When inventory costs are declining, which of the following inventory costing method will result in the lowest ending merchandise inventory?
A) first-in, first-out
B) last-in, first-out
C) weighted-average
D) specific identification
A) first-in, first-out
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In 2012, Blanton Company bought equipment with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years. It was depreciated by the straight-line method for 4 years. Due to obsolescence, it was determined at the beginning of 2016 that the useful life should be shortened by 3 years and the residual value changed to zero. The depreciation expense for 2016 is
a. $11,636 b. $16,000 c. $11,000 d. $8,000
A retail firm would normally use an inventory account titled
A) finished goods inventory B) merchandise inventory C) goods in process inventory D) raw materials inventory
Which of the following is linked to what people think about at work that dissatisfies them (e.g., supervision, pay, company policies, and the working conditions)?
A. need for power B. safety C. hygienes D. motivators
The cash ratio:
a. is cash equivalents plus marketable securities divided by current liabilities. b. compares cash to accounts payable. c. is not useful as a measure of short-term liquidity. d. is not recommended for use with speculative companies.