ACC 556 STR Course Great Wisdom / tutorialrank.com ACC 556 STR Course Great Wisdom / tutorialrank.com | Page 19

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 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