Question

13 Which of e fo y o ory with relatively ma nmber of uniqe per o LIFO e Average d Specific ideneticatio None of the aove The inventory date for an for oveber, 209 a Now 1 14 ory Sold 10 Purchased 7Sold 20 units s0un s0 uns at 523 per unit s0 units at $22 per unit so Purchased Using the perpetual system, coting by last-in first out method, what is the cost of merchandise inventory of 30units on November 30 a $630 b 5630 S620 d. $630 e None of the above 15. During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is a. FIFO b. LIFO CAverage d Specific identification e. None of the above 16. If the cost of an item of inventory is $65 and the current replace cost is $60, the amount included in the ending inventory according to the LCM rule will be a $s b. S60 c $65 d. $125 e. None of the above

Answer 1

13. d. Specific Identification.

14. d. $ 630

15. b. LIFO

16. b. $ 60

According to the lower of cost or market rule, the cost of inventory is recorded at whichever cost is lower – the original cost or its current market price.The current market price is the current replacement cost of the inventory, as long as the market price does not exceed net realizable value.