60.000 7. East Corporation's computation of cost of goods sold is: 405.000 465.000 80.000 Beginning inventory Add: Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold The average days to sell inventory for East are 385.000 a. 56.9 days. b. 63.1 days. c. 66.4 days. d. 75.8 days 8. Which of the following costs are capitalized for self-constructed assets? a. Materials and labor only b. Labor and overhead only c. Materials and overhead only d. Materials, labor, and overhead 9. Lower-of-cost-or-net realizable value a. gives the lowest valuation if applied to the total inventory b. gives the lowest valuation if applied to major groups of inventory. c. gives the lowest valuation if applied to individual items of inventory d. must be applied to major groups for taxes. 10. Which of the following statements about involuntary conversions is false? a. An involuntary conversion may result from condemnation or fire. b. The gain or loss from an involuntary conversion is reported in other income and expense on the income statement c. No gain or loss from an involuntary conversion should not be recognized. d. None of these answer choices are false. 4