We noted the following information concerning merchandise inventory:

Beginning Inventory	20 @ $10
Purchase 1	80 @ $20
Purchase 2	100 @ $30
Purchase 3	50 @ $40
Units sold	210

Use this information to answer questions 21 23

21. Under the LIFO (last-in, first-out) inventory method, what is Cost of Goods Sold?

$600

$1600

$5200

$6200

22. Under the FIFO (first-in, first-out) inventory method, what is the value of our ending inventory?

$600

$1600

$5200

$6200

23. Under the Weighted Average inventory method, what is the value of our ending inventory?

$1088

$1000

$5800

$5710

24. Which statement is true concerning the LCM (lower cost or market) application to inventory?

Failure to apply may violate the cost principle

It can be applied at the unit or sub-category levels

Cost of Goods Sold may need to be adjusted

All of the above

25. When examining internal controls over E-commerce, which control category is most important:

Records

Insurance and Bonds

Independent Verification

Technological