CHAPTER 6 Inventory Costing and Valuation 5. Under the moving weighted average costing method: a. Costs are assigned to inventory as goods are sold. b. Average cost per unit is calculated by dividing total cost of goods available by units on hand and is up- dated at the time of each purchase. c. Average cost is calculated at the end of the reporting period. d. None of the above. sids 6. Which of the following is an example of an inventory item that would best suit the specific identification inventory method: a. Pile of bird's-eye gravel at the local gravel pit VEL b. Cartons of specialty ice cream produced by a local high-end food manufacturer c. Custom-made guitars with unique features produced for established musicians boxem is oise d. Individual 2x4 pine wood boards at the local lumber yard 926909r 7. Which accounting principle requires that a company use the same accounting methods period after period? nist a. Revenue recognition principle A apsievs b. Lower of cost and net realizable value principle c. Business entity principle d. Consistency principle b. Writing inventory down to the lower amount of the inventory cost and the amount expected to be received upon sale of the goods or is bevisos am c. Writing inventory up to the higher of inventory cost and the current market price d. None of the above. 9. If inventory is understated at the end of the accounting period, the effect will be which of the following: a. Cost of goods sold will be overstated and profit will be understated b. Cost of goods sold will be understated and profit will be overstated yasqmoo of side c. Cost of goods sold will be overstated and profit will be overstated d. Cost of goods sold will be understated and profit will d blea aboop to ealbris be understated als :90 9008 19v Vjoinevni baile 10. Marshall Inc. has $500,000 in cost of goods sold and an average inventory balance of $210,000 for fiscal 2020. Inventory turnover for 2020 is: alquiey vica. 1.50 times per year Tega na eulaveripid nerb. 0.42 times per year Eve ating laro 203 tinu vd nens bins viol vd 19V6 c. 2.20 times per year sd vam nuoma na latest Jash 8. The lower of cost and net realizable value principle involves: a. Recording the revenue on sale of merchandise inven- tory at the market price of an inventory item silse d. 2.38 times per year sonant er no 229285 neus to nolalbeb erit toeqmi bluow met ont sorts