Question 3 correct mark 100 out of 100 flag question

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Question 3 Correct Mark 1.00 out of 1.00 Flag question Question text (T / F) Specific identification attaches actual cost of each unit of product to units in ending inventory and cost of goods sold. Select one: True False Feedback The correct answer is 'True'.
Question 4 Correct Mark 1.00 out of 1.00
Flag question Question text (T / F) FIFO assumes that the costs of the first goods purchased are those charged to cost of goods sold when goods are sold. During periods of rising prices, FIFO creates higher net income since the costs charged to cost of goods sold are lower. Select one:
Question 5 Correct Mark 1.00 out of 1.00 Flag question Question text (T / F) LIFO (last-in, first-out): Ending inventory consists of the oldest costs. Select one:
The correct answer is 'True'. Question 6 Correct Mark 1.00 out of 1.00 Flag question Question text (T / F) Perpetual inventory procedure requires an entry to Merchandise Inventory whenever goods are purchased, returned, sold, or otherwise adjusted, so that inventory records reflect actual units on hand at all times. Thus, an entry is required to record cost of goods sold for each sale. Select one:
Question 7 Correct Mark 1.00 out of 1.00 Flag question Question text (T / F) Inventory turnover ratio = (Cost of goods sold) / (Average inventory ) Select one:
True False Feedback Correct. The correct answer is 'True'. Question 8 Correct Mark 1.00 out of 1.00 Flag question Question text (T / F) Inventory turnover measures the efficiency of the firm in managing and selling inventory. It gauges the liquidity of the firm's inventory. Select one:
Question 9 Correct Mark 1.00 out of 1.00
Flag question Question text (T / F) Overstated ending inventory results in an overstatement of cost of goods sold and an understatement of gross margin and net income. Select one:
Question 10 Correct Mark 1.00 out of 1.00 Flag question Question text (T / F) In a period of rising prices, FIFO results in the lowest cost of goods sold. Select one:
Correct. The cost of goods sold consists of the earliest purchases at the lowest costs in a period of rising prices. The correct answer is 'True' ABC Inc. sells socks. During February 2016, its inventory records for one brand of its socks were as follows: Quantity Price per pair Beginning Inventory 10 pairs $20.00 = $200 February 6 Purchase 4 pairs $25.00 = $100 February 10 Purchase 5 pairs $27.40 = $137 February 15 Sale 7 pairs N/A See information above. Using this information, determine ending inventory under the weighted- average method.

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