1. Ferrari makes custom-built sports cars tailored to each individual buyer's needs and requests. Which inventory cost method would be the most accurate under these circumstances?

a. FIFO

b. LIFO

c. The Average Cost Method

d. Specific Identification

2. In 2017 the accountant for Johnson corporation mistakenly understates cost of goods sold by $9,000. What will be the effect of this error on Total Assets for 2018? Assume a tax rate of 0%.

a. 2018 total assets will be correct

b. 2018 total assets will be overstated by $9,000

c. The answer cannot be determined without knowing how much ending inventory was

d. 2018 total assets will be understated by $9,000