BF170 Chapter 10 Review

Goods available for sale needs is allocated between

• beginning inventory and inventory purchases

• beginning inventory and ending inventory

• ending inventory and cost of goods sold

• inventory purchases and cost of goods sold

When applying the lower of cost or net realizable value (LCNRV) method, inventory value reported cannot exceed the

• replacement cost

• market floor

• selling price less a normal profit margin

• selling price less the expected cost of completion and disposal

IFRS accounting for inventory (IAS 2) does not permit which of the following cost flow assumptions?

• LIFO

• FIFO

• Weighted Average

• Specific Identification

The Stone Corporation reported a beginning LIFO reserve of $30,000 and an end of the year LIFO reserve of $35,000. The cost of goods sold was $192,000 under LIFO. The cost of goods sold under FIFO should be

• $157,000

• $187,000

• $197,000

• $222,000

A periodic system of inventory

• reduces record keeping

• increases record keeping

• increasing the cost of maintaining inventory

• eliminates the need for a physical count