MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Weighted Average Profits Method

In the period...

Question

In the periods of rising costs, which inventory cost flow method results in a higher cost of goods sold, a lower ending inventory, and a smaller net income?

Open in App

Solution

(A) Specific unit

(B) Weighted average

(C) FIFO

(D) LIFO

Answer:(D) LIFO

Explanation: The last in, first out (LIFO) is a technique used to represent inventory. Under LIFO, the expenses of the latest items bought (or created) are the first ones to be expensed.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Inventory Turnover Ratio 5 times; Cost of Revenue from Operations (Cost of Goods Sold) ₹ 18,90,000. Calculate Opening Inventory and Closing Inventory if Inventory at the end is 2.5 times more than that in the beginning.

Q. ₹ 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold).

Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories

Q. ₹2,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold), during the year. If Inventory Turnover Ratio is 8 times, calculate inventories at the end of the year. Inventories at the end is 1.5 times that of in the beginning.

Q. Inventory turnover ratio

=

Cost of goods sold

\div

Cost of ______________ held during the period.

Q. A firm has inventory turnover of 6 and cost of goods sold is Rs. 7,50,000. With better inventory management, the inventory turnover is increased to 10. This would result in:

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Valuation of Goodwill

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Weighted Average Profits Method

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon