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 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 2 nd $ 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