The specific Identification method:

1. ...is similar to the moving average
2. ...is used for custom made jewelries
3. ...is used in the clothing stores
4. ....is similar to FIFO

Using FIFO, the current asset Merchandise Inventory will report:

1. The exact amount of each inventory unit on hand
2. The oldest cost of purchase
3. The most recent cost of purchase
4. The average costs of all the purchases

Which of the following should not be included in a company's physical inventory?

1. Goods shipped on consignment to another company
2. Goods in transit sold to a customer FOB Destination
3. Goods in transit purchased from a supplierFOB Shipping Point
4. Goods held onconsignmentfrom other companies

Ending inventory is overstated by $4,000. What is the effect on the cost of goods sold, and profit?

1. Overstated; Overstated
2. Understated; Understated
3. Overstated; Understated
4. Understated; Overstated