Accounting II - Chapter 20

Using the price of merchandise purchased last to calculate the cost of merchandise sold first.

• last-in, first-out inventory costing method (LIFO)

• weighted-average inventory costing method

• stock ledger

• inventory record

Using the average cost of beginning inventory plus merchandise purchased during a fiscal period to calculate the cost of merchandise sold.

• gross profit method of estimating inventory

• stock record

• weighted-average inventory costing method

• first-in, first-our inventory costing method (FIFO)

A file of stock records for all merchandise on hand.

• inventory record

• stock ledger

• market value

• gross profit method of estimating inventory

A form used during a physical inventory to record information about each item of merchandise on hand.

• stock record

• market value

• lower of cost or market inventory costing method

• inventory record

Estimating inventory by using the previous year's percentage of gross profit on operations

• gross profit method of estimating inventory

• first-in, first-our inventory costing method (FIFO)

• stock ledger

• market value

A form used to show the kind of merchandise, quantity received, quantity sold, and balance on hand.

• market value

• stock ledger

• stock record

• inventory record

Using the lower of cost or market price to calculate the cost of ending merchandise inventory.

• market value

• lower of cost or market inventory costing method

• inventory record

• last-in, first-out inventory costing method (LIFO)

The price that must be paid to replace an asset.

• inventory record

• stock record

• market value

• gross profit method of estimating inventory

Using the price of merchandise purchased first to calculate the cost of merchandise sold first.

• last in, first-out, inventory costing method

• first-in, first-out inventory costing method

• gross profit method of estimating inventory

• weighted-average inventory costing method

The gross profit method of estimating inventory makes it possible to prepare monthly income statements without taking a physical inventory.

• True

• False