Inventory Valuation Quiz

What is the first step in the specific identification method for valuing inventory?

• Calculate the profit margin

• Calculate the cost of goods available for sale

• Calculate the cost of goods sold

• Calculate the cost of ending inventory

In the example provided, how many units were in the beginning inventory?

• 15 units

• 25 units

• 95 units

• 70 units

What was the total cost of goods available for sale in the example?

• $1,110

• $430

• $1,540

• $300

How many units were sold during the period in the example?

• 10 units

• 70 units

• 25 units

• 95 units

What is the formula for calculating the cost of goods sold?

• Cost of goods sold equals profit margin

• Cost of ending inventory minus cost of goods available for sale

• Cost of goods available for sale minus cost of ending inventory

• Cost of goods available for sale plus cost of ending inventory