Multiple Choice

$6$ Which inventory method will result in the highest ending inventory when costs are rising

and inventory quantities are stable:

a$.$ Weighted average.

b$.$ Moving average.

c$.$ FIFO.

d$.$ LIFO.

$7$ Cost of goods sold is calculated as:

a$.$ Beginning inventory $-$ net purchases $+$ ending inventory.

b$.$ Beginning inventory $+$ accounts payable $-$ net purchases.

c$.$ Net purchases $+$ ending inventory $-$ beginning inventory.

d$.$ Net Purchases $+$ beginning inventory $-$ ending inventory.

$8$ Companies using FIFO or average cost inventory methods must value inventory at:

a$.$ Net realizable value.

b$.$ Cost.

c$.$ Replacement cost.

d$.$ Lower of cost or net realizable value.

$9$ Which inventory method will always produce the same amount for cost of goods sold in a

perpetual inventory system as well as in a periodic inventory system?

a$.$ FIFO.

b$.$ LIFO.

c$.$ Weighted average.

d$.$ None of these answer choices are correct.