Exam 8: Inventories: Cost Measurement and Flow Assumptions

Given the following information for Glade Company: Jan. 1 Beginning inventory 18 units @\ 4 eacl Jan. 7 Purchase 12 units @\ 5 each Jan. 10 Sale 14 units Jan. 17 Purchase 10 units @\ 6 each Jan 10 Sale 4 units Required: Answer the following questions for Glade Company: a. If FIFO is in use, what is total ending invent ory in dollars? b. If perpetual LIFO is in use, what is cost of goods sold for the month? c. If weighted average is in use, what is enching inventory? d. If moving average is in use what is the cost per urit sold for the Jamuary 10 sale

Which of the following cannot be used as the "current cost" in dollar-value LIFO calculations?

Exhibit 8-2 Walters Co.purchased raw materials with a catalog price of $70, 000 on March 2, 2010.Credit terms of 4/20, n/60 applied.Walters uses a perpetual inventory system and the net price method. - Refer to Exhibit 8-2.If Walters pays for the purchase on March 31, 2010, what amount is recorded in the purchase discounts lost account?

Exhibit 8-2 Walters Co.purchased raw materials with a catalog price of $70, 000 on March 2, 2010.Credit terms of 4/20, n/60 applied.Walters uses a perpetual inventory system and the net price method. - Refer to Exhibit 8-2.If Walters pays for the purchase on March 18, 2010, what amount is recorded in the purchase discounts taken account?

Which one of the following statements is not true?

An American company purchasing goods from a foreign supplier has to account for differences in currencies.This process is made easier

Concerning purchase discounts, which one of the following statements is true?

Listed below are several terms connected with inventory valuation.Following the list is a series of descriptive statements. Required: Match the terms to their respective descriptive statements by placing the appropriate letter in the space provided

Because the specific identification method is used so often in the retail industry, it may appear to be the ideal cost flow assumption to be used in any situation. Required: Indicate whether a periodic or perpetual inventory system is more appropriate for this cost flow assumption, indicate when its use is practical, and discuss the practical and theoretical objections to its use.