Choose the appropriate letter to match the term and the definition.There are more definitions than terms.
TERM
1.____ Consignment Inventory
2.____ Cost of Goods Sold
3.____ Cost of Goods Sold Equation
4.____ Ending Inventory Equation
5.____ Finished Goods Inventory
6.____ Goods in Transit
7.____ Gross Profit
8.____ Inventory
9.____ Merchandise Inventory
10.____ Raw Materials Inventory
11.____ Work in Process Inventory
DEFINITION
A.A valuation rule that requires Inventory to be written down when its market value falls below its cost.
B.Inventory costing method that assumes that the costs of the first goods purchased are the costs of the first goods sold.
C.Beginning Inventory + Purchases - Ending Inventory
D.Consists of products acquired in a finished condition,ready for sale without further processing.
E.The expense that follows directly after Net Sales on a multiple step income statement.
F.Goods a company is holding on behalf of the goods' owner.
G.Goods that are held for sale in the normal course of business or are used to produce other goods for sale.
H.Goods that are in the process of being manufactured.
I.Inventory costing method that identifies the cost of the specific item that was sold.
J.The inventory that starts the manufacturing process.
K.Inventory that was in process and now is completed and ready for sale.
L.Inventory items being transported.
M.A measure of the average number of days from the time inventory is bought to the time it is sold.
N.How many times (on average)that inventory has been bought or sold.
O.Requires that if LIFO is used on the income tax return,it also must be used in financial statement reporting.
P.Beginning Inventory + Purchases - Cost of Goods Sold
Q.The difference between net sales and cost of goods sold.
R.Inventory costing method that assumes that the costs of the last goods purchased are the costs of the first goods sold.
S.Inventory costing method that uses the weighted average unit cost of the goods available for sale for both cost of goods sold and ending inventory.

The Acme Corporation Starts the Year with a Beginning Inventory

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