Chet Company provides the following information: \[\begin{array} { | l | r | } \hline \text { Beginning Inventory } & \$ 120,000 \\ \hline \text { Purchases } & 530,000 \\ \hline \text { Freight-In } & 21,000 \\ \hline \text { Freight-Out } & 14,000 \\ \hline \text { Purchase Discounts } & 5,800 \\ \hline \text { Purchase Returns } & 8,000 \\ \hline \text { Ending Inventory } & 128,000 \\ \hline \end{array}\] What is the cost of goods sold?

A) $657,200 B) $529,200 C) $671,000 D) $537,200 A) $657,200 B) $529,200 C) $671,000 D) $537,200

The Jensen Store has the following data for inventory: \[\begin{array} { | l | r | r | } \hline & \text { Cost } & \text { Retail } \\ \hline \text { Inventory, January 1 } & \$ 230,000 & \$ 350,000 \\ \hline \text { Purchases for January } & 370,000 & 480,000 \\ \hline \text { Sales for January } & & 430,000 \\ \hline \end{array}\] The store uses the dollar-value LIFO retail method. The price index for the year is 1.08. The price index that pertains to the beginning inventory is 1.00. What is the retail value of the ending inventory at January 31?

A) $400,000 B) $600,000 C) $910,000 D) $830,000 A) $400,000 B) $600,000 C) $910,000 D) $830,000

The Geewhiz Company uses the perpetual inventory system. The Geewhiz Company has the following data available for the month of January: \[\begin{array} { | l | l | l | l | } \hline \text { Date } & \text { Transaction } & \text { Units } & \text { Unit Cost } \\ \hline \text { Jan. 1 } & \text { Beginning inventory } & 200 & \$ 2.00 \\ \hline \text { Jan. } 9 & \text { Purchase } & 300 & \$ 2.20 \\ \hline \text { Jan. 10 } & \text { Sale } & 400 & \\ \hline \text { Jan. 15 } & \text { Purchase } & 400 & \$ 2.30 \\ \hline \text { Jan. 18 } & \text { Sale } & 300 & \\ \hline \text { Jan. } 24 & \text { Purchase } & 100 & \$ 2.40 \\ \hline \text { Jan. 30 } & \text { Sale } & 10 & \\ \hline \end{array}\] Determine the cost of the ending inventory using the following methods: a. FIFO b. LIFO c. Moving-average (Round per unit costs to four decimal places and all other dollar amounts to two decimal places.)

a. FIFO FIFO periodic is the same as FIF

The following information is available for the past month for a retail store: \[\begin{array} { | l | r | } \hline \text { Sales } & \$ 105,000 \\ \hline \text { Markups } & \$ 10,000 \\ \hline \text { Markdowns } & \$ 8,000 \\ \hline \text { Purchases (at cost) } & \$ 38,800 \\ \hline \text { Purchases (at retail) } & \$ 107,000 \\ \hline \text { Beginning inventory (at cost) } & \$ 33,000 \\ \hline \text { Beginning inventory (at retail) } & \$ 48,000 \\ \hline \end{array}\] What is the ending inventory at cost using the basic retail method? (Round cost-to-retail ratios to four decimal places.)

A) $23,780 B) $28,220 C) $52,000 D) $15,000 A) $23,780 B) $28,220 C) $52,000 D) $15,000

A department store wants to estimate the cost of ending inventory using the conventional retail method. Round ratios to four decimal places. For example, 0.43677 equals 0.4368. The following data is available: \[\begin{array} { | l | r | } \hline \text { Sales } & \$ 90,000 \\ \hline \text { Sales Returns } & \$ 1,000 \\ \hline \text { Markups } & \$ 10,000 \\ \hline \text { Markdowns } & \$ 9,000 \\ \hline \text { Purchases (at cost) } & \$ 20,000 \\ \hline \text { Purchases (at retail) } & \$ 50,000 \\ \hline \text { Purchase returns (at cost) } & \$ 1,200 \\ \hline \text { Purchase returns (at retail) } & \$ 2,000 \\ \hline \text { Beginning inventory (at cost) } & \$ 30,000 \\ \hline \text { Beginning inventory (at retail) } & \$ 46,000 \\ \hline \end{array}\] Required: Using the conventional retail method, estimate the cost of ending inventory.

\[\begin{array} { | l | r | r | } \hlin

Exam 10: Short-Term Operating Assets: Inventory

Chet Company provides the following information: Beginning Inventory \ 120,000 Purchases 530,000 Freight-In 21,000 Freight-Out 14,000 Purchase Discounts 5,800 Purchase Returns 8,000 Ending Inventory 128,000 What is the cost of goods sold?

(Multiple Choice)

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Question 101

The Jensen Store has the following data for inventory: Cost Retail Inventory, January 1 \ 230,000 \ 350,000 Purchases for January 370,000 480,000 Sales for January 430,000 The store uses the dollar-value LIFO retail method. The price index for the year is 1.08. The price index that pertains to the beginning inventory is 1.00. What is the retail value of the ending inventory at January 31?

(Multiple Choice)

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Question 102

A company uses the conventional retail method to estimate the cost of ending inventory for interim financial statements. Which of the following responses describe the correct treatment of markups and markup cancellations in the calculation of the cost-to-retail ratio?

(Multiple Choice)

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Question 103

Following IFRS, which of the following statements is not correct?

(Multiple Choice)

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Question 104

The LIFO effect is ________.

(Multiple Choice)

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Question 105

The Geewhiz Company uses the perpetual inventory system. The Geewhiz Company has the following data available for the month of January: Date Transaction Units Unit Cost Jan. 1 Beginning inventory 200 \ 2.00 Jan. 9 Purchase 300 \ 2.20 Jan. 10 Sale 400 Jan. 15 Purchase 400 \ 2.30 Jan. 18 Sale 300 Jan. 24 Purchase 100 \ 2.40 Jan. 30 Sale 10 Determine the cost of the ending inventory using the following methods: a. FIFO b. LIFO c. Moving-average (Round per unit costs to four decimal places and all other dollar amounts to two decimal places.)

(Essay)

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Question 106

The income taxes saved by using LIFO instead of FIFO are equal to ________.

(Multiple Choice)

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Question 107

Charles Company's balance sheet reports Raw Materials Inventory, $570,000; Finished Goods Inventory, $695,000; and total inventories at $1,901,000. What is the value of Work-in-Process Inventory?

(Multiple Choice)

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Question 108

The following information is available for the past month for a retail store: Sales \ 105,000 Markups \ 10,000 Markdowns \ 8,000 Purchases (at cost) \ 38,800 Purchases (at retail) \ 107,000 Beginning inventory (at cost) \ 33,000 Beginning inventory (at retail) \ 48,000 What is the ending inventory at cost using the basic retail method? (Round cost-to-retail ratios to four decimal places.)

(Multiple Choice)

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Question 109

Which statement is not correct about perpetual inventory systems?

(Multiple Choice)

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Question 110

A markdown is the amount that the firm decreases the selling price below the initial markup.

(True/False)

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Question 111

The gross profit method may not be used for budgeting purposes.

(True/False)

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Question 112

A company uses the basic retail method to estimate the cost of ending inventory for interim financial statements. Which of the following responses describe the correct treatment of markups and markup cancellations in the calculation of the cost-to-retail ratio?

(Multiple Choice)

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Question 113

A department store wants to estimate the cost of ending inventory using the conventional retail method. Round ratios to four decimal places. For example, 0.43677 equals 0.4368. The following data is available: Sales \ 90,000 Sales Returns \ 1,000 Markups \ 10,000 Markdowns \ 9,000 Purchases (at cost) \ 20,000 Purchases (at retail) \ 50,000 Purchase returns (at cost) \ 1,200 Purchase returns (at retail) \ 2,000 Beginning inventory (at cost) \ 30,000 Beginning inventory (at retail) \ 46,000 Required: Using the conventional retail method, estimate the cost of ending inventory.

(Essay)

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Question 114

The specific identification inventory method is used by companies that sell high-dollar products.

(True/False)

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Question 115

To calculate inventory using the gross profit method, one must know the gross profit percentage.

(True/False)

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Question 116

Dombrose Company uses a perpetual inventory system. On January 1, inventory is $253,000. On April 5, Dombrose sells inventory with a selling price of $75,000 on account. The cost of the inventory sold is $50,000. The journal entry (entries) to record the sale is (are) ________.

(Multiple Choice)

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Question 117

At December 31, the Wendy Company has ending inventory with a historical cost of $631,000 valued using FIFO. Assume the company uses the perpetual inventory system. The net realizable value of the inventory is $614,000. The normal profit on this inventory is $50,000. Before any adjustments at the end of the period, the cost of goods sold account has a balance of $900,000. Following U.S. GAAP, which journal entry is required on December 31 to adjust the ending balance of inventory if the indirect method is used?

(Multiple Choice)

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Question 118

Savage Company adopted the dollar-value LIFO method in 2014. At December 31, 2014, ending inventory was $102,000, with a price index of 1.00, using dollar-value LIFO. At December 31, 2015, the ending inventory using FIFO is $131,000 and the price index is 1.20. What is the LIFO Reserve on December 31, 2015? (Round all dollar amounts to the nearest dollar.)

(Multiple Choice)

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Question 119

Beginning inventory + Net Purchases = Cost of Goods Sold.

(True/False)

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Question 120

Chet Company provides the following information: Beginning Inventory \ 120,000 Purchases 530,000 Freight-In 21,000 Freight-Out 14,000 Purchase Discounts 5,800 Purchase Returns 8,000 Ending Inventory 128,000 What is the cost of goods sold?

A company uses the conventional retail method to estimate the cost of ending inventory for interim financial statements. Which of the following responses describe the correct treatment of markups and markup cancellations in the calculation of the cost-to-retail ratio?

Following IFRS, which of the following statements is not correct?

The LIFO effect is ________.

The income taxes saved by using LIFO instead of FIFO are equal to ________.

Charles Company's balance sheet reports Raw Materials Inventory, $570,000; Finished Goods Inventory, $695,000; and total inventories at $1,901,000. What is the value of Work-in-Process Inventory?

Which statement is not correct about perpetual inventory systems?

A markdown is the amount that the firm decreases the selling price below the initial markup.

The gross profit method may not be used for budgeting purposes.

A company uses the basic retail method to estimate the cost of ending inventory for interim financial statements. Which of the following responses describe the correct treatment of markups and markup cancellations in the calculation of the cost-to-retail ratio?

The specific identification inventory method is used by companies that sell high-dollar products.

To calculate inventory using the gross profit method, one must know the gross profit percentage.

Dombrose Company uses a perpetual inventory system. On January 1, inventory is $253,000. On April 5, Dombrose sells inventory with a selling price of $75,000 on account. The cost of the inventory sold is $50,000. The journal entry (entries) to record the sale is (are) ________.

Beginning inventory + Net Purchases = Cost of Goods Sold.

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

Extenssion: Ol Revenue Recognition Previous Standard

Short-Term Operating Assets: Cash and Receivables

Long-Term Operating Assets: Acquisition, Cost Allocation

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Leases

Extension: Ol Accounting for Leases Current Standard

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

The Statement of Cash Flows

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