Question

1. Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer? Raw materials. Work-in-process. Finished goods. d. Supplies. b. 2. Where should raw materials be classified on the statement of financial position? Prepaid expenses. b. Inventory. Equipment. Not on the statement of financial position. d. Which of the following accounts is not reported in inventory? a. Raw materials. b. Equipment. c. Finished goods. d. Supplies 4. In a period of rising prices, the inventory method which tends to give the highest reported inventory is FIFO. moving average. specific identification. d. weighted average. b. Which inventory costing method most closely approximates current cost for ending inventory? Average FIFO LIFO Specific identification soo

Answer 1

1)

The correct option is C) Finished Goods

Supporting explanations:

Manufacturer is the person who purchases the raw materials in order to manufacture the finished or semi finished goods and Retailer is the person who purchases the finished goods and sells the finished goods to the customers. Therefore, retailer carries the finished goods like the Manufacture who carries the raw materials.

Hence, the correct option is Finished Goods.

2)

The correct answer is B) Inventory

Supporting explanations:

Raw materials are firstly put it to the production process and such materials are called work-in process inventory and after the completion of the production process, the output is called the Finished Goods Inventory.

Raw materials, work-in process inventory and finished goods are part of Inventory while reporting in the financial statements

that is Balance Sheet under the current assets section.

Therefore, the correct option is Inventory.

3)

The correct answer is b) Equipment

Supporting explanations:

Raw materials, supplies, finished goods are part of Inventory which is classified as Current Assets but the Equipment is part of Fixed assets, hence, equipment is not reported under Inventory as Equipment is reported under Plant, Property and Equipment (Fixed assets) section in the balance sheet.

Note: As per HOMEWORKLIB RULES, the first question should be answered but i have answered the first three questions, hence, please post the remaining questions separately.