Inventory and Cost of Goods Sold (Word Scramble)

1. Inventory is reported as a _________ asset.

2. Inventory is often reported at the _______ of cost or net realizable value.

3. FIFO and LIFO are examples of cost flow ________________.

4. Under this inventory system the balance in the Inventory account changes with each sale.

5. Under this inventory system the balance in the Inventory account does not change with each sale.

6. A ___________ will report raw materials, work-in-process, and finished goods inventory.

7. The freight cost on inventory items that are purchased FOB __________ point will be an inventoriable cost.

8. There will be no freight-in on goods purchased FOB _______________.

9. The annual cost of goods sold divided by the average inventory balances is the inventory ______________ ratio.

10. The expected selling price in the ordinary course of business minus the estimated costs of completion, disposal, and transportation is the net ___________ value.