Maxim Corp. has provided the following information about one of its products: $\begin{array}{clrr}\text { Date }&\text { Transaction } &\text { Number of Units }&\text { Cost per Unit }\\\hline 1 / 1 & \text { Beginning Inventory } & 200 & \$ 140 \\ 6 / 5 & \text { Purchase } & 400 & \$ 160 \\ 11 / 10 & \text { Purchase } & 100 & \$ 200 \end{array}$ During the year, Maxim sold 400 units. What is cost of goods sold using the average cost method?

A) $48,000. B) $64,000. C) $50,000. D) $62,000. A) $48,000. B) $64,000. C) $50,000. D) $62,000.

RJ Corporation has provided the following information about one of its inventory items: $\begin{array}{clrr}\text { Date }&\text { Transaction } &\text { Number of Units }&\text { Cost per Unit }\\\hline 1 / 1 & \text { Beginning Inventory } & 400 & \$ 3,200 \\ 6 / 6 & \text { Purchase } & 800 & \$ 3,600 \\ 9 / 10 & \text { Purchase } & 1,200 & \$ 4,000 \\ 11 / 15 & \text { Purchase } & 800 & \$ 4,200 \end{array}$ During the year, RJ sold 3,000 units. What was ending inventory using the average cost flow assumption under a periodic inventory system?

A) $640,000. B) $840,000. C) $770,000. D) $880,000. A) $640,000. B) $840,000. C) $770,000. D) $880,000.

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

Tinker's 2014 cost of goods sold was $750,000 and 2013 cost of goods sold was $770,000. The inventory at the end of 2014 was $188,000 and $208,000 at the end of 2013. Tinker's average number of days to sell its inventory during 2014 is closest to:

(Multiple Choice)

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Question 41

In a period of increasing costs, the LIFO Reserve would be deducted from the ending inventory under LIFO costing to convert it to ending inventory under FIFO costing.

(True/False)

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Question 42

Carr Corporation has provided the following information for its most recent month of operation: sales $8,000; beginning inventory $1,000; ending inventory $2,000 and gross profit $5,000. How much were Carr's inventory purchases during the period?

(Multiple Choice)

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Question 43

On December 15, 2014, Transport Company accepted delivery of merchandise that it purchased on credit. As of December 31, 2014, the company had neither recorded the transaction nor included the merchandise in its ending inventory amount because the seller's invoice had not been received. The effect of this omission on its balance sheet at December 31, 2014, (end of the accounting period) was that

(Multiple Choice)

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Question 44

Maxim Corp. has provided the following information about one of its products: Date Transaction Number of Units Cost per Unit 1/1 Beginning Inventory 200 \ 140 6/5 Purchase 400 \ 160 11/10 Purchase 100 \ 200 During the year, Maxim sold 400 units. What is cost of goods sold using the average cost method?

(Multiple Choice)

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Question 45

Iris Company has provided the following information regarding two of its items of inventory at year-end: • There are 100 units of Item A, having a cost of $20 per unit and a replacement cost of $18 per unit. • There are 50 units of Item B, having a cost of $50 per unit and a replacement cost of $55 per unit. How much is the ending inventory using lower of cost or market on an item-by-item basis?

(Multiple Choice)

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Question 46

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

(Multiple Choice)

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Question 47

Inventory turnover under LIFO is greater than inventory turnover under FIFO when unit costs are increasing.

(True/False)

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Question 48

RJ Corporation has provided the following information about one of its inventory items: Date Transaction Number of Units Cost per Unit 1/1 Beginning Inventory 400 \ 3,200 6/6 Purchase 800 \ 3,600 9/10 Purchase 1,200 \ 4,000 11/15 Purchase 800 \ 4,200 During the year, RJ sold 3,000 units. What was ending inventory using the average cost flow assumption under a periodic inventory system?

(Multiple Choice)

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Question 49

An increase in inventory is subtracted from net income when determining cash flow from operating activities.

(True/False)

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Question 50

When there is a $3,000,000 decrease in inventory and a $2,000,000 decrease in accounts payable, cash flow from operating activities increases by $1,000,000.

(True/False)

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Question 51

What is the net adjustment to net income with respect to the determination of cash flows from operating activities when inventory increases $100,000 and accounts payable increases $20,000?

(Multiple Choice)

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Question 52

On March 15, 2014, Ryan Company purchased $10,000 of merchandise on credit subject to terms of 2/10, n/30. Ryan Company records its purchases using the gross amount. The periodic inventory system is used. Which of the following journal entries is correct when Ryan Company pays for these goods on March 30, 2014?

(Multiple Choice)

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Question 53

A grocery store probably would use the specific identification inventory costing method for most of the items in its inventory.

(True/False)

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Question 54

LIFO liquidation results when a company has a lower level of inventory at the end of the year than it had at the beginning of the year.

(True/False)

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Question 55

Which of the following journal entries is not consistent with the use of a periodic inventory system? A. Purchases $\quad$ Accounts payable B. Inventory $\quad$ Accounts payable C. Accounts payable $\quad$ Cash D. Accounts receivable $\quad$ Sales revenue

(Multiple Choice)

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Question 56

A decrease in the merchandise inventory account occurs when units of inventory purchased are greater than units of goods sold.

(True/False)

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Question 57

The journal entry to write-down inventory under the lower of cost or market (LCM) rule results in a credit to cost of goods sold and a debit to inventory.

(True/False)

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Question 58

An increase in accounts payable is added to net income when determining cash flows from operating activities.

(True/False)

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Question 59

Which of the following statements is correct regarding either the perpetual or periodic inventory systems?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 124

Tinker's 2014 cost of goods sold was $750,000 and 2013 cost of goods sold was $770,000. The inventory at the end of 2014 was $188,000 and $208,000 at the end of 2013. Tinker's average number of days to sell its inventory during 2014 is closest to:

In a period of increasing costs, the LIFO Reserve would be deducted from the ending inventory under LIFO costing to convert it to ending inventory under FIFO costing.

Carr Corporation has provided the following information for its most recent month of operation: sales $8,000; beginning inventory $1,000; ending inventory $2,000 and gross profit $5,000. How much were Carr's inventory purchases during the period?

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

Inventory turnover under LIFO is greater than inventory turnover under FIFO when unit costs are increasing.

An increase in inventory is subtracted from net income when determining cash flow from operating activities.

When there is a $3,000,000 decrease in inventory and a $2,000,000 decrease in accounts payable, cash flow from operating activities increases by $1,000,000.

What is the net adjustment to net income with respect to the determination of cash flows from operating activities when inventory increases $100,000 and accounts payable increases $20,000?

A grocery store probably would use the specific identification inventory costing method for most of the items in its inventory.

LIFO liquidation results when a company has a lower level of inventory at the end of the year than it had at the beginning of the year.

Which of the following journal entries is not consistent with the use of a periodic inventory system? A. Purchases $\quad$ Accounts payable B. Inventory $\quad$ Accounts payable C. Accounts payable $\quad$ Cash D. Accounts receivable $\quad$ Sales revenue

A decrease in the merchandise inventory account occurs when units of inventory purchased are greater than units of goods sold.

The journal entry to write-down inventory under the lower of cost or market (LCM) rule results in a credit to cost of goods sold and a debit to inventory.

An increase in accounts payable is added to net income when determining cash flows from operating activities.

Which of the following statements is correct regarding either the perpetual or periodic inventory systems?

Financial Statements and Business Decisions

Investing and Financing Decisions and the Accounting System

Operating Decisions and the Accounting System

Adjustments, Financial Statements, and the Quality of Earnings

Communicating and Interpreting Accounting Information

Reporting and Interpreting Sales Revenue, Receivables, and Cash

Reporting and Interpreting Property, Plant, and Equipment; Intangibles; and Natural Resources

Reporting and Interpreting Liabilities

Reporting and Interpreting Bonds

Reporting and Interpreting Owners Equity

Statement of Cash Flows

Analyzing Financial Statements

Reporting and Interpreting Investments in Other Corporations

Filters

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

Tinker's 2014 cost of goods sold was $750,000 and 2013 cost of goods sold was $770,000. The inventory at the end of 2014 was $188,000 and $208,000 at the end of 2013. Tinker's average number of days to sell its inventory during 2014 is closest to:

In a period of increasing costs, the LIFO Reserve would be deducted from the ending inventory under LIFO costing to convert it to ending inventory under FIFO costing.

Carr Corporation has provided the following information for its most recent month of operation: sales $8,000; beginning inventory $1,000; ending inventory $2,000 and gross profit $5,000. How much were Carr's inventory purchases during the period?

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

Inventory turnover under LIFO is greater than inventory turnover under FIFO when unit costs are increasing.

An increase in inventory is subtracted from net income when determining cash flow from operating activities.

When there is a $3,000,000 decrease in inventory and a $2,000,000 decrease in accounts payable, cash flow from operating activities increases by $1,000,000.

What is the net adjustment to net income with respect to the determination of cash flows from operating activities when inventory increases $100,000 and accounts payable increases $20,000?

A grocery store probably would use the specific identification inventory costing method for most of the items in its inventory.

LIFO liquidation results when a company has a lower level of inventory at the end of the year than it had at the beginning of the year.

Which of the following journal entries is not consistent with the use of a periodic inventory system? A. Purchases \quad Accounts payable B. Inventory \quad Accounts payable C. Accounts payable \quad Cash D. Accounts receivable \quad Sales revenue

A decrease in the merchandise inventory account occurs when units of inventory purchased are greater than units of goods sold.

The journal entry to write-down inventory under the lower of cost or market (LCM) rule results in a credit to cost of goods sold and a debit to inventory.

An increase in accounts payable is added to net income when determining cash flows from operating activities.

Which of the following statements is correct regarding either the perpetual or periodic inventory systems?

Financial Statements and Business Decisions

Investing and Financing Decisions and the Accounting System

Operating Decisions and the Accounting System

Adjustments, Financial Statements, and the Quality of Earnings

Communicating and Interpreting Accounting Information

Reporting and Interpreting Sales Revenue, Receivables, and Cash

Reporting and Interpreting Property, Plant, and Equipment; Intangibles; and Natural Resources

Reporting and Interpreting Liabilities

Reporting and Interpreting Bonds

Reporting and Interpreting Owners Equity

Statement of Cash Flows

Analyzing Financial Statements

Reporting and Interpreting Investments in Other Corporations

Filters

Which of the following journal entries is not consistent with the use of a periodic inventory system? A. Purchases $\quad$ Accounts payable B. Inventory $\quad$ Accounts payable C. Accounts payable $\quad$ Cash D. Accounts receivable $\quad$ Sales revenue