5) Which of the following inventory costing methods yields the highest income when costs are rising...
5) Which of the following inventory costing methods yields the highest income when costs are rising during the accounting period?
A) Specific-unit-cost
B) Average-cost
C) Last-In, First-Out
D) First-In, First-Out
Which of the following inventory costing methods yields the lowest income when costs are rising during the accounting period?
A) Specific-unit-cost
B) Average-cost
C) Last-In, First-Out
D) First-In, First-Out
Homework Answers
5)
First in First out method yields the highest income when costs are rising
This is because under FIFO, the inventory would consist of the most recent purchases which would have been acquired at higher prices. This would lead to a higher ending inventory valuation and a lower cost of goods sold. This in turns increases the net income
6)
Last in First out method yields the lowest income when costs are rising
This is because under LIFO ,the inventory would consist of the first most purchases which would have been acquired at the lowest prices. This would lead to a low value of ending inventory and a higher cost of goods sold. This in turns decreases the net income
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5) Which of the following inventory costing methods yields the
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During a period of regularly rising purchase costs, the method yields the highest reported cost of goods sold amount on the income statement. During a period of regularly rising purchase costs, the method yields the lowest income tax expense. select During a period of steadily rising costs, the method results in the highest amount of inventory reported on the balance sheet. The prescribes that a company use the same accounting methods period after period so that financial statements are comparable...
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CHAPTER 6 1. Which of the following is NOT an inventory costing method? A) specific identification B) lower of cost or market C) last-in, first-out D) first-in, first-out 2. Which of the following inventory costing methods is based on the actual cost of each particular unit of inventory? A) specific identification B) weighted average C) last-in, first-out D) first-in, first-out 3. Which of the following inventory costing methods uses the cost of the oldest purchases to compute the cost of...
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During a period of regularly rising purchase costs, the method yields the highest reported cost of goods sold amount on the income statement. During a period of regularly rising purchase costs, the method yields the lowest income tax expense. select During a period of steadily rising costs, the method results in the highest amount of inventory reported on the balance sheet. The prescribes that a company use the same accounting methods period after period so that financial statements are comparable...
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O AutoSave OCH H File Home Insert Design second exam. Layout References Mailings Zakari, Salu Review View 2 - Help Grammarly 26) 26) Which of the following inventory costing methods yields the highest net income during a period of rising inventory costs? A) last-in, first-out B) first-in, first-out C) weighted average D) specific identification 27) - 27) Which of the following inventory costing methods yields the lowest net income during a period of rising inventory costs? A) specific identification B)...
AutoSave Off second exam.. Zakari, SaluS File Home Insert Design Layout References Mailings Review View Help Grammarly L 6 5 4- 3- 2 21) Which of the following inventory valuation methods should be used for undque items? A) specific identfication C) weighted-average 21) B) last-in, first-out D) first-in, first-out 22) Which of the following inventory costing methods uses the cost of the oldest purchases to compute the cost of goods sold? A) last-in, first-out first-in, first-out 22) B) specific identification...
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