6. Costing Techniques

Inventory Valuation — Quiz

Test your understanding of inventory valuation with 5 practice questions.

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Practice Questions

Question 1

Under IFRS, which inventory valuation method is prohibited?

Question 2

In a period of rising prices, which inventory valuation method typically results in the lowest reported net income?

Question 3

If a company reports a FIFO ending inventory of £200,000 and a LIFO ending inventory of £150,000, what is the LIFO reserve?

Question 4

Given beginning inventory of 120 units at £7 each and a purchase of 180 units at £9 each, what is the weighted average cost per unit (to two decimal places)?

Question 5

Using the weighted average cost from the previous question, what is the value of ending inventory if 200 units are sold?