Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the cost flow that results in the lowest income ta

The cost flow that results in the lowest income taxes when prices are rising is...

80.2K

Verified Solution

Question

Accounting

image
The cost flow that results in the lowest income taxes when prices are rising is a average cost b. FIFo. c. LIFC. d. specific identification The data below are for Parrett Enterprises: Beginning inventory 150 units at $2.00 Purchase-August 375 units at $1.50 ober 150 units at $3.00 A periodkc inventory system is used: ending inventory is 330 units. What is the ending inventory under FIFO? a. $570 b. $743 C. $500 d. $720 3 Double-counting an inventory item at year end will result in a. understated tax liability b. overstated cost of goods sold c. overstated net income. d understated beginning inventory for the next period. A retail company has goods available for sale of $300,000 at retail and $210,000 at cost, and ending inventory of $80,000 at retail. What is the estimated cost of goods sold? a. $220,000 b. $154.000 C. $210,000 d $56.000 5. Which method might be used to estimate inventory costs when physical inventories are not taken? a. First-in, first-out b. Last-in, first-out c. Average cost method d. Gross profit method Acctng Principles ed 12 Ch 06 Quilz Inventories 6.A Bxisx \ 6BQue Printed: 10/10/18 6:25 PM

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students