1. Target purchases sweatshirts for $25/each. Target believes that the sweatshirts will sell for $40/each. The sweatshirts should be valued at _____ on Target's Balance Sheet.

	$25/each
	$40/each

2. Both cost of goods sold and ending inventory are valued at ACTUAL costs under the _____ cost flow assumption.

	Weighted Average
	LIFO
	Specific Identification
	FIFO

3. Inventory in transit is never included in a company's inventory count.

	True
	False

4. A company can use LIFO to value its inventory even if the company's actual inventory flows are closer to FIFO.

	True
	False

5. A company will experience a LIFO liquidation if they use the LIFO cost flow assumption and purchase more units of inventory than they sell during the fiscal period.

	True
	False