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?