C8 3 40 the inventory method that will always produce

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Financial Accounting: The Impact on Decision Makers
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Chapter 5 / Exercise 5-16
Financial Accounting: The Impact on Decision Makers
Norton/Porter
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C8 - 3
We have textbook solutions for you!
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Financial Accounting: The Impact on Decision Makers
The document you are viewing contains questions related to this textbook.
Chapter 5 / Exercise 5-16
Financial Accounting: The Impact on Decision Makers
Norton/Porter
Expert Verified
40) The inventory method that will always produce the same amount for cost of goods sold in a periodic inventory system as in a perpetual inventory system would be:
41) In a perpetual average cost system:
42) In a period when costs are rising and inventory quantities are stable, the inventory method that would result in the highest ending inventory is:
43) During periods when costs are rising and inventory quantities are stable, cost of goods sold will be:
44) During periods when costs are rising and inventory quantities are stable, ending inventory will be:
45) The use of LIFO during a long inflationary period can result in:
46) Which of the following is false regarding the FIFO inventory method?
47) Company A is identical to Company B in every regard except that Company A uses FIFO and Company B uses LIFO. In an extended period of rising inventory costs, Company A's gross profit and inventory turnover ratio, compared to Company B's, would be: Gross Profit Inventory Turnover a. lower lower b. higher higher c. higher lower d. lower higher C) Option C
48) Company C is identical to Company D in every respect except that Company C uses LIFO and Company D uses average costs. In an extended period of rising inventory costs, Company C's gross profit and inventory turnover ratio, compared to Company D's, would be: Gross Profit Inventory Turnover
49) Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition): C8 - 4
40 units at $100 70 units at $80 170 units at $60 Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. Ending inventory using the average cost method (rounded) is:
50) Ending inventory using the FIFO method is:
51) Ending inventory using the LIFO method is:
52) In comparing the ending inventory balances of FIFO and LIFO, the ending inventory value under FIFO less the ending inventory balance under LIFO results in a difference of:

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