1. How do you value inventory and cost of goods sold if you bought inventory at different prices? 2. What four cost flow methods are allowed under GAAP? Does a company need to disclose its method? 3. When is the specific identification method used? What types of companies might use it? 4. How do you calculate the weighted average price? 5. In periods of rising prices, which cost flow method results in the lowest net income, lowest taxes, and lowest ending inventory? 6. Which cost flow method is not allowed in many other countries? Why? 7. What is a LIFO reserve? Why is it required per GAAP? 8. If you change cost flow methods, what must be disclosed? 9. What determines ownership of inventory in transit at the end of the period? 10. When does legal title pass if shipping terms are FOB Destination? 11. When does legal title pass if shipping terms are FOB Shipping Point? 12. If we are a retailer that accepts goods on consignment, would we include those in our inventory? 13. Inventory should be recorded on the balance sheet at the lower of cost or market. What constitutes "market?" 14. The lower of cost or market is a departure from the cost principle due to conservatism. What does conservatism mean to an accountant? 15. Does a company generally want a high or low inventory turnover? Why