Exam 2 - Merchandise inventory is reported as a current...

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Page 1 Merchandise inventory is reported as a current asset on the balance sheet. ____________________ Items waiting to be used in production are considered to be raw materials. ____________________ In a manufacturing business, inventory that is ready for sale is called finished goods inventory. ____________________ Inventory items on an assembly line in various stages of production are classified as Work in process. ____________________ Rudolf Diesel Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $9.00 Purchases: June 18 4,500 8.00 November 8 3,000 7.00 A physical inventory on December 31 shows 3,000 units on hand. Under the FIFO method, the December 31 inventory is _____________________ In a period of rising prices, FIFO will have lower cost of goods sold than LIFO _____________________ The inventory turnover ratio is computed by dividing cost of goods sold by 365 days. average inventory
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Exam 2 - Merchandise inventory is reported as a current...

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