2. Comparison of inventory methods. In the cases cited below, five different conditions are possible when X is compared with Y. These possibilities are as follows:

a. X equals Y d. X is equal to or greater than Y b. X is greater than Y e. X is equal to or less than Y c. X is less than Y

Instructions In the space provided show the relationship of X and Y for each of the following independent statements.

1. "Cost or market, whichever is lower," may be applied to (1) the inventory as a whole or to (2) categories of inventory items. Compare (X) the reported value of inventory when procedure (1) is used with (Y) the reported value of inventory when procedure (2) is used.

2. Prices have been rising steadily. Physical turnover of goods has occurred approxi-mately 4 times in the last year. Compare (X) the ending inventory computed by LIFO method with (Y) the same ending inventory computed by the moving average method.

3. The retail inventory method has been used by a store during its first year of operation. Compare (X) markdown cancellations with (Y) markdowns.

4. Prices have been rising steadily. At the beginning of the year a company adopted a new inventory method; the physical quantity of the ending inventory is the same as that of the beginning inventory. Compare (X) the reported value of inventory if LIFO was the new method with (Y) the reported value of inventory if FIFO was the new method.

5. Prices have been rising steadily. Physical turnover of goods has occurred five times in the last year. Compare (X) ending inventory using FIFO under periodic system (Y) ending inventory using FIFO under perpetual system.