Need correct answer Which inventory costing method results in thelowest ending inventory value during a period ofrising prices?a) FIFOb) LIFOc) Weighted Averaged) Specific Identification

Explanation of FIFO (First-In, First-Out):FIFO is an inventory costing method where the oldest…

Answered: Which inventory costing method results…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA1: International Financial Reporting Standards

Section: Chapter Questions

Problem 8MCQ

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Similar questions

When inventory items are highly specialized, the best inventory costing method is ________. A. specific identification B. first-in, first-out C. last-in, first-out D. weighted average
Considering the following information, and applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory?
What does an increase in inventory imply? How would this increase in inventory be reported under the indirect method?
The following information is taken from a companys records. Applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory?
What are two advantages and disadvantages of the periodic inventory system?
( Appendix 6B) For each inventory costing method, perpetual and periodic systems yield the same amounts for ending inventory and cost of goods sold. Do you agree or disagree with this statement? Explain.
The costs to be accounted for consist of which of the following? A. costs added during the period B. costs of the units in ending inventory C. costs started and transferred during the period D. costs in the beginning inventory and costs added during the period
Identify items missing in determining cost of goods sold For (a) through (e), identify the items designated by X and Y. A. Purchases (X + Y) = Net purchases B. Net purchases + X = Cost of inventory purchased C. Inventory (beginning) + Cost of inventory purchased = X D. Inventory available for sale X = Cost of inventory before estimated returns E. Cost of goods sold before estimated returns X = Cost of goods sold
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
Which of the following inventory method measures most closely the current cost of inventory? a. FIFO b. LIFO c. Weighted average d. Specific identification
Which inventory costing method is almost always done on a perpetual basis?A. specific identificationB. first-in, first-outC. last-in, first-outD. weighted average
Which of the following inventory cost flow assumptions produces the same ending inventory values under both the periodic and perpetual systems? a. FIFO b. LIFO c. Average d. Dollar-Value LIFO

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Which inventory costing method results in the lowest ending inventory value during a period of rising prices? a) FIFO b) LIFO c) Weighted Average d) Specific Identification