Exam Name M?LTIPLE CHOICE question. Choose the one alternative that best completes the statement or answers ) At a time of declining prices, which inventory cost flow method will result in the hig 1) C) FIFO D) Either weighted-average or Fio 2p When (including the effects of taxes, if any)? prices are rising, which method of inventory, if any, will result in the lowest relative net cash outflow 2)_ A) Weighted average IFO FIFO None of these; the choice of inventory methods does not affect cash flows. 3) Blake Company purchased two identical inventory items. The item purchased first cost $16.00, and the item purchased second cost $18.00. Blake sold one of the items for $24.00. Which of the following statements is true? 3) -- A) Gross margin will be higher if Blake uses LIFO rather than the FIFO inventory cost flow method. B) Cost of goods sold will be higher if Blake uses the FIFO rather than the weighted-average inventory cost w method. Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method D) The dollar amount assigned to ending inventory will be the same no matter which inventory cost flow method is used. 4) Anton Co. uses the perpetual inventory system and FIFO cost flow method. During the year, Anton purchased 400 units of inventory that cost $12.00 each and then purchased an additional 600 units of inventory that cost $16.00 each. If Anton sells 700 units of inventory, what is the amount of cost of goods sold? 4) A) S9,600 B) $8,400 C) $10,400 D) $11,200 The following information applies to the questions displayed below.] The inventory records for Radford Co. reflected the following: Beginning inventory @ May I irst purchase @ May 7 econd purchase @ May 17 100 units $4.00 00 units @ $4.40 500 units @ $4.60 100 units $4.80 00 units $7.80 Third purchase @ May 23 ales @ May 31 5) If the company uses the weighted-average inventory cost flow method, what is the average cost per unit (rounded) for May? 5) A) S5.12 B) $4.50 C)S6.34 D) $4.45