FIFO, LIFO, and Average Cost

The difference between Cost of Goods Available for Sale and Ending inventory is:

• Beginning inventory.

• Cost of Goods Sold

• Inventory purchase.

• Inventory adjustment.

The inventory cost flow assumption where the cost of the most recent purchases are likely to remain in inventory is:

• FIFO.

• LIFO.

• Weighted-average cost.

• Specific Identification.

The inventory cost flow assumption where the cost of the most recent purchase is matched first against sales revenues is

• FIFO.

• LIFO.

• Weighted-average cost.

• Specific Identification.

Which of the following should not be included in the

physical inventory of a company?

• Goods held on consignment from another company.

• Goods shipped on consignment to another company.

• Goods in transit from another company shipped FOB

  shipping point.

• None of the above.

Cost of goods available for sale consist of two elements:

beginning inventory and:

• ending inventory.

• cost of goods purchased.

• cost of goods sold.

• All of the above.

At the beginning of the year, Bennett Supply has inventory of $3,500. During the year, the company purchases an additional $12,000 of inventory. An inventory count at the end of the year reveals remaining inventory of $4,000. What amount will Bennett report for cost of goods sold?

• $11,000.

• $11,500.

• $12,000.

• $12,500.

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

The account Cost of Goods sold is considered an expense.

• True

• False

Which of the following methods best matches the actual physical flow for most companies?

• FIFO.

• LIFO.

• Weighted-average cost.

• Specific identification.

We had two items costing $20 each. We buy two more at $25 each. We use FIFO and sell one. How much is cost of goods sold?

• $20

• $22.50

• $25

• $20 or $25, depending on which item the customer picks up

Tags

CCSS.7.EE.B.3

CCSS.7.NS.A.3

We had two items costing $20 each. We buy two more at $25 each. We use LIFO and sell one. How much is cost of goods sold?

• $20

• $22.50

• $25

• $20 or $25, depending on which item the customer picks up

Tags

CCSS.7.EE.B.3

CCSS.7.NS.A.2

CCSS.7.NS.A.3