Exam 7: Merchandise Inventory

The following information comes from the annual reports of Devin Designs. Beginning irventary ? ? 2,250 Purchases 12,652 ? ? Goods available for sale ? ? 12,899 Ending irventary ? 2,662 ? Cost of goods sald 12,213 10,908 10,490 What is the ending inventory amount for 2015?

Which one of the following expenditures should not be included in the cost of inventory?

Kemp Clothing has cost of goods sold of $14,000 with beginning and ending inventories of $4,000 and $2,000, respectively. Purchases during the period are:

Parker Books purchased 200 books, paying $10 each. Parker paid the $40 shipping costs and $30 binding repair fees so that those books could be sold. How much is the cost of inventory?

The following information comes from the annual reports of Devin Designs. Beginning irventary ? ? 2,250 Purchases 12,652 ? ? Goods available for sale ? ? 12,899 Ending irventary ? 2,662 ? Cost of goods sald 12,213 10,908 10,490 What is the beginning inventory amount for 2016?

During a year of falling prices, which cost flow assumption would measure the strongest cash flow position?

Use the information that follows concerning Yarley's Gift Store to answer problems Grandma's Gift Store uses the periodic inventory method. nventory and purchase information for July is as follows: July 1 Beginning inventory 500@\ 4 July 10 Purchase 800@\ 5 July 31 Ending inventory 300 -Grandma's Gift Store uses the FIFO cost flow assumption. Calculate its cost of goods sold for the month of July and its ending inventory at July 31.

Which one of the following expenditures should not be included in the cost of inventory?

The following information comes from the annual reports of Devin Designs. Beginning irventary ? ? 2,250 Purchases 12,652 ? ? Goods available for sale ? ? 12,899 Ending irventary ? 2,662 ? Cost of goods sald 12,213 10,908 10,490 What is the ending inventory amount for 2017?

Identify the options a manager has in measuring the cost of inventory as it flows through the accounting system.

The following information comes from the annual reports of Devin Designs. Beginning irventary ? ? 2,250 Purchases 12,652 ? ? Goods available for sale ? ? 12,899 Ending irventary ? 2,662 ? Cost of goods sald 12,213 10,908 10,490 What is the amount of goods available for sale for 2016?

Dakota Industries has two items in inventory as of December 31, 2015. Each item was purchased for $52. Company management chose to write down Item #1 to $39, which at year-end was assessed to be its market value. Management did not write down Item #2 because its market value was estimated to be greater than $52. During 2016, each item was sold for $63 cash. If Dakota uses the perpetual inventory method, which of the following would be included in the entry or entries to record the sale of Item #1?

Specific identification is a method of accounting for inventory:

Under the lower-of-cost-or-market rule, market is:

The following information comes from the annual reports of Devin Designs. Beginning irventary ? ? 2,250 Purchases 12,652 ? ? Goods available for sale ? ? 12,899 Ending irventary ? 2,662 ? Cost of goods sald 12,213 10,908 10,490 What is the amount of purchases for 2016?

Under generally accepted accounting principles, a company can choose a cost flow assumption for valuing cost of goods sold that can result in different income reporting. However, it can't frequently change the cost flow assumption adopted in order to measure the highest income possible because of the:

Determine the amount of inventory to report on Bradley's balance sheet at January 31 under the LIFO cost flow assumption.

Grey Manufacturing had the following transaction: .Grey received an order to sell inventory with a cost of $50,000, and debited Accounts Receivable and credited Sales. The goods were shipped to the customer on December 31, 2017, and received on January 2, 2018. If the terms of the sale were FOB shipping point and Grey included all these items in its ending inventory of 12/31/17, which of the following is the best statements regarding this treatment?

Use the information that follows concerning Yarley's Gift Store to answer problems Grandma's Gift Store uses the periodic inventory method. nventory and purchase information for July is as follows: July 1 Beginning inventory 500@\ 4 July 10 Purchase 800@\ 5 July 31 Ending inventory 300 -Grandma's Gift Store uses the Average cost flow assumption. Calculate its cost of goods sold for July and its inventory at July 31. Round average cost per unit to 3 decimal places.