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10 ) Assuming no beginning inventory , what can be said about the tren d of inventory prices if cost of goods sold computed when inventory i s valued using the FIFO method exceeds cost of goods sold when inve ntory is valued using the LIFO method ? 11 ) Which method of inventory pricing best approximates specific ide ntification of the actual flow of costs and units in most manufacturing situations ? 12 ) All of the following costs should be charged against revenue in th e period in which costs are incurred EXCEPT for 13 ) In no case can “ market ” in the lower-of-cost-ormarket rule be more than 14 ) When the direct method is used to record inventory at market 15 ) An item of inventory purchased this period for $ 15.00 has been in correctly written down to its current replacement cost of $ 10.00 . It sel ls during the following period for $ 30.00 , its normal selling price , wit h disposal costs of $ 3.00 and normal profit of $ 12.00 . Which of the fo llowing statements is NOT true ? 16 ) The retail inventory method is based on the assumption that the 17 ) A major advantage of the retail inventory method is that it 18 ) In 2006 , Lucas Manufacturing signed a contract with a supplier to purchase raw materials in 2007 for $ 700,000 . Before the December 3 1 , 2006 balance sheet date , the market price for these materials droppe d to $ 510,000 . The journal entry to record this situation at December 31 , 2006 will result in a credit that should be reported 19 ) The cost of land typically includes the purchase price and all of th e following costs EXCEPT 20 ) Cotton Hotel Corporation recently purchased Holiday Hotel and t he land on which it is located with the plan to tear down the Holiday Hotel and build a new luxury hotel on the site . The cost of the Holida y Hotel should be 21 ) If a corporation purchases a lot and building and subsequently tear s down the building and uses the property as a parking lot , the proper accounting treatment of the cost of the building would depend on 22 ) The period of time during which interest must be capitalized ends when 23 ) Which of the following assets do NOT qualify for capitalization o f interest costs incurred during construction of the assets ?