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Match the Inventory Costing Method from Each Situation

Question 238

Matching

Match the inventory costing method from each situation

Premises:
The method that will tend to smooth out erratic changes in costs.
The method that will assign a value to inventory that approximates current cost.
The method that is used if each inventory item can be matched with a specific purchase and invoice.
The method that will cause the company to have the lowest income taxes.
The method that will cause the company to have the lowest cost of goods sold.
Responses:
WA(Weighted average)
SI(Specific identification)
FIFO(First in, first out)
LIFO(Last in, first out)

Correct Answer:

The method that will tend to smooth out erratic changes in costs.
The method that will assign a value to inventory that approximates current cost.
The method that is used if each inventory item can be matched with a specific purchase and invoice.
The method that will cause the company to have the lowest income taxes.
The method that will cause the company to have the lowest cost of goods sold.
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