Multiple choice

1. Acceptable inventory costing methods include: 

A)LIFO method. 

B)FIFO method. 

C)Lower of cost or market method. 

D)A & B. 

E)A, B, & C. 

2. A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, 8 units were sold for $55 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?

A)$304 

B)$296 

C)$288 

D)$280 

E)$276 

3.A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO perpetual inventory method, what is the cost of the 12 units that were sold? 

A)$120. 

B)$124. 

C)$128. 

D)$130. 

E)$140 

4.Generally accepted accounting principles require that the inventory of a company be reported at: 

A)Market value. 

B)Historical Cost. 

C)Lower of cost or market. 

D)Replacement cost. 

E)Retail value.