Question Details

Rudolf Diesel Company's inventory records 



1.		Inventory items on an assembly line in various stages of production are classified as
a.	Finished goods.
b.	Work in process.
c.	Raw materials.
d.	Merchandise inventory.

	2.	The cost flow method that often parallels the actual physical flow of merchandise is the
a.	FIFO method.
b.	specific identification method.
c.	average-cost method.
d.	gross profit method.

	3.	Rudolf Diesel Company's inventory records show the following data:
	Units	Unit Cost
Inventory, January 1	10,000	$9.00
Purchases:	June 18	9,000	8.00
	November 8	6,000	7.00
A physical inventory on December 31 shows 8,000 units on hand. Under the FIFO method, the December 31 inventory is
a.	$58,000.
b.	$56,000.
c.	$64,000.
d.	$72,000.

4.	In a period of falling prices, the cost flow method that results in the lowest income taxes is the
a.	FIFO method.
b.	specific identification method.
c.	average-cost method.
d.	gross profit method.

5.	In a period of rising prices, FIFO will have
a.	lower net income than average-cost.
b.	lower cost of goods sold than average-cost.
c.	lower income tax expense than average-cost.
d.	lower net purchases than average-cost.




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help