1.

In periods of rising prices, use of LIFO rather than FIFO inventory method will have what effect on Cost of Goods Sold and Working Capital, respectively?

Select one:

a. Higher, Lower

b. Lower, Lower

c. Higher, Higher

d. Lower, Highe

2.

Given the following October 2017 data for the Paquette Company: Using the Retail method, the inventory cost estimate at 10/31/17 is:

Select one:

a. $2,900

b. $2,667

c. $3,278

d. $2,250

e. $4,000

3.

During 2017, Nehra Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: 2015 $60 understated 2016 $75 overstated Indicate the error in 2017 Net Income:

Select one:

a. $15 Understated

b. $15 Overstated

c. $75 Overstated

d. $75 Understated

e. $135 Overstated

4.

Use the following information for the month of May: Assuming that a Moving Average perpetual inventory system is used, what is approximate ending inventory?

Select one:

a. $1,880

b. $1,900

c. $1,963

d. $1,837

e. $1,920