sample test ch 6

# sample test ch 6 - Sample Test Questions Ch 6 Circle the...

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Sample Test Questions Ch 6 Circle the best answer to each question. ____ 1. Under which method of cost flows is the inventory assumed to be composed of the most recent costs? a. average cost b. last-in, first-out c. first-in, first-out d. weighted average ____ 2. The inventory method that assigns the most recent costs to cost of good sold is a. FIFO b. LIFO c. average d. specific identification ____ 3. Beginning inventory, purchases and sales data for tennis rackets are as follows: Feb 3 Inventory 12 units @ \$15 11 Purchase 13 units @ \$17 14 Sale 18 units 21 Purchase 9 units @ \$20 25 Sale 10 units Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under First-in, first-out: a. cost of merchandise sold 491; ending inventory 90 b. cost of merchandise sold 120; ending inventory 461 c. cost of merchandise sold 461; ending inventory 120 d. cost of merchandise sold 90; ending inventory 491 NOTE: Try working this problem using perpetual LIFO instead and see what answers

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sample test ch 6 - Sample Test Questions Ch 6 Circle the...

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