Acctg. 2-Chapter 5- Inventory

Using the chart, calculate the ending inventory using FIFO.

• 105.28
• 111.33
• 108.36
• 102.58

Using the chart, calculate the ending inventory using LIFO.

• 105.28
• 111.33
• 108.36
• 102.58

Using the chart, calculate the ending inventory using WAVCO.

• 105.28
• 111.33
• 108.36
• 109.59

During times of increasing prices, which method yields the lowest ending inventory?

• LIFO
• FIFO
• WAVCO
• SPID

The following are all methods of inventory valuation except:

• Specific Identification Method
• FIFO
• FILO
• LIFO

During times of increasing prices, which method produces the lowest Cost of Merchandise Sold?

• FIFO
• LIFO
• WAVCO
• SPID

During times of decreasing prices, which method produces the lowest net income?

• FIFO
• LIFO
• WAVCO
• SPID

During times of increasing prices, which method yields the highest ending inventory.

• FIFO
• LIFO
• WAVCO
• SPID

Why do you need to know how to estimate interim inventory valuations?

• In the event of a natural catastrophe to get reimbursed from your insurance company for the loss of inventory.
• In the event of theft to get reimbursed from your insurance company.
• To create interim financial statements.
• All of the above.

A physical inventory must be conducted at least one a year.

• False
• True