Name two methods other than the moving-average cost method that could have been used in pricing the issue transactions above.

Multiple Choice; Comparison of Inventory Methods (CPA) The Berg Corporation began business on Janyary 1, 19-4. Information about its inventories under different valuation methods is shown below. Using this information, you are to choose the phrase that best answers each of the following questions.

INVENTORY LOWER OF LIFO COST FIFO COST MARKET COST OR MARKET Dec. 31, 19-4 $10,200 $10,000 $ 9,600 $ 8,900 Dec. 31, 19_5 9,100 9,000 8,800 8,500 Dec. 31, 19_6 10,300 11,000 12,000 10,900 1. The inventory basis that would show the highest net income for 19_4 is:

a. LIFO cost

c. Market

b. FIFO cost

d. Lower of cost or market 2. The inventory basis that would show the heghest net income for 19_5 is:

a. LIFO cost

c. Market

b. FIFO cost

d. Lower of cost or market 3. The inventory basis that would show the lowest net income for the three years combined 1s:

a. LIFO cost

c. Market

b. FIFO cost

d. Lower of cost or market 4. For the year 19_5, how much higher or lower would profits be on the FIFO cost basis than on the lower-of-cost-or-market basis?

a. $400 higher

e. $1,000 higher

b. $400 lower

f. $1,000 lower

c. $600 higher g. $1,400 higher

d. $600 lower h. $1,400 lower 5. On the basis of the information given, it appears that the movement of prices for items in the inventory was:

a. Up in 19_4 and down in 19_6

b. Up in both 19_4 and 19_6

c. Down in 19_4 and up in 19_6

d. Down in both 19_4 and 19_6 lop5