Exam 7: Inventories and Cost of Goods Sold

If a firm's beginning inventory is $35,000,goods purchased during the period cost $120,000,and the cost of goods sold for the period is $140,000,what is the amount of the ending inventory?

Which of the following companies would be least concerned about a low inventory turnover ratio?

Use the information above to answer the following question.Days to sell for 2014 is:

Use the information above to answer the following question.Acme sells 150 units during the quarter.If Acme uses the weighted average method,what is its cost of goods sold for the quarter?

A company's ability to pay its short-term obligations depends on many factors,including how quickly it sells its inventory.

Which of the following would cause the greatest increase in a company's inventory turnover ratio?

An increasing balance in the inventory account and a declining inventory turnover ratio implies that the inventory build up is occurring because:

In applying the lower of cost or market method to inventory,market is defined as

In a period of rising prices,the inventory costing method that will cause the company to have the lowest income taxes is

The following company buys and sells identical collectors' coin sets.The company uses LIFO.In the first two columns below,each coin set is identified by its letter and its cost.The third column indicates when coin sets were sold. For each inventory costing method given below,fill in the blanks to indicate the letter of the coin set which will be used to calculate either cost of goods sold or the cost of ending inventory.

Use the information above to answer the following question.If the company uses the FIFO costing method,what is the cost of its ending inventory?

Use the information above to answer the following question.The inventory turnover ratio is closest to:

A company using a perpetual inventory system made the following entry: What does this entry reflect?

On April 6,Lopez Co.purchased $5,000 of merchandise,terms 1/15,n/30.Lopez Co.paid for the purchase on April 26.The entry to record the payment on April 26 in a perpetual inventory system includes which of the following?

Alphabet Company buys different letters for resale.It buys A thru G on January 1 at $4 per letter,and sells A and E on January 15.On February 1,it buys H thru L at $6 per letter and sells D,H and J on February 9.It then buys M thru R on March 1 at $7 per letter and sells N on March 19.If the company uses the LIFO method on a perpetual basis,what is the cost of its ending inventory (rounded to the nearest dollar)?

The most commonly used inventory costing method in the U.S.is:

Use the information above to answer the following question.BetterBuy records $3,000 as the cost of goods sold.BetterBuy is using the:

Given the following information for Maynor Company in 2014,calculate the company's ending inventory and cost of goods sold using the following inventory costing methods,assuming the company uses a perpetual inventory system: a)Weighted Average b)FIFO c)LIFO

Which of the following is not true if excessive quantities of inventory are purchased?

An error in the ending inventory one period causes an offsetting error in the next period,and as a result: