1.A company has 8,200 in net sales, $1,100 in gross profit, $2,500 in ending inventory and $2,000 in beginning inventory. The company's cost of goods sold is:
2. Assigning LCM to the items that make up the inventory at the end of the accounting period is an application of which of the following concepts.
a. Materiality,
b Conservatism,
c Reliability,
d Full disclosure
3. Net sales minus estimated gross profit yields the estimated?
a. ending inventory
b. beginning inventory
c. gross profit
d. cost of goods.
4.In order to pay the least income tax possible in periods of rising inventory costs, the company should use which of the following inventory costing methods.
a. FILO
b. LIFO
c. Average cost
d. income statement after gross profit
5. A method of valuing inventory based on the assumption that the oldest goods will be sold first is.
a. LIFO method
b. average cost method
c. specific cost method
d. FIFO method.