Quiz 5 solution

Quiz 5 solution - units for $43 each. What is the cost of...

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Question 1 Multiple Choice Which inventory costing method most closely approximates current cost for each of the following: Ending Inventory Cost of Goods Sold a. FIFO FIFO b. FIFO LIFO c. LIFO FIFO d. LIFO LIFO Correct Answers Answer A. Answer B. Answer C. Answer D. Unanswered Question 2 Multiple Choice In a period of rising prices which inventory method generally provides the greatest amount of net income? Correct Average cost. FIFO. LIFO. Specific identification. Unanswered Question 3 Multiple Choice June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 10 units that cost $20 per unit. During the current month, the company purchased 60 units at $22 each.
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Sales during the month totaled 45
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Unformatted text preview: units for $43 each. What is the cost of goods sold using the FIFO method? Correct $1,935. $990. $970. $945. Unanswered Question 4 Multiple Choice During 2010, Green Co. received mercha ndise on consignment from a consignor. Upon receipt, Green made no entry to the inventory account for goods received. At December 31, Green Co.'s year end, it included the consigned goods in its ending inventory count. The effect of this on Green Co.'s December 31, 2010 financial statements would be Correct net income, current assets, and retained earnings were overstated. net income was correct and current assets were understated. net income and current assets were overstated, and current liabilities were understated. net income, current assets, and retained earnings were understated. Unanswered Question 5: Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the following statements are correct? A. Option A B. Option B C. Option C D. Option D...
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Quiz 5 solution - units for $43 each. What is the cost of...

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