question 7 In a period of rising prices, the inventory method which tends to give the highest reported cost of goods sold and the lowest net income is Group of answer choices 1)LIFO 2)Average cost 3)FIFO 4)None of these answer choices are correct.

question 7 In a period of rising prices, the inventory method which tends to give the highest reported cost of goods sold and the lowest net income is Group of answer choices 1)LIFO 2)Average cost 3)FIFO 4)None of these answer choices are correct.

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Description: question 7In a period of rising prices, the inventory method which tends to give the highest reported cost of goods sold and the lowest net income isGroup of answer choices1)LIFO2)Average cost3)FIFO4)None of these answer choices are correct.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4MC: In rimes of rising prices, the inventory cost method that will yield the highest cost of goods sold...

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When would using the FIFO inventory costing method produce higher inventory account balances than the LIFO method would? A. inflationary times B. deflationary times C. always D. never
In rimes of rising prices, the inventory cost method that will yield the highest cost of goods sold is (a) LIFO. (b) weighted-average. (c) FIFO. (d) none of the above.
10.In periods of rising prices (inflation), the use of which of the following inventory cost flow method would result in the lowest cost of goods sold a. First-in, first-out method b. Last-in, first-out method c. Weighted average method d. Moving average method
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During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory? Da. FIFO method b. LIFO method c. average cost method d. Cannot tell without more information.
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The answer is d, ex In a period of rising prices, the inventory method which tends to report the lowest inventory is a. FIFO. b. LISH. c. Specific identification. d. Average - cost.
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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
22.Which inventory costing method has a stabilizing effect on profit, such that during a period of rising prices its use produces a not so high cost of goods sold and not so low profit as the earlier lower costs tend to stabilize the effect of increasing prices on both cost of goods sold and ending inventory? a. First-in, first-out method b. Last-in, first-out method c. Specific identification method d. Average method
Which of the following variations of the retail inventory method would generally result in the lowest cost-to-retail ratio in a period of rising prices? a. FIFO b. LIFO c. average cost d. lower of average cost or market
Identify that if prices are rising, which inventory cost flow method will produce the highest amount of ending inventory? A. Weighted average B. LIFO C. FIFO S. LIFO, FIFO, and weighted average will all produce the same amount of cost of goods sold.