Exam 7: Inventory

Entee Corporation Entee Corporation uses a periodic inventory system. The following information is available for the month of November. - Refer to the information provided for Entee Corporation. If Entee uses the FIFO inventory costing method, the amount assigned to the November 30th inventory would be:

Jensan Company Jensan uses a perpetual inventory system and had the following inventory transactions for the month of June. The June 30th inventory included 45 units from the June 4th purchase and 45 units from the June 10th purchase. - Refer to the information provided for Jensan Company. What is the cost of goods sold for June under the specific identification method?

The ____________________ method calculates cost of goods sold based on the assumption that the first unit of inventory purchased is the first unit sold.

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 balance sheet in 2012?

Entee Corporation Entee Corporation uses a periodic inventory system. The following information is available for the month of November. - Refer to the information provided for Entee Corporation. How many units did Entee sell during November?

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 FIFO inventory costing method, how much is cost of goods sold for March?

Inventory turnover:

Medina Enterprises The following selected financial information is available for Medina for the year ended December 31, 2012. - Refer to the information provided for Medina Enterprises. What is the inventory turnover ratio for 2012?

Shelton Brothers, Inc. Shelton Brothers uses a periodic inventory system. It purchased merchandise from BXP on account Inc. on July 7, 2012, for $15,000. The credit terms were 1/10, n/30. Shelton paid the amount due on July 15. -Refer to the information provided for Shelton Brothers, Inc. The effect of recording the payment on July 15th will include:

The days-in-inventory ratio:

Richy Automotive uses the periodic inventory system. The data presented below is from the accounting records of Richy for the year ended December 31, 2012: Calculate Richy's cost of goods sold for 2012.

The ratio of a company's cost of goods sold to its average inventory is called its ____________________.

Which of the following statements regarding the application of the lower-of-cost-or-market method is true?

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 weighted average method of inventory costing is used, determine the following amounts: A) Cost of goods sold for the units sold on July 10 th? B) Ending inventory on July 31 st?

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

Which method of inventory costing is not acceptable for financial accounting purposes?

A company can calculate its days-in-inventory ratio by dividing the 365 days per year by its ____________________.

Medina Enterprises The following selected financial information is available for Medina for the year ended December 31, 2012. - Refer to the information provided for Medina Enterprises. Calculate Medina's days-in-inventory ratio.

The following journal entry was included in the accounting records of Jonase, Inc. This entry is needed when Jonase records the:

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 FIFO inventory costing method, the amount of ending inventory reported on the balance sheet is: