learning objective 6 2 1 ending inventory is calculated by multiplying the number of 4306721

learning objective 6 2 1 ending inventory is calculated by multiplying the number of 4306721

Learning Objective 6-2

1) Ending inventory is calculated by multiplying the number of units on hand with the unit cost.

2) Ending inventory equals the cost of goods available for sale less beginning inventory.

3) Under the last-in, first-out (LIFO) method, the cost of goods sold is based on the oldest purchases.

4) When a company uses the first-in, first-out (FIFO) method, the cost of goods sold correlates to the most recently purchased goods, and the value of ending inventory correlates to the oldest goods in stock.

5) When a company uses the last-in, first-out (LIFO) method, the cost of goods sold correlates to the most recently purchased goods, and the ending inventory correlates to the oldest goods in stock.

6) The specific identification method of inventory costing is recommended when a business deals in unique and high-priced inventory items.

7) The total cost spent on inventory that was available to be sold during a period is called the cost of goods sold.

8) 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

9) Which of the following inventory costing methods uses the cost of the oldest purchases to calculate the cost of goods sold?

A) specific identification

B) weighted-average

C) last-in, first-out

D) first-in, first-out

10) Which of the following inventory costing methods uses the costs of the oldest purchases to calculate the value of the ending inventory?

A) specific identification

B) weighted-average

C) last-in, first-out

D) first-in, first-out

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