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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 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