The inventory is added to the inventory records after three documents are reconciled. One of those documents is the

a.general journal.

b.sales receipt.

c.receiving report.

d.company check.

When using the periodic LIFO inventory cost method, which of the following statements is true?

a.The cost of goods sold is made up by averaging the end-of-period and beginning-of-period purchases.

b.The cost of inventory on hand is made up of the most recent purchases.

c.The physical count determines the inventory on hand.

d.The cost of goods sold is made up of the earlier purchases.

What is not considered an advantage of using the retail method of inventory costing?

a.The retail method uses specific costs to compute inventory.

b.The retail method provides inventory figures for preparing monthly and quarterly financial statements when the periodic system is used.

c.The retail method allows management to monitor operations more closely.

d.The retail method may be used as an aid in taking a physical inventory'

Which of the following is true regarding the perpetual LIFO inventory costing method?

a.The LIFO inventory costing method must be used with the weighted average cost method.

b.Costs are included in the cost of goods sold in the order in which units were purchased.

c.Unit costs for each item are averaged each time a purchase is made.

d.The cost of the units sold is the cost of the most recent purchases.

Gordon Company uses the retail method of inventory costing. The retail value of the ending inventory is $325,000. If the ratio of cost to retail price is 66%, what is the amount of the ending inventory to be reported on the financial statements?

a.$107,250

b.$214,500

c.$110,500

d.$325,000

The lower-of-cost-or-market method cannot be applied to

a.each item sold.

b.each item in the inventory.

c.inventory as a whole.

d.each major class or category of inventory.