When prices are falling the cost of goods sold

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Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
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Chapter 2 / Exercise 27
Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
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44.When prices are falling, the cost of goods sold reported on the income statement on a LIFO basis is generally:a)equally likely to be higher or lower on a LIFO basis as opposed to a FIFO basisb)greater than on a FIFO basisc)equal to ending inventory reported on a FIFO basisd)lower than on a FIFO basis
45.Which of the following statements is false?
46.When the LIFO method of inventory valuation is used, cost of goods sold is assumed to consist of the:
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Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
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Chapter 2 / Exercise 27
Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
Tan
Expert Verified
CHAPTER 6Accounting
47.Which of the following statements is generally true when prices are rising?
Table 3Assume the following data for Blaylock Company for 20X5:Beginning inventory10 units at $70 eachMarch 18 purchase25 units at $75 eachApril 15 sale30 unitsJune 10 purchase30 units at $80 eachOctober 30 purchase22 units at $83 eachNovember 15 sale40 units48.Refer to Table 3. Under the perpetual LIFO method, cost of goods sold would be valued at:a)$3,275b)$5,300c)$5,491d)$5,276
49.Referring to Table 3, under the perpetual FIFO method, cost of goods sold on the income statement would be:
50.Referring to Table 3, under the perpetual average cost method, cost of goods sold on the income statement for the April 15 sale would be:
51.Given the following data, what is cost of goods sold under a periodic inventory system?Sales revenue $950,000Beginning inventory 150,000Ending inventory230,000Purchases720,000
CHAPTER 6Accounting 52.In a periodic inventory system, the quantity of ending inventory is determined by:a)subtracting units sold from units purchasedb)a physical inventory countc)looking at the balance in the inventory accountd)subtracting cost of goods sold from the beginning inventory balance

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