Exam 7: Reporting and Interpreting Cost of Goods Sold and Inventory

RJ Corporation has provided the following information about one of its inventory items: During the year,RJ sold 3,000 units. - What was cost of goods sold using the FIFO cost flow assumption?

Carrie Company sold merchandise with an invoice price of $1,000 to Underwood,Inc. ,with terms of 2/10,n/30.Which of the following is the correct entry to record the payment by Underwood Inc. ,within 10 days if the company uses the perpetual inventory system and the gross method to record purchases?

RJ Corporation has provided the following information about one of its inventory items: During the year,RJ sold 3,000 units. - What was cost of goods sold using the LIFO cost flow assumption?

RJ Corporation has provided the following information about one of its inventory items: During the year,RJ sold 3,000 units. - What was ending inventory using the average cost flow assumption?

The average days to sell inventory decreases as inventory turnover increases.

The FIFO inventory method allocates the earliest inventory purchase costs to ending inventory.

A company can use the LIFO inventory method for income tax purposes and the FIFO inventory method for financial reporting purposes during a given year.

A company provided the following data: sales,$500,000;beginning inventory,$40,000;ending inventory,$45,000;and gross profit,$150,000.What was the amount of inventory purchased during the year?

Hopkins Company reported the following information related to inventory and sales: Sales-8,000 units at $35 per unit. Compute the following amounts:

Carp Corporation has provided the following information for its most recent month of operation: sales $16,000;ending inventory $4,000,purchases $8,000 and gross profit $10,000.How much was Carp's beginning inventory?

An understatement of ending inventory results in an overstatement of net income.

An overstatement of the 2018 ending inventory results in an understatement of net income during 2019.

Which of the following statements is correct when inventory unit costs are increasing?

Which of the following statements is correct when inventory unit costs are decreasing?

Of the following,which is not a reason for having controls to safeguard inventories?

RJ Corporation has provided the following information about one of its inventory items: During the year,RJ sold 3,000 units. - What was cost of goods sold using the average cost flow assumption?

Which of the following would not be a component of the year-end inventory balance?

Lauer Corporation has provided the following information about one of its laptop computers: During the year,Lauer sold 750 laptop computers. - What was ending inventory using the FIFO cost flow assumption?

Which of the following statements is correct?

Which of the following is correct when,in the same year,beginning inventory is overstated by $1,300 and ending inventory is understated by $700?