Inventory Flashcards

1
Q

Dollar Value Lifo- Price Index Formula

A

Price Index= Ending Inventory at current year cost/ Ending inventory at base year cost

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2
Q

In the period of rising prices, FIFO has the?

A
  • Highest ending inventory
  • Highest net income
  • Lowest cogs

*Perpetual & periodic systems are the same under Fifo

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