Inventory cost flow assumptions address accounting issues when

a.different units of merchandise are acquired at the same unit cost during the period.

b.identical units of merchandise are acquired at different unit costs during the period.

c.an item is sold and it is necessary to determine its sales price.

d.an item is purchased and it is necessary to determine its cost.

Morgan Industries is comparing and contrasting its ending inventory value in terms of the three common inventory costing methods in order to help management determine the most appropriate method to use. The company determines three values, which are $96,000, $100,000, and $105,000. If management determines that $100,000 is the most appropriate value for its ending inventory, what inventory cost method has it most likely chosen?

a.Middle of cost or market method

b.LIFO inventory cost method

c.Weighted average inventory cost method

d.FIFO inventory cost method

Number of days' sales in inventory is computed as

a.Average Inventory divided by Average Daily Cost of Goods Sold.

b.Cost of Goods Sold divided by Average Inventory.

c.Sales divided by Average Daily Cost of Goods Sold.

d.Sales divided by 365 days

When a periodic inventory system is used

a.both revenue and cost of goods sold are recorded each time a sale is made.

b.only revenue is recorded each time a sale is made.

c.only the reduction of inventory is recorded each time a sale is made.

d.only the cost of goods sold is recorded each time a sale is made.

The cost method that will yield an ending inventory that is closer to current prices is the

a.weighted average inventory cost method.

b.specific identification inventory cost method.

c.LIFO inventory cost method.

d.FIFO inventory cost method.