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 determined that this amount included the following : $ 168,000 in inventory purchases made by Howell shipped from the seller 12 / 27 / 14 terms FOB destination , but not due to be received until January 2nd $ 111,000 in goods sold by Howell with terms FOB destination on December 27 th . The goods are not expected to reach their destination until January 6 th . $ 9,000 of goods received on consignment from Westwood Company
What is Howell ‘ s correct ending inventory balance at December 31 , 2014 ? Question 9