Blake Company purchased two identical inventory items. The item purchased first cost $17.00, and the item purchased second cost $18.00. Blake sold one of the items for $30.00. Which of the following statements is true? Multiple Choice Gross margin will be higher if Blake uses LIFO rather than the FIFO inventory cost flow method. The dollar amount assigned to ending inventory will be the same no matter which inventory cost fow method is used Cost of goods sold will be higher if Bhake uses the FIFO rather than the weighted average inventory cost flow method Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.

Blake Company purchased two identical inventory items. The item purchased first cost $17.00, and the item purchased second cost $18.00. Blake sold one of the items for $30.00. Which of the following statements is true? Multiple Choice Gross margin will be higher if Blake uses LIFO rather than the FIFO inventory cost flow method. The dollar amount assigned to ending inventory will be the same no matter which inventory cost fow method is used Cost of goods sold will be higher if Bhake uses the FIFO rather than the weighted average inventory cost flow method Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.

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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Hi thank you for your assiatance.When I submit the answer for the attached I asked over here yesterday. 3. Determine the share of the cost of goods available for sale calculated in Part 1 that should be assigned to ending inventory and to goods sold under: (Do not round the intermediate calculations and round the final answers to nearest whole dollar.) FIFO : Cost of goods sold $6988.00 is incorrect? can you please help why.
Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of $300, a normal profit margin of $35, and a current replacement cost of $250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Black’s ending inventory.
Blake Company purchased two identical inventory items. The item purchased first cost $27.00, and the item purchased second cost $28.00. Blake sold one of the items for $50.00. Which of the following statements is true? Multiple Choice O The dollar amount assigned to ending inventory will be the same matter which inventory cost flow method is used. Cost of goods sold will be higher if Blake uses the FIFO rather than the weighted-average inventory cost flow method. Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method. Gross margin will be higher if Blake uses LIFO rather than the FIFO inventory cost flow method.
Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizabl e-value(LCNRV) basis in valuing inventories: Product Cost NRV A $114,000 $120,000 B 80,000 76,000 C 160,000 162,000 After Jenks applies the LCNRV rule, the value of the inventory reported on the balance sheet would be
Star Company recognized $500 of cost of goods sold. Note that Star is only recording the cost of goods sold part of the transaction and not the sales revenue. Star uses the perpetual inventory system. Which of the following answers reflects the effect of recognizing the cost of goods sold on the financial statements? Balance Sheet Income Statement Assets = A. 500 B. (500) C. (500) D. (500) Multiple Choice O O оо Liabilities + - Option B Option A Option C Option D (500) Stockholders' Equity 500 (500) n/a (500) Revenue n/a n/a n/a n/a - Expense 500 500 500 n/a Net Income (500) (500) (500) n/a Statement of Cash Flows n/a n/a 500 Operating Activity n/a
What will be the correct answer for weight average cost method for ending inventory and cost of goods sold?
answer in text form please (without image)
This exercise tests your understanding of the four inventory methods. List the name of the inventory method that best fits the description. Assume that the cost of inventory is rising. 1. Results in a cost of ending inventory that is close to the current cost of replacing the inventory 2. Used to account for automobiles, jewelry, and art objects 3. Generally associated with saving income taxes 4. Provides a middle-ground measure of ending inventory and cost of goods sold 5. Maximizes reported income 6. Enables a company to keep reported income from dropping lower by liquidating older layers of inventory (assume rising prices) 7. Writes inventory down when its net realizable value drops below its historical cost 8. Results in an old measure of the cost of ending inventory 9. Matches the most current cost of goods sold against sales revenue 10. Enables a company to buy high-cost inventory at year-end and thereby decrease reported income and income tax
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Product A Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory? BUDE Cost $ 180 220 160 140 90 C Per Unit Selling Price $ 200 240 220 240 125 Cost NRV Per Unit Inventory Value
Smith Company's inventory cost is $100. The expected sales price is $110, estimated selling costs are $6. The normal gross profit ratio is 20% of selling price. The replacement cost of the inventory is $95. Smith Company uses the LIFO inventory method so must use the lower of cost or market approach and this inventory item should be valued at Correct answer came back as $95, Id love an explanation for this. Thank you!
Hh1. just Item E and Item G
Suppose Barry had doubled its sales as well as its inventories, accounts receivable, income and equity during 2019. How would that information affect the validity of the ratio analysis? Keeping in mind averages and the effects of rapid growth and ratios if averages are not used. No calculations are needed.