ACC 304 All Assignments ACC 304 All Assignments | Page 82

S38. Valuation of inventories requires the determination of all of the
following except
a. the costs to be included in inventory.
b. the physical goods to be included in inventory.
c. the cost of goods held on consign-ment from other companies.
d. the cost flow assumption to be adopted.
P39. The accountant for the Pryor Sales Company is preparing the
income statement for 2012 and the balance sheet at December 31,
2012. Pryor uses the periodic inventory system. The January 1, 2012
merchandise inventory balance will appear
a. only as an asset on the balance sheet.
b. only in the cost of goods sold section of the income statement.