questions ch 6

questions ch 6 - practice to sell the oldest units first....

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Brittney Acevedo Professor Abatemarco Questions 4. A-1 FOB destination, A-2 FOB shipping point. B) Once the Item is sold the item is recorded as inventory. 5. $3,020 you include everything but traveling costs. 7. David is using the LIFO method which assumes that the latest goods purchased are the first to be sold. LIFO seldom coincides with the actual physical flow of inventory. FIFO often parallels the actual physical flow of merchandise; it generally is good business
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: practice to sell the oldest units first. 10. A) FIFO b) Average cost method c) LIFO 11. In the balance sheet, FIFO results in an ending inventory that is closest to current value; inventory under LIFO is the farthest from current value. FIFO has the highest gross profit. 16. It will be understated in 2009, in 2010 it will be overstated and combined it will be correct....
View Full Document

Ask a homework question - tutors are online