Match the following terms with the appropriate definition. 1. How many times a company turns over (sells) its inventory in a period. Gross profit method?2. An inventory valuation method where each item in inventory is identified with a specific purchase and invoice. Net realizable value ?3. Market value used to apply the lower of cost or market rule to FIFO, weighted average, or specific identification inventory.Retail inventory method ?4. An inventory costing method that assumes the unit prices of the beginning inventory and of each purchase are weighted by the number of total units. Days' sales in inventory ?5. A method for estimating an ending inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail price. Weighted
average inventory method ?6. An estimate of the number of days one can sell from inventory if no new items are purchased .Interim statements ??7. An inventory valuation method that assumes that inventory items are sold in the order acquired. LIFO method ?8. Financial statements prepared for periods of less than one year. Specific identification method ?9. A method for estimating cost of ending inventory by applying the gross profit ratio to net sales.FIFO method ?10. An inventory valuation method that assumes costs for the most recent items purchased are sold first and charged to cost of goods sold. Inventory turnover ??
What will be an ideal response?
| 1. How many times a company turns over (sells) its inventory in a period. | Gross profit method | 9 |
| 2. An inventory valuation method where each item in inventory is identified with a specific purchase and invoice. | Net realizable value | 3 |
| 3. Market value used to apply the lower of cost or market rule to FIFO, weighted average, or specific identification inventory. | Retail inventory method | 5 |
| 4. An inventory costing method that assumes the unit prices of the beginning inventory and of each purchase are weighted by the number of total units. | Days' sales in inventory | 6 |
| 5. A method for estimating an ending inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail price. | Weighted average inventory method | 4 |
| 6. An estimate of the number of days one can sell from inventory if no new items are purchased . | Interim statements ? | 8 |
| 7. An inventory valuation method that assumes that inventory items are sold in the order acquired. | LIFO method | 10 |
| 8. Financial statements prepared for periods of less than one year. | Specific identification method | 2 |
| 9. A method for estimating cost of ending inventory by applying the gross profit ratio to net sales. | FIFO method | 7 |
| 10. An inventory valuation method that assumes costs for the most recent items purchased are sold first and charged to cost of goods sold. | Inventory turnover ? | 1 |
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