1.At a time of declining prices, which cost flow assumption will result in the highest endinginventory?A. FIFOB. LIFOC. Weighted averageD. Either A or C2. When the cost of inventory is rising, which inventory cost flow method will produce the lowestamount of cost of goods sold?A. FIFOB. Weighted Average.C. All methods will produce the same amount of cost of goods sold.D. LIFO200The inventory records for Raymond Co. reflected the followingBeginning Inventory @ May 1 200 units @ $1.00First Purchase @ May 7Second Purchase @ May 17Third Purchase @ May 23Sales @ May 31B. $1.15C. $1.14D. $1.31B. $130C. $324D. $340300 units @ $1.10 =400 units @ $1.20100 units @ $1.30 = 120900 units @ $1.50 135030go3. Determine the weighted average cost per unit for May.A. $1.22.4.Determine the amount of cost of goods sold assuming the LIFO cost flow method.A. $1,140B. $1,040C. $1,000D. $9405. Determine the amount of gross margin assuming the FIFO cost flow method.A. $114

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1.At a time of declining prices, which cost flow assumption will result in inventory? A. FIFO B. LIFO C. Weighted average D. Either A or C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1.At a time of declining prices, which cost flow assumption will result in the highest ending
inventory?
A. FIFO
B. LIFO
C. Weighted average
D. Either A or C
2. When the cost of inventory is rising, which inventory cost flow method will produce the lowest
amount of cost of goods sold?
A. FIFO
B. Weighted Average.
C. All methods will produce the same amount of cost of goods sold.
D. LIFO
200
The inventory records for Raymond Co. reflected the following
Beginning Inventory @ May 1 200 units @ $1.00
First Purchase @ May 7
Second Purchase @ May 17
Third Purchase @ May 23
Sales @ May 31
B. $1.15
C. $1.14
D. $1.31
B. $130
C. $324
D. $340
300 units @ $1.10 =
400 units @ $1.20
100 units @ $1.30 = 120
900 units @ $1.50 1350
30
go
3. Determine the weighted average cost per unit for May.
A. $1.22
.4.Determine the amount of cost of goods sold assuming the LIFO cost flow method.
A. $1,140
B. $1,040
C. $1,000
D. $940
5. Determine the amount of gross margin assuming the FIFO cost flow method.
A. $114

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