Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match each description to the appropriate cost flow assumption.
FIFO
Weighted average
LIFO
Produces the highest ending inventory when costs are increasing
Produces the highest gross profit when costs are decreasing
Never results in either the highest or lowest possible net income
Assigns the same value to all inventory units

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be: