Which of the following is not an inventory costing method?


CHAPTER 6 1. Which of the following is NOT an inventory costing method? A) specific identification B) lower of cost or market
5. Baldwin, Inc. had the following balances and transactions during 2019: Beginning Merchandise Inventory as of January 1, 20

Answer

Chapter 6
1) Correct Option : B Lower Of Cost or Market
Lower of cost or market is the inventory valuation method, it is not an inventory costing method.
2) Correct Option A Specific Identification
Specific Identification method is based on actual cost of each particular unit of inventory.
3) Correct Option : C Last In, First Out
In last in first out it assume that unit which was purchased recently were sold firstly
consequently for costing of inventory it uses old purchase rate.
4) Closing Units = 500+550 -650
=400 Units
therefore value of inventory using first in first out method =400 units *33
=$13200
Therefore correct option is A

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