7) On January 1, 2018, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $100,000. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:Year-endEnding inventory atyear-end costsCost Index2018$126,0001.052019130,0001.102020153,6001.20What inventory balance should Badger report on its 12/31/2018 balance sheet?A) $126,000B) $121,000C) $120,000D) $100,000
8) Cost of goods sold is given by:
9) In a period when costs are rising and inventory quantities are stable, the inventory method that would result in the highest ending inventory is:
10) When reported in financial statements, a LIFO Reserve (allowance account) usually:
11) In a perpetual inventory system, the cost of inventory sold is:A) Debited to accounts receivable.B) Credited to cost of goods sold.C) Debited to cost of goods sold.D) Not recorded at the time goods are sold.
12) In a periodic inventory system, the cost of inventories sold is: