July 1 |
Beginning inventory |
20 units at $ 19 |
$ 380 |
7 |
Purchases |
70 units at $ 20 |
1,400 |
22 |
Purchases |
10 units at $ 22 |
220 $ 2,000 |
A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand . Using the average cost method , the value of ending inventory is Question 10
Inventory costing methods place primary reliance on assumptions about the flow of Question 11
Many companies use just-in-time inventory methods . Which of the following is not an advantage of this method ? Question 12
Which of the following statements is correct with respect to inventories ? Question 13
In periods of rising prices , which is an advantage of using the LIFO inventory costing method ? Question 14
Jenks Company developed the following information about its |
inventories in applying the lower of cost or market ( LCM ) basis in |
valuing inventories : |
Product |
Cost |
Market |
A |
$ 57,000 |
$ 60,000 |
B |
40,000 |
38,000 |
C |
80,000 |
81,000 |
If Jenks applies the LCM basis , the value of the inventory reported on the balance sheet would be Question 15