ $240,000$$ $270,000$Thelma Company made two errors:$1)$ ending inventory at the end of Year $1$ was understated by $$15,000$ and$2)$ ending inventory at the end of Year $2$ was overstated by $$6,000.$Given this information, the correct cost of goods sold figure for Year $2$ would be:A$$291,000$B$$276,000$C$$264,000$D$$285,000$E$$249,00020)$ Damaged and obsolete goods that can be sold:$$AAre never counted as inventory.BAre included in inventory at their full cost.CAre included in inventory at their net realizable value.DShould be disposed of immediately.EAre assigned a value of zero.