The LIFO method is rarely used because most companies do not sell
the last goods they purchase first.
Question 5
The FIFO reserve is a required disclosure for companies that use
FIFO.
Question 6
Manufactured inventory that has begun the production process but is
not yet completed is
Question 7
Which of the following should not be included in the physical
inventory of a company?
Question 8
At December 31, 2014 Howell Company‘s inventory records indicated
a balance of $858,000. Upon further investigation it was determined
that this amount included the following:
$168,000 in inventory purchases made by Howell shipped from the
seller 12/27/14 terms FOB destination, but not due to be received until
January 2nd
$111,000 in goods sold by Howell with terms FOB destination on
December 27 th . The goods are not expected to reach their destination
until January 6 th .
$9,000 of goods received on consignment from Westwood Company
What is Howell‘s correct ending inventory balance at December 31,
2014?
Question 9
Noise Makers Inc has the following inventory data:
July 1
Beginning inventory
20 units at $19
$ 380
7
Purchases
70 units at $20 1,400
22
Purchases
10 units at $22
220