The inventory cost flow assumption that is least likely to match the physical flow of inventory for most companies is:

A) FIFO.

B) LIFO.

C) Weighted-average.

D) Specific identification.

Answer: LIFO.

Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming FIFO would be:

A) $1,730.

B) $1,700.

C) $1,720.

D) $1,710.

Answer: $1,700.

Dunbar sold 700 units of inventory during the month. Ending inventory assuming LIFO would be:

A) $500.

B) $490.

C) $470.

D) $480.

Answer: $480.

The inventory cost flow assumption that results in a random mixture of goods

The inventory cost flow assumption that results in a random mixture of goods being included in the balance of inventory and cost of goods sold is:

A) FIFO.

B) LIFO.

C) Weighted-average.

D) Lower of cost and net realizable value.

Answer: Weighted-average.

The inventory costing method that matches each unit of inventory with its actual cost is referred to as the ________ method.

A) Weighted-average.

B) Specific identification.

C) Actual cost.

D) Matching unit.

Answer: Specific identification

The inventory cost flow assumption that generally best matches the physical flow of inventory is:

A) FIFO.

B) LIFO.

C) Weighted-average.

D) Lower of cost and net realizable value.

Answer: FIFO.