40.During periods when costs are rising and inventory quantities are stable, ending inventory will be:
41.In periods when costs are rising, LIFO liquidations:
42.The use of LIFO during a long inflationary period can result in: A. A net increase in income tax expense.B. An inflated balance sheet.C. Significant cash flow advantages over FIFO.D. A reduction in inventory turnover over FIFO.
43.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:
44.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:
Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):• 40 units at $100• 70 units at $80• 170 units at $60Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.45.Ending inventory using the average cost method (rounded) is: