Select the following sentences to the inventory cost flow method they describe Answers net income for the year will be overstated, net income for the year will be understated or net income for the year will not be affected 1 Merchandise was purchased FOB shipping point on the last day of the year The cost of the merchandise purchased was not included in ending inventory Select Net income for the current year will be overstated Net income for the current year will be understated Net income for the current year will not be affected Item 1 2 Merchandise was purchased FOB destination on the last day of the year The cost of the merchandise purchased was not included in ending inventory Select Net income for the current year will be overstated Net income for the current year will be understated Net income for the current year will not be affected Item 2 3 Merchandise held on consignment was included in the count of ending inventory Select Net income for the current year will be overstated Net income for the current year will be understated Net income for the current year will not be affected Item 3 4 A consignor included merchandise in the hands of the consignee in ending inventory Select Net income for the current year will be overstated Net income for the current year will be understated Net income for the current year will not be affected Item 4 5 Beginning inventory was understated due to an error in last year's inventory count Select Net income for the current year will be overstated Net income for the current year will be understated Net income for the current year will not be affected Item 5 6 Merchandise that was sold and shipped FOB destination on the last day of the year was not included in the seller's ending inventory Select Net income for the current year will be overstated Net income for the current year will be understated Net income for the current year will not be affected Item 6 7 Merchandise that was sold and shipped FOB shipping point on the last day of the year was not included in the seller's ending inventory Select Net income for the current year will be overstated Net income for the current year will be understated Net income for the current year will not be affected Item 7 8 Last year's ending inventory was recorded as $10,000 The actual inventory on hand the end of last year was $12,000

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Select the following sentences to the inventory cost flow method they describe. Answers: net income for the year will be overstated, net income for the

Select the following sentences to the inventory cost flow method they describe. Answers: net income for the year will be overstated, net income for the year will be understated or net income for the year will not be affected.

1. Merchandise was purchased FOB shipping point on the last day of the year. The cost of the merchandise purchased was not included in ending inventory.
2. Merchandise was purchased FOB destination on the last day of the year. The cost of the merchandise purchased was not included in ending inventory.
3. Merchandise held on consignment was included in the count of ending inventory.
4. A consignor included merchandise in the hands of the consignee in ending inventory.
5. Beginning inventory was understated due to an error in last year's inventory count.
6. Merchandise that was sold and shipped FOB destination on the last day of the year was not included in the seller's ending inventory..
7. Merchandise that was sold and shipped FOB shipping point on the last day of the year was not included in the seller's ending inventory.
8. Last year's ending inventory was recorded as $10,000. The actual inventory on hand the end of last year was $12,000.