Chapter 8, Problem 8.8BE

Describe two separate and distinct ways to calculate goods available for sale.

calculate cost of goods sold, gross margin and ending inventory using i) FIFO and ii) Weighted - average

The selected inventory costing method impacts: Multiple Choice Gross profit and net income. Sales. The physical flow of goods. The quantity of inventory items on hand. The shipping terms to the buyer.

Which of the three methods of inventory costing— FIFO, LIFO, or weighted average cost—will in general yield an inventory cost most nearlyapproximating current replacement cost?

Cost of goods available for sale consist of two elements: beginning inventory and ending inventory (TRUE / FALSE)

Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except: Multiple Choice LIFO method. FIFO method. Specific identification method. Weighted average method. Retail method.

There are numerous inventory costing methods including FIFO, LIFO, and Weighted Average methods. Among those three methods, which one would you prefer the most and why? Please ensure that you provide a basis to support your reasoning.

Which of the following inventory costing methods is based on the actual cost of each particular unit of inventory? OA. weighted- average OB. specific identification O C. last-in, first-out OD. first-in, first-out

The accounting for inventory involves determining the correct unit counts comprising ending inventory, and then assigning a value to those units. Explain the 3 important types of Inventories