Exam 7: Inventory

Prak Masters prepared the following analysis of its year-end inventory on June 30th: Cost Market value Product Quantity per unit per unit 17 \ 430 \ 499 140 325 299 38 75 60 Determine the lower-of-cost-or-market value for each product in Prak Master's inventory and prepare the journal entry needed at year-end to value the inventory at LCM.

Max's Tire Center Company Selected data from the financial statements of Max's Tire Center are provided below. - Refer to the selected data provided for Max's Tire Center. Which of the following would result from a horizontal analysis of Max's balance sheet?

Tickets4U.com Tickets4U.com uses a perpetual inventory system with a weighted average inventory costing method. The following information is available for the month of April. -Refer to the information provided for Tickets4U.com. Calculate the cost of goods sold for the units sold on April 15th.

Silvermark Enterprises The following information is from Silvermark's 2012 accounting records. -Refer to the information provided for Silvermark Enterprises. Using the cost of goods sold model, how much will Silvermark report as its cost of goods sold in its 2012 income statement?

The amount of inventory expensed during the year is reported on the income statement as:

The understatement of ending inventories in one period leads to a(n) ____________________ of cost of goods sold in the same period.

Filmore Enterprises The following information is from Filmore's 2012 accounting records. - Refer to the information provided for Filmore Enterprises. Using the gross profit method, estimate Filmore's cost of goods sold at year-end.

How are purchase returns and purchase discounts recorded by a company using the periodic inventory system?

Shirey Co. Shirey uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January. -Refer to the information provided for Shirey. If Shirey uses FIFO inventory costing method, how much is cost of goods sold for January?

Max's Tire Center Company Selected data from the financial statements of Max's Tire Center are provided below. -Refer to the selected data provided for Max's Tire Center. Which of the following would result from a vertical analysis of Max's income statement in 2012?

Which inventory cost flow method assigns the cost of the most recent items purchased to cost of goods sold?

Geoffry Hesse Exports The following data are available for one of the products sold by Geoffry Hesse Exports, which uses a perpetual inventory system. - Refer to the information provided for Geoffry Hesse Exports. If the FIFO method of inventory costing is used, determine the following amounts:

Wilsonwear Corporation Wilsonwear uses a perpetual inventory system. The following information is available for the month of March. - Refer to the information provided for Wilsonwear Corporation. If Wilsonwear uses the LIFO inventory costing method, how much is cost of goods sold for the month of March?

Addison Knitwear The following data are available for one item of merchandise sold by Addison Knitwear, which uses a periodic inventory system. Refer to the information provided for Addison Knitwear. If the LIFO method is used, determine the following amounts: A) Ending inventory on February 28 th? B) Cost of goods sold for the month of February?

Which inventory cost flow method assigns the average unit cost to all units whether sold or left in ending inventory?

What effects occur on a retail store's accounting equation when it records purchase of merchandise on account, assuming the use of a perpetual inventory system?

Portey Company Portey uses a perpetual inventory system and had the following inventory transactions for the month of June. - Refer to the information provided for Portey. If Portey uses the LIFO inventory costing method, ending inventory at June 30th is:

Which one of the following statements regarding changing inventory costing methods is true?

Stephan, Inc. Stephan, Inc. has an inventory turnover rate of 8 times. - Refer to the information provided for Stephan, Inc. Calculate the company's days-in-inventory ratio.

Ronn Industries Ronn Industries reported net income of $95,000 for 2012. Early in 2013, Ronn discovered that its 2012 ending inventory was overstated by $5,000. - Refer to the information provided for Ronn Industries. Determine the effects of the inventory errors for 2012.