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