ACCT 201 chapter 6

When is a physical inventory usually taken?

At the end of the company's fiscal year.

Inventory costing methods place primary reliance on assumptions about the flow of

Costs

Which of the following should not be included in the physical inventory of a company?

Goods held on consignment from another company.

Which of the following is an inventory costing method?

Specific identification

The factor which determines whether or not goods should be included in a physical count of inventory is

legal title

The selection of an appropriate inventory cost flow assumption for an individual company is made by

management.

Goods held on consignment are

never owned by the consignee.

The LIFO inventory method assumes that the cost of the latest units purchased are

the first to be allocated to cost of goods sold.

Selection of an inventory costing method by management does not usually depend on

the fiscal year end.

If goods in transit are shipped FOB destination

the seller has legal title to the goods until they are delivered.