alleryStart learning →FIFO inventory is $5,250 and LIFO inventory $4,500. LIFO reserve?
- $9,750
- $5,250
- $4,500
- $750
Show answer and solution
Correct answer: D. $750
The LIFO reserve is the FIFO value minus the LIFO value, 5,250 minus 4,500, which is 750.
CA Inter Cost Accounting — practice questions — page 3
Explore 75 free Cost Accounting questions in CA Inter Cost and Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.
Practise Cost Accounting with Quill →Cost Accounting questions and exercises with answers
Showing questions 61–75 of 75.
FIFO inventory is $5,250 and LIFO inventory $4,500. LIFO reserve?Read the answer and worked solution →In rising prices, FIFO shows what versus LIFO?Read the answer and worked solution →Which standards banned LIFO, so more companies returned to FIFO?Read the answer and worked solution →Specific identification fails when goods are what?Read the answer and worked solution →Which expense is included in cost of goods sold for a manufacturer?Read the answer and worked solution →Goods whose market value fell may be valued at what?Read the answer and worked solution →Standard cost variances at period end are split between COGS and what?Read the answer and worked solution →Across a business's life, FIFO, average cost and LIFO change which item?Read the answer and worked solution →Throughput accounting includes which costs in cost of goods sold?Read the answer and worked solution →Opening retained earnings 40,000, net income 25,000, dividends 10,000. Closing?Read the answer and worked solution →Opening cash 20, inflows 90, outflows 60. What is closing cash?Read the answer and worked solution →Total assets are 500 and liabilities 320. What is equity?Read the answer and worked solution →IFRS are issued by which body?Read the answer and worked solution →Cost accounting aims to compute cost, facilitate cost control and what?Read the answer and worked solution →Factory property taxes are categorised as which type of overhead?Read the answer and worked solution →
Worked practice questions
In rising prices, FIFO shows what versus LIFO?
- Lower stock, higher COGS
- Higher stock, lower COGS
- Lower stock, lower COGS
- Higher stock, higher COGS
Show answer and solution
Correct answer: B. Higher stock, lower COGS
FIFO leaves the newest, dearer purchases in stock and charges older, cheaper costs to sales.
Which standards banned LIFO, so more companies returned to FIFO?
- US Internal Revenue Code
- State trade licence rules
- International standards (IFRS)
- Stock exchange listing rules
Show answer and solution
Correct answer: C. International standards (IFRS)
IFRS prohibit LIFO, so firms reporting under them reverted to FIFO or average cost.
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