Question 1

Some companies use the __________________ constraint to avoid assigning incidental costs of acquiring merchandise to inventory.
answers can appear in any order

Accepted Answer

matching ;

Question 2

Goods on consignment are goods that are shipped by the owner,called the _______________,to another party called the ______________________ that will sell the goods for the owner.
answers must appear in this order

Accepted Answer

consignor

Question 3

An advantage of the _________________ method of inventory valuation is that it tends to smooth out the effect of erratic changes in costs.

Accepted Answer

The answer of An advantage of the _________________ method of...

Question 4

A company had the following purchases during the current year:   On December 31,there were 26 units remaining in ending inventory.Using the LIFO inventory valuation method,what is the cost of the ending inventory?

Accepted Answer

A) $3,280. 
B) $3,200. 
C) $3,445. 
D) $3,540. 
E) $3,640. 
A) $3,280. 
B) $3,200. 
C) $3,445. 
D) $3,540. 
E) $3,640.

Question 5

The full disclosure principle:

Accepted Answer

A) Prescribes that the notes to the financial statements report the change from one inventory valuation method to another. 
B) Requires that companies use the same accounting method for inventory valuation period after period. 
C) Is not subject to the consideration of materiality. 
D) Is only applied to retailers and manufacturers. 
E) Is also called the consistency principle. 
A) Prescribes that the notes to the financial statements report the change from one inventory valuation method to another. 
B) Requires that companies use the same accounting method for inventory valuation period after period. 
C) Is not subject to the consideration of materiality. 
D) Is only applied to retailers and manufacturers. 
E) Is also called the consistency principle.

Question 6

Oxford Packing Company reported net sales in November of the current year of $1,000,000.At the beginning of November,the company reported beginning inventory of $368,000.Cost of goods purchased during November amounted to $217,500.The company reported ending inventory at the end of November of $226,750. The company's gross profit rate for November of the current year was:

Accepted Answer

A) 35.9% 
B) 18.8% 
C) 81.2% 
D) 64.1% 
E) 58.6% 
A) 35.9% 
B) 18.8% 
C) 81.2% 
D) 64.1% 
E) 58.6%

Question 7

The inventory valuation method that tends to smooth out erratic changes in costs is:

Accepted Answer

A) FIFO. 
B) Weighted average. 
C) LIFO. 
D) Specific identification. 
E) WIFO. 
A) FIFO. 
B) Weighted average. 
C) LIFO. 
D) Specific identification. 
E) WIFO.

Question 8

The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:

Accepted Answer

A) Weighted average inventory method. 
B) First-in,first-out method. 
C) Last-in,first-out method. 
D) Specific identification method. 
E) Retail inventory method. 
A) Weighted average inventory method. 
B) First-in,first-out method. 
C) Last-in,first-out method. 
D) Specific identification method. 
E) Retail inventory method.

Question 9

Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows:   Lucia Company made two errors: 1)ending inventory at the end of Year 1 was understated by $15,000 and 2)ending inventory at the end of Year 2 was overstated by $6,000.Given this information,the correct cost of goods sold figure for Year 2 would be:

Accepted Answer

A) $291,000 
B) $276,000 
C) $264,000 
D) $285,000 
E) $249,000 
A) $291,000 
B) $276,000 
C) $264,000 
D) $285,000 
E) $249,000

Question 10

All of the following statements related to goods on consignment are true except:

Accepted Answer

A) Goods on consignment are goods provided by the owner,call the consignor. 
B) A consignee sells goods for the owner. 
C) The consignor continues to own the consigned goods. 
D) The consignee reports the goods in its inventory until sold. 
E) The consignor reports the goods in its inventory until sold. 
A) Goods on consignment are goods provided by the owner,call the consignor. 
B) A consignee sells goods for the owner. 
C) The consignor continues to own the consigned goods. 
D) The consignee reports the goods in its inventory until sold. 
E) The consignor reports the goods in its inventory until sold.

Question 11

The _____________________ is a measure of how quickly a merchandiser sells its merchandise inventory.

Accepted Answer

The answer of The _____________________ is a measure of how...

Question 12

A company's inventory records indicate the following data for the month of April:   If the company uses the first-in,first-out (FIFO)method and the perpetual inventory system,what is the amount of cost of goods sold for April?

Accepted Answer

The answer of A company's inventory records indicate the following...

Question 13

A company's inventory records report the following:   On August 15,it sold 30 units.Using the FIFO perpetual inventory method,what is the value of the inventory at August 15 after the sale?

Accepted Answer

A) $140 
B) $160 
C) $210 
D) $380 
E) $590 
A) $140 
B) $160 
C) $210 
D) $380 
E) $590

Question 14

A company sells garden hoses and uses the perpetual inventory system to account for its merchandise.The beginning balance of the inventory and its transactions during September were as follows: September 1: Beginning balance of 18 units at $13 each
September 12: Purchased 30 units at $14 each
September 19: Sold 24 units at $30 selling price each
September 20: Purchased 24 units at $17 each
September 27: Sold 27 units at $30 selling price each
If the ending inventory is reported at $276,what inventory method was used?

Accepted Answer

A) LIFO method. 
B) FIFO method. 
C) Weighted average method. 
D) Specific identification method. 
E) Retail inventory methoD. 
A) LIFO method. 
B) FIFO method. 
C) Weighted average method. 
D) Specific identification method. 
E) Retail inventory methoD.

Question 15

A company's inventory records indicate the following data for the month of July:   If the company uses the weighted average inventory valuation method and the perpetual inventory system,what would be the cost of its ending inventory?

Accepted Answer

The answer of A company's inventory records indicate the following...

Question 16

A company's inventory records report the following in November of the current year:   On November 8,it sold 18 units for $54 each.Using the LIFO perpetual inventory method,what was the amount recorded in the cost of goods sold account for the 18 units sold?

Accepted Answer

A) $395 
B) $410 
C) $450 
D) $510 
E) $520 
A) $395 
B) $410 
C) $450 
D) $510 
E) $520

Question 17

The ________________________ ratio reflects how much inventory is available in terms of days' sales.

Accepted Answer

days' sale

Question 18

A company's inventory records indicate the following data for the month of January:   If the company uses the last-in,first-out perpetual inventory system,what would be the cost of the ending inventory?

Accepted Answer

The answer of A company's inventory records indicate the following...

Question 19

A company's inventory records indicate the following data for the month of April:   If the company uses the first-in,first-out (FIFO)method and the perpetual inventory system,what would be the cost of the ending inventory?

Accepted Answer

The answer of A company's inventory records indicate the following...

Question 20

Salmone Company reported the following purchases and sales of its only product.Salmone uses a perpetual inventory system.Determine the cost assigned to cost of goods sold using FIFO.

Accepted Answer

A) $2,260 
B) $3,180 
C) $1,860 
D) $3,580 
E) $2,100 
A) $2,260 
B) $3,180 
C) $1,860 
D) $3,580 
E) $2,100

Exam 6: Inventories and Cost of Sales

Some companies use the __________________ constraint to avoid assigning incidental costs of acquiring merchandise to inventory. answers can appear in any order

Goods on consignment are goods that are shipped by the owner,called the _______________,to another party called the ______________________ that will sell the goods for the owner. answers must appear in this order

An advantage of the _________________ method of inventory valuation is that it tends to smooth out the effect of erratic changes in costs.

A company had the following purchases during the current year: On December 31,there were 26 units remaining in ending inventory.Using the LIFO inventory valuation method,what is the cost of the ending inventory?

The full disclosure principle:

The inventory valuation method that tends to smooth out erratic changes in costs is:

The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:

All of the following statements related to goods on consignment are true except:

The _____________________ is a measure of how quickly a merchandiser sells its merchandise inventory.

A company's inventory records indicate the following data for the month of April: If the company uses the first-in,first-out (FIFO)method and the perpetual inventory system,what is the amount of cost of goods sold for April?

A company's inventory records report the following: On August 15,it sold 30 units.Using the FIFO perpetual inventory method,what is the value of the inventory at August 15 after the sale?

A company's inventory records indicate the following data for the month of July: If the company uses the weighted average inventory valuation method and the perpetual inventory system,what would be the cost of its ending inventory?

A company's inventory records report the following in November of the current year: On November 8,it sold 18 units for $54 each.Using the LIFO perpetual inventory method,what was the amount recorded in the cost of goods sold account for the 18 units sold?

The ________________________ ratio reflects how much inventory is available in terms of days' sales.

A company's inventory records indicate the following data for the month of January: If the company uses the last-in,first-out perpetual inventory system,what would be the cost of the ending inventory?

A company's inventory records indicate the following data for the month of April: If the company uses the first-in,first-out (FIFO)method and the perpetual inventory system,what would be the cost of the ending inventory?

Salmone Company reported the following purchases and sales of its only product.Salmone uses a perpetual inventory system.Determine the cost assigned to cost of goods sold using FIFO.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

Filters

Goods on consignment are goods that are shipped by the owner,called the _,to another party called the ________ that will sell the goods for the owner. answers must appear in this order