39. In a period of rising prices, the use of which of the following cost flow methods would result in the lowest tax liability? A. FIFO B. LIFO C. Weighted average cost D. Moving average cost 40. In a period of rising prices, the use of which of the following cost flow methods would result in the lowest cost of goods sold? A. FIFO B. LIFO C. Weighted average cost D. Moving average cost 41. When selecting a method of inventory costing, a company must consider all of the following except: A. federal and state income tax regulations. B. current economic conditions. C. the flow of materials. D. its rate of inventory turnover. 42. At the end of the period, the balance in the Materials account should represent A. the cost of materials purchased. B. the cost of materials on hand. C. the cost of materials issued into production. D. the cost of materials included in Work in Process and Finished Goods. 43. The general ledger entry to record the purchase of materials is: A. Debit-Purchases Received Credit-Purchase Orders Outstanding B. Debit-Materials Credit-Purchase Orders Outstanding C. Debit-Purchases Received Credit-Accounts Payable D. Debit-Materials Credit-Accounts Payable
39. In a period of rising prices, the use of which of the following cost flow methods would result in the lowest tax liability? A. FIFO B. LIFO C. Weighted average cost D. Moving average cost 40. In a period of rising prices, the use of which of the following cost flow methods would result in the lowest cost of goods sold? A. FIFO B. LIFO C. Weighted average cost D. Moving average cost 41. When selecting a method of inventory costing, a company must consider all of the following except: A. federal and state income tax regulations. B. current economic conditions. C. the flow of materials. D. its rate of inventory turnover. 42. At the end of the period, the balance in the Materials account should represent A. the cost of materials purchased. B. the cost of materials on hand. C. the cost of materials issued into production. D. the cost of materials included in Work in Process and Finished Goods. 43. The general ledger entry to record the purchase of materials is: A. Debit-Purchases Received Credit-Purchase Orders Outstanding B. Debit-Materials Credit-Purchase Orders Outstanding C. Debit-Purchases Received Credit-Accounts Payable D. Debit-Materials Credit-Accounts Payable