Merchandise Inventory Worksheet

Merchandise (= goods) inventory includes:

• All goods are owned by a company and held for sale.

• All goods in transit.

• All goods are on consignment.

• Only damaged goods.

• All goods in the stores of company.

Costs included in the Merchandise Inventory account can include:

• Invoice price minus any discount.

• Transportation-in.

• Storage.

• Insurance.

• All of these.

During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is:

• Specific identification method.

• Average cost method.

• Weighted-average method.

• FIFO method.

• LIFO method.

The inventory valuation method that results in the lowest taxable income in a period of inflation is:

• LIFO method.

• FIFO method.

• Weighted-average cost method.

• Specific identification method.

• Gross profit method.

Which of the following inventory costing methods will always result in the same values for ending inventory and cost of goods sold regardless of whether a perpetual or periodic inventory system is used?

• FIFO and LIFO

• LIFO and weighted-average cost

• Specific identification and FIFO

• FIFO and weighted-average cost

• LIFO and specific identification

An overstatement of ending inventory will cause

• An overstatement of assets and equity on the balance sheet.

• An understatement of assets and equity on the balance sheet.

• An overstatement of assets and an understatement of equity on the balance sheet.

• An understatement of assets and an overstatement of equity on the balance sheet.

• No effect on the balance sheet.

Acceptable inventory methods include:

• LIFO method.

• FIFO method.

• Specific identification method.

• Weighted average method.

• All of these.

• $3,500.

• $3,800.

• $3,960.

• $3,280.

• $3,640.

• $304

• $296

• $288

• $280

• $276

August 29, 12 units were sold. What was the amount of the cost of goods sold for this sale?

• $148.00.

• $150.50.

• $158.40.

• $210.00.

• $330.00.