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The Use of the Fifo Method of Inventory Valuation

Question 74
Multiple Choice

The use of the FIFO method of inventory valuation A) results in a matching of current inventory costs against sales revenue. B) results in the most current costs in ending inventory. C) results in a lowest reported net income in a time of rising prices. D) results in a highest reported net income in a time of falling prices.

Related questions
Q 75
The use of the LIFO method of inventory valuation A) assigns the cost of the most recent purchases to the ending inventory. B) results in the same valuation as the specific identification method in a time of rising prices. C) results in the lowest reported net income in a time of rising prices. D) results in the highest reported net income in a time of rising prices.
Q 76
The firm had a beginning inventory of 50 units with a unit cost of $10.Purchases during the year were as follows: March-50 units with a unit cost of $12;July-60 units with a unit cost of $15.If the average cost method is used,the value of the ending inventory of 45 units is A) $675. B) $563. C) $450. D) $555.
Q 77
Which of the following is NOT a way to apply the lower of cost or market rule? A) by item B) by size C) in total D) by group
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