Reference no: EM132459425

Problem 1. The equation for cost of goods available for sale?

a. Beginning Inventory-Purchases + Purchase Returns-Purchase Discounts+ Freight-in Charges.

b. Beginning Inventory +Purchases - Purchase Returns-Purchase Discounts+ Freight-in Charges.

c. Beginning Inventory+Purchase-Purchase Returns-Purchase Discounts+ Freight-in Charges- Fright-out-charges-Ending Inventory.

d. Beginning Inventory +Purchase-Purchase Returns-Purchase Discounts+ Freight-in Charges-Ending Inventory.

Problem 2. Which of the following companies are likely to use the specific identification method to value its inventory?

Jewelry Retailer                   Oil Refinery                    Car Manufacturing

a. No                                  No                                   Yes

b. Yes                                 No                                    Yes

c. Yes                                 Yes                                    No

d. No                                   No                                       No