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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 27th. The goods are not expected to reach their destination
until January 6th.
$9,000 of goods received on consignment from Westwood Company
What is Howell‘s correct ending inventory balance at December 31,
2014?
Question 9