CHAPTER 6 1. Which of the following is NOT an inventory costing method? A) specific identification B) lower of cost or market C) last-in, first-out D) first-in, first-out 2. Which of the following inventory costing methods is based on the actual cost of each particular unit of inventory? A) specific identification B) weighted average C) last-in, first-out D) first-in, first-out 3. Which of the following inventory costing methods uses the cost of the oldest purchases to compute the cost of goods sold? A) specific identification B) weighted average C) last-in, first-out D) first-in, first-out 4. A company purchased 500 units for $30 each on January 31. It purchased 550 units for $33 each on February 28. It sold a total of 650 units for $45 each from March 1 through December 31. What is the cost of ending inventory on December 31 if the company uses the first-in, first-out (FIFO) inventory costing method ? A) $13,200 B) $10,200 C) $12,000 D) $1,800
5. Baldwin, Inc. had the following balances and transactions during 2019: Beginning Merchandise Inventory as of January 1, 2019 March 10 125 units at $81 Sold 50 units Purchased 225 units at $86 Sold 175 units June 10 October 30 What would be reported as Cost of Goods Sold on the income statement for the year ending December 31, 2019 if the perpetual inventory system and the first-in, first-out inventory costing method are used? A) $10,125 B) $14,675 C) $29,475 D) $18 725
Option : B Lower Of Cost or Market
cost or market is the inventory valuation method, it is not an
inventory costing method.
Option A Specific Identification
Identification method is based on actual cost of each particular
unit of inventory.
Option : C Last In, First Out
|In last in
first out it assume that unit which was purchased recently were
consequently for costing of inventory it uses old purchase
Units = 500+550 -650
value of inventory using first in first out method =400 units
correct option is A