Fill in the Blank Questions
202. Goods that are in transit and were shipped FOB shipping point should be included in the inventory records of the _______________________.
203. Goods that are in transit and were shipped FOB destination should be included in the inventory records of the _______________________.
205. _______________________ is the estimated sales price of damaged goods minus the cost of making the sale.
206. Some companies use the __________________ constraint to avoid assigning incidental costs of acquiring merchandise to inventory.
207. The cost of an inventory item includes the _____________, plus ______________ costs necessary to put it in a place and condition for sale.
208. When purchase costs regularly rise, the ___________________ method of inventory valuation yields the highest gross profit and net income.
209. When purchase costs regularly rise, the ___________________ method of inventory valuation yields the lowest gross profit and net income, providing a tax advantage.
210. An advantage of the _________________ method of inventory valuation is that it tends to smooth out the effect of erratic changes in costs.
211. An overstated beginning inventory will ______________ cost of goods sold and _____________ net income.