Exam 7: Inventory

Transportation-in is:

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 weighted average cost method, the amount assigned to the November 30th ending inventory would be:

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 weighted average inventory costing method, cost of goods sold for the month of June is:

A departure from the cost basis of accounting may be necessary when the ____________________ of the inventory is less than its cost to the company.

Delry Appliances On August 1, 2012, Delry Appliances purchased 75 refrigerators for $45,000 cash and also paid $1,500 transportation costs related to this purchase. On the same date, Delry purchased 100 dishwashers for $20,000 on credit; however, the seller paid the $1,200 freight. The credit terms for the dishwashers were 2/10, n/30. On August 3rd, Delry determined that 5 of the refrigerators were defective, so they were returned to the seller. Delry paid for the dishwashers on August 9th. On August 10th, Delry purchased 90 microwave ovens for $9,000 on credit with terms 1/10, n/30. The seller paid the freight. Delry paid for the microwave ovens on August 21st. Delry uses a perpetual inventory system. Refer to the information presented for Delry Appliances. On August 12th, Delry sold 10 dishwashers to customers for $550 each. Delry paid $200 for these dishwashers when it purchased them from the supplier on August 1st. Record the journal entries for this sale.

Cost of goods sold is equal to the beginning inventory plus the cost of net purchases minus ____________________.

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 ending inventory at March 31st?

Delry Appliances On August 1, 2012, Delry Appliances purchased 75 refrigerators for $45,000 cash and also paid $1,500 transportation costs related to this purchase. On the same date, Delry purchased 100 dishwashers for $20,000 on credit; however, the seller paid the $1,200 freight. The credit terms for the dishwashers were 2/10, n/30. On August 3rd, Delry determined that 5 of the refrigerators were defective, so they were returned to the seller. Delry paid for the dishwashers on August 9th. On August 10th, Delry purchased 90 microwave ovens for $9,000 on credit with terms 1/10, n/30. The seller paid the freight. Delry paid for the microwave ovens on August 21st. Delry uses a perpetual inventory system. Refer to the information presented for Delry Appliances. Prepare all of Delry's journal entries for August.

Pollet Company started business at the beginning of 2012. Pollet selected the FIFO method for its inventory costing. The profits will maximize for 2012 under this method, in a period of:

For which type of merchandise would a company most likely use the specific identification method of inventory costing?

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

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 Addison uses the FIFO method, determine the following amounts: A) Ending inventory on February 28 th? B) Cost of goods sold for the month of February?

If the amount assigned to ending inventory is incorrect, then:

Croggins Cane Company has a beginning balance in its inventory account of $15,000 and the ending balance is $10,000. Cost of goods sold is $80,000. According to the cost of goods sold model, what was the amount of inventory purchased during the year?

Denton Hardware had beginning inventory of $44,000 on January 1, 2012. During 2012, Denton purchased $610,000 of goods from a supplier. On December 31, 2012, the cost of unsold inventory was $50,000. Compute Denton's cost of goods available for sale and cost of goods sold for 2012.

The following information is available for Spin Corporation for the year ending December 31, 2012: A) Compute the horizantal analysis for inventory 2012 . B) Compute the vertical analysis for for inventory for 2012 C) Compute the inventory turnover ratio for 2012. D) Compute the days-in-inventory ratio far 2012 .

When the market value of inventory items has declined below their cost, which method would be the most appropriate in complying with GAAP?

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 the weighted average method of inventory costing, how much is cost of goods sold for January?

The following inventory transactions occurred at Erill, Inc. Erill uses a perpetual inventory system. Record the appropriate journal entry for each of these transactions for Erill.

In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is: