CP 6-4 Required: Choose the method of inventory valuation that corresponds to each of the statements that follow: 1. FIFO 2. LIFO 3. Weighted average. 4. Specific identification _Matches actual flow of goods with actual flow of costs in most cases _Matches old costs with new sales prices _Results in the lowest net income in periods of falling prices _Matches recent costs with new sales prices _Does not assume any particular flow of goods _Best suited for situations in which inventory consists of perishable goods Values ending inventory at approximate replacement cost

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cp 6-4
12:49
ACC111-Student Te...
CHAPTER SIX / Assigning Costs to Merchandise First US Edition
CP 6-4
Required: Choose the method of inventory valuation that corresponds
to each of the statements that follow:
1. FIFO
2. LIFO
3. Weighted average.
4. Specific identification
Matches actual flow of goods with actual flow of costs in most
cases
Matches old costs with new sales prices
Results in the lowest net income in periods of falling prices
Matches recent costs with new sales prices
Does not assume any particular flow of goods
Best suited for situations in which inventory consists of perishable
goods
Values ending inventory at approximate replacement cost
СР 6-5
Listed below are four common accounting errors. Using the format
shown, indicate the effect, if any, of each of the errors on the
company's financial statements for the items shown. Assume the
company uses the perpetual inventory system and that the ending
inventory balance will be adjusted to the physical count at year-end.
Dashboard
Calendar
To Do
Notifications
Inbox
因
Transcribed Image Text:12:49 ACC111-Student Te... CHAPTER SIX / Assigning Costs to Merchandise First US Edition CP 6-4 Required: Choose the method of inventory valuation that corresponds to each of the statements that follow: 1. FIFO 2. LIFO 3. Weighted average. 4. Specific identification Matches actual flow of goods with actual flow of costs in most cases Matches old costs with new sales prices Results in the lowest net income in periods of falling prices Matches recent costs with new sales prices Does not assume any particular flow of goods Best suited for situations in which inventory consists of perishable goods Values ending inventory at approximate replacement cost СР 6-5 Listed below are four common accounting errors. Using the format shown, indicate the effect, if any, of each of the errors on the company's financial statements for the items shown. Assume the company uses the perpetual inventory system and that the ending inventory balance will be adjusted to the physical count at year-end. Dashboard Calendar To Do Notifications Inbox 因
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