Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
1. A US company can use LIFO for income tax purposes only if it also uses LIFO for financial reporting purposes
2. The weighted average cost per unit is computed by dividing the total cost of goods purchased by the dollar amount of sales
3. Under the FIFO method, the cost of goods sold for each sale is computed using the cost of the most recently acquired units
4. In a period of rising inventory prices, use of FIFO allows a company to minimize its income tax expense
5. To compute cost of goods sold under the weighted average method, it is necessary to first make a computation of the weighted average cost per unit