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1) Which of the following inventory costing methods uses the cost of the oldest purchases to calculate the cost of goods sold? A) Specific identification

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1) Which of the following inventory costing methods uses the cost of the oldest purchases to calculate the cost of goods sold? A) Specific identification B) Weighted average C) Last-in, first-out D) First-in, first-out 2) Which of the following inventory costing methods uses the costs of the oldest purchases to calculate the value of the ending inventory? A) Specific identification B) Weighted average C) Last-in, first-out D) First-in, first-out 3) A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold a total of 150 units for $45 each from March 1 through December 31. What is the value of ending inventory on December 31, if the company uses the first-in, first-out (FIFO) inventory costing method? (Assume that the company uses a perpetual inventory system.) A) $1,250 B) $1,000 C) $2,250 D) $1,500 4) A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold a total of 150 units for $45 each from March 1 through December 31. If the company uses the last-in, first-out (LIFO) inventory costing method, what is the value of ending inventory on December 31? (Assume that the company uses a perpetual inventory system.) A) $2,250 B) $1,500 C) $1.000 D) $1,250 5) Which of the following inventory costing methods yields the lowest cost of goods sold during a period of rising inventory costs? A) Specific identification B) Weighted average C) Last-in, first-out D) First-in, first-out 6) Which of the following inventory costing methods yields the lowest net income during a period of rising inventory costs? A) Specific identification B) Weighted average C) Last-in, first-out D) First-in, first-out 7) Which of the following inventory valuation methods should be used for unique or high dollar items? A) First-in, first-out B) Last-in, first-out C) Weighted average D) Specific identification

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