Part Il: (C) INVENTORY FLOWS (Module 10) Answer bor FIFA 1 which Inventory Flow method assumes that the FIRST items in inventory will be the FIRST to be sold? 2 Which inventory assumption method will result in the highest amount for Cost of Goods Sold? 3 Which Inventory Flow method io baped on FACT? 4 Assuming rising prices, which Inventory assumption method will result in the LOWEST amount for Ending Inventorg? 5 which Inventory assumption method assumes the SAME cost applies to all units? 6 what GAAP Concept requires that the same selected inventory method be used period after period? 7 What Inventory Method would you use IF you sold automobiles? 8 Assume inventory costs are rising rapidly and that your objective is to minimize your tax burden this period. What method would give you the lowest net income (i.e.highest cost of goods sold) and thus reduce your tax burden? Part ll: (D) LOWER of COST or MARKET RULE (Module 10) 1 This rule is based upon which GAAP Concept? 2 10 Computers (COST $2000 each) were purchased on Mar 1and were still on hand at the year-end closing on Deo 31 The cost from the supplier at this time had dropped to $1,750 (MARKET). What amount should be shown for the Asset account, Merchandise Inventory on the year-end Balance Sheet? 3 Will this (see # 2] affect the company's profit for the year (increase, decrease, or No Effect)? 4 If increase or decrease (see #3) by what amount