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6. Explain clearly why FIFO produces higher income during a period of inflation. Daring times at inflation, FIFO tends to increase net income out time by lowering the cost 7. The inventory valuation method that has the advantages of assigning an amount to inventory on the balance sheet that approximates it's current cost, and also mimics the actual flow of goods for most businespes is: A. FIFO. B. Weighted average. C. LIFO. D. Specific identification. E. All of these 8. For 1 mark, which of the following statements is true? Whether prices are rising or falling, FIFO always will yield the highest gross profit and net income. In a period of rising prices, FIFO usually gives a lower taxable income. During inflation FIFO satisfies the matching principle better than LIFO. During inflation the value of inventory using LIFO is often less than the inventory's replacement cost. Errors in the period-end Inventory balance only affect the current period's records and financial statements 9. LIFO and FIFO are two methods used to determine CGS and ending inventory. a. Which of these two methods best meets the matching principle during a period of rising prices? Answer: mumu b. Clearly explain how the method you have cited in your answer to "a' above best meets the matching principle.DJ All of the above statements are true. E) None of the above statements are true 7. An inventory decision rule states "when the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered." Which of the following statements is true? A) One hundred is the reorder point, and 14 is the order quantity. B) Fourteen is the reorder point, and 100 is the order quantity. C) The number 100 is a function of demand during lead time. D) Fourteen is the safety stock, and 100 is the reorder point. E) None of the above is true. 8. In order to control the likelihood of a stockout due to the variability of demand (demand is not constant) during lead time, inventory managers need additional stocks, which is A) EOQ B) safety stock C) back order D) reorder point E) JIT 9. The two most basic inventory questions answered by the typical inventory model are A) timing and cost of orders B) quantity and cost of orders C) timing and quantity of orders D) order quantity and service level E) ordering cost and carrying cost 0. Which of the followings helps determine "Right Quantity"? A) reorder point B) EOQ C) JIT D) safety stock E) none of the above In the example of FedEx operation hub location, which of the following pairs is more relevant to it service quality rather than to its cost?Easy Peasy Company has the following information Balance per Books, 3/31 5,320,000.00 Receipt per ledger 6,500,000.00 Disbursements per ledger 8,250,000.00 Balance per bank statement, 3/31 4,890,000.00 Bank Credits 7,800,000.00 Bank Debits 6,890,000.00 Deposit in Transit - March 2,475,000.00 Deposit in Transit - April 1,950,000.00 Oustanding Checks - March 800,000.00 Oustanding Checks - April 2,160,000.00 Debit Memo - March 5,000.00 Debit Memo - April 25,000.00 Credit Memo - March 1,250,000.00 Credit Memo - April 1,225,000.00 Error made by the Easy Peasy, double recorded dibursements amounting to P20,000.00 Error made by the bank, a deposit amounting to P800,000.00 made by Issy Pisy was credited to Easy Peasy. 1. Preprere a four column proof of cash. 2. Prepare adjusting entries for April 30.Question 2 Not yet answered Points out of 1.00. " Flag question Consider a concave mirror with focal length f, and an object at a distance 3fin front of it. Which of the following statements is true? Select one: a. The image is smaller and inverted. O b. The image is larger and inverted. O c. The image is the same size and inverted. d. The image is larger and upright.SP'18 ACCO 211-90 / Chapter 8 *Problem 8-5 Some of the information found on a detail inventory card for Buffalo Inc. for the first month of operations Is as follows. Received Issued, Balance, Date No. of Units Unit Cost No. of Units No. of Units January 2 1,500 $4.56 1,500 7 1,000 500 10 900 4.86 1,400 13 800 600 18 1,300 5.02 600 1,300 20 1,100 200 23 1,600 5.17 1,800 26 1,100 700 28 1,900 5.32 2,600 31 1,600 1,000 Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Average-cost per unit From these data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average-cost. (Round final answers to 0 decimal places, e.g. 6,548.) (1) (2) (3) FIFO LIFO Average-cost Ending Inventory $ If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, would the amounts shown as ending inventory in (1), (2), and (3) above be the same? What amount would be shown as ending inventory? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.) (1) (2) (3) FIFO LIFO Average-cost Would amount be same Ending Inventory S Question Attempts: 0 of 3 used