Answer the following statements true (T) or false (F)
1) Weighted average cost per unit is determined by dividing the cost of goods available for sale by the number of units available.
2) The Organizer Store uses the weighted-average inventory costing method in a perpetual inventory system. The unit cost of the beginning inventory for inventory item X500 was $10 per unit. There was one unit in beginning inventory. The first purchase of the period has a unit cost of $12 per unit. Multiple units were purchased. The weighted average cost per unit is $11.
3) In a period of rising costs, the first-in, first-out (FIFO) method results in a lower cost of goods sold and a higher gross profit than the last-in, first-out (LIFO) method.
4) In a period of rising costs, the last-in, first-out (LIFO) method results in a lower cost of goods sold and a higher net income than the first-in, first-out (FIFO) method.
5) In a period of rising costs, the first-in, first-out (FIFO) method results in a higher cost of goods sold and a lower gross profit than the last-in, first-out (LIFO) method.
1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. FALSE
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