Exam 18: Inventory and Overhead

Johnson Co. uses the retail inventory method. From the following data what is the estimated ending inventory at cost? Net purchases at cost $33,000, beginning inventory at cost $27,000, beginning inventory at retail $35,000, net purchases at retail $45,000, retail sales $70,000.

During inflation, LIFO produces the highest possible income for a company.

Companies with homogeneous products might use the weighted-average method.

The cost flow tends to follow the physical flow when FIFO is used.

A company can change from LIFO to FIFO without notifying the Internal Revenue Service.

Crestwood Paint Supply had a beginning inventory of 10 cans of paint at $25.00 per can. They purchased 20 cans during the month at $30.00 per can. They had an ending inventory valued at $500. How much paint in dollars was used for the month?

Given the following: LIFO method 250 units left in inventory The cost of ending inventory is:

With Department A sales of $200,000, Department B sales of $600,000, and overhead expense to be allocated of $25,000, the distribution of overhead to Department A based on sales is:

LIFO doesn't always match the physical flow of goods but still can be used to calculate the flow of costs.

Moss Co. uses the FIFO method to calculate ending inventory. Assuming 300 units are not sold, the cost of goods sold is:

Bauer Supply had total cost of goods sold of $1,400 with 140 units available for sales. What was the average cost per unit?

The specific identification method is able to identify in the ending inventory the actual invoice cost associated with it.

The weighted-average method is best used:

Overhead expenses are:

During inflation, the best method to use in inventory valuation that produces the smallest amount of profit is:

With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is: