ACC 231 Chapter 5 Question and answers rated A+ 2025/2026

ACC 231 Chapter 5 Question and
answers rated A+ 2025/2026
Finished Goods Inventory - correct answer ✔Inventory of goods ready to sell



Raw Materials Inventory - correct answer ✔Inventory items used in the production of goods



Work in Process Inventory - correct answer ✔Inventory of partially completed goods



Specific Identification - correct answer ✔Inventory costing method in which a business uses the specific
cost of each unit of inventory; also called the specific-unit-cost method



First In, First Out (FIFO) - correct answer ✔Inventory costing method in which the first inventory costs
are the first costs to be assigned to the cost of goods sold; FIFO leaves in ending inventory the last, most
recent costs incurred



Last In, First Out (LIFO) - correct answer ✔Inventory costing method in which the last inventory costs
incurred are the first costs to be assigned to cost of goods sold; LIFO leaves in ending inventory the first,
oldest costs incurred



Average Cost - correct answer ✔After each purchase of inventory, a new weighted average cost per
unit is computed and is used to value ending inventory and cost of goods sold



Inventory Layer - correct answer ✔A record of the quantity of and the cost of inventory items made in
a single purchase



Cost of Goods Available for Sale - correct answer ✔The cost of inventory on hand at the beginning of
the period plus the net cost of inventory purchased during the period