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Chapter 6 Quiz
Question 1
Raw materials inventories are the goods that a manufacturing
company has completed and are ready to be sold to customers.
Question 2
Goods held on consignment should be included in the consignor‘s
ending inventory
Question 3
If a company has no beginning inventory and the unit cost of
inventory items does not change during the year, the value
assigned to the ending inventory will be the same under LIFO and
average cost flow assumptions
Question 4
The LIFO method is rarely used because most companies do not
sell the last goods they purchase first.
Question 5
The FIFO reserve is a required disclosure for companies that use
FIFO.
Question 6
Manufactured inventory that has begun the production process
but is not yet completed is
Question 7
Which of the following should not be included in the physical
inventory of a company?
Question 8
At December 31, 2014 Howell Company‘s inventory records
indicated a balance of $858,000. Upon further investigation it was