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RUE/FALSE. Write T if the statement is true and F' if the statement is false. 21) 21) First Street Merchandisers has total cost of goods sold of $54,500, total beginning inventory of $18,500, and total ending inventory of $22,100. Cost of goods available for sale is $73,000. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 2) 22) Which of the following statements regarding LIFO is incorrect? A) Ending inventory comes from the most recent purchases. B) The last units in are assumed to be the first units sold C) This method leaves the oldest costs in ending inventory D) LIFO is an assumption about how costs flow. 23) Which of the following inventory costing methods uses the costs of the oldest purchases to calculate 23) the value of the ending inventory? A) first-in, first-out C) weighted-average B) specific identification D) last-in, first-out 24) Which of the following inventory costing methods is based on the actual cost of each particular unit 24) of inventory? A) weighted-average C) first-in, first-out B) last-in, first-out D) specific identification 25) During a period of declining inventory costs, which of the following inventory costing methods 25) should be used by a company that intends to minimize its income tax expenses? A) specific identification C) weighted-average B) first-in, first-out D) last-in, first-out

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