The cost flow that results in the lowest income taxes when prices are rising is a average cost b. FIFo. c. LIFC. d. specific identification The data below are for Parrett Enterprises: Beginning inventory 150 units at $2.00 Purchase-August 375 units at $1.50 ober 150 units at $3.00 A periodkc inventory system is used: ending inventory is 330 units. What is the ending inventory under FIFO? a. $570 b. $743 C. $500 d. $720 3 Double-counting an inventory item at year end will result in a. understated tax liability b. overstated cost of goods sold c. overstated net income. d understated beginning inventory for the next period. A retail company has goods available for sale of $300,000 at retail and $210,000 at cost, and ending inventory of $80,000 at retail. What is the estimated cost of goods sold? a. $220,000 b. $154.000 C. $210,000 d $56.000 5. Which method might be used to estimate inventory costs when physical inventories are not taken? a. First-in, first-out b. Last-in, first-out c. Average cost method d. Gross profit method Acctng Principles ed 12 Ch 06 Quilz Inventories 6.A Bxisx \ 6BQue Printed: 10/10/18 6:25 PM