Select the correct answer in the following statement(s)

1. Merchandise inventory includes all goods owned by a company except which of the following

1. Goods in transit

2. Damaged goods that maybe saleable

3. Goods on consignment

4. All of the above

Answer questions 2-4 based on the following methods

I.FIFO II. Weighted Average III. Specific Identification

1. Which of the methods assign costs to inventory in order of being purchased first?

1. I

2. II

3. III

4. I & III

2. Which of the methods require calculating the weighted average at cost to assig costs to inventory?

1. I

2. II

3. III

4. None of the above

3. Which of the methods is used to identify each item and sale it independently in the inventory

1. I

2. II

3. III

4. Both I & III

4. Which of the following methods uses income statement relationship to calculate the dollar value of sold goods?

1. Gross profit method

2. Retail inventory method

3. Unit of product method

4. Half year convention method