Question 1

A periodic inventory system requires a physical count of its inventory once a month.

Accepted Answer

A) True 
 B)False  False

Question 2

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.

Accepted Answer

A)  $7,500 
B)  $30,000 
C)  $22,500 
D)  $12,500 
E)  None of these 
A)  $7,500 
B)  $30,000 
C)  $22,500 
D)  $12,500 
E)  None of these A

Question 3

Inventory value means the flow of costs does not always match the flow of goods.

Accepted Answer

A) True 
 B)False  True

Question 4

Melissa's Dress Shop's inventory at cost on January 1 was $19,400. Its retail value was $36,000. During the year, additional net purchases at a cost of $42,600 were brought in. Its retail value was $64,000. The net sales for the year were $70,000. Melissa's inventory at cost by the retail method is:

Accepted Answer

A)  $30,000 
B)  $18,600 
C)  $18,000 
D)  $12,400 
E)  None of these 
A)  $30,000 
B)  $18,600 
C)  $18,000 
D)  $12,400 
E)  None of these

Question 5

Perpetual inventory does not have this characteristic:

Accepted Answer

A)  High price, limited inventory 
B)  Verified at some point by a physical count 
C)  Low price, large inventory 
D)  Utilizes scanners, computers, etc. 
E)  None of these 
A)  High price, limited inventory 
B)  Verified at some point by a physical count 
C)  Low price, large inventory 
D)  Utilizes scanners, computers, etc. 
E)  None of these

Question 6

Given the following information, you have been requested by your supervisor to submit the cost of ending inventory under LIFO, FIFO, and weighted average. At year end 850 units remained in inventory.

Accepted Answer

The answer of Given the following information, you have been...

Question 7

Inventory turnover at retail is equal to net sales divided by:

Accepted Answer

A)  Beginning inventory at retail 
B)  Average inventory at retail 
C)  Beginning inventory at cost 
D)  Average inventory at cost 
E)  None of these 
A)  Beginning inventory at retail 
B)  Average inventory at retail 
C)  Beginning inventory at cost 
D)  Average inventory at cost 
E)  None of these

Question 8

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?

Accepted Answer

A)  $250 
B)  $850 
C)  $350 
D)  $1,350 
E)  None of these 
A)  $250 
B)  $850 
C)  $350 
D)  $1,350 
E)  None of these

Question 9

Bob's Clothing Shop's inventory at cost was $30,000 on January 1. Its retail value is $42,000. During the year, Bob's Clothing Shop purchased additional merchandise at a cost of $196,000 with a retail value of $368,000. The net sales at retail for the year were $310,000. Calculate Bob's inventory at cost by the retail method. Round the cost ratio to the nearest whole percent.

Accepted Answer

The answer of Bob's Clothing Shop's inventory at cost was...

Question 10

Stone Company uses the LIFO method. At the end of the period there are 22 units left in inventory. Given the following, the cost of ending inventory is:

Accepted Answer

A)  $1,400 
B)  $3,200 
C)  $1,530 
D)  $3,150 
E)  None of these 
A)  $1,400 
B)  $3,200 
C)  $1,530 
D)  $3,150 
E)  None of these

Question 11

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

Accepted Answer

A)  $7,600 
B)  $7,280 
C)  $3,120 
D)  $3,400 
E)  None of these 
A)  $7,600 
B)  $7,280 
C)  $3,120 
D)  $3,400 
E)  None of these

Question 12

Calculate inventory turnover at cost (to nearest hundredth):
   2.15

Accepted Answer

The answer of Calculate inventory turnover at cost (to nearest...

Question 13

Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is:

Accepted Answer

A)  $28.00 
B)  $12.00 
C)  $21.00 
D)  $3.50 
E)  None of these 
A)  $28.00 
B)  $12.00 
C)  $21.00 
D)  $3.50 
E)  None of these

Question 14

Calculate estimated cost of ending inventory using the gross profit method:

Accepted Answer

The answer of Calculate estimated cost of ending inventory using...

Question 15

Ron Co. has a gross profit on sales of 42%. On November 1, 2011, beginning inventory was $9,000. Net purchases for the month were $35,000. Assuming Ron has retail sales of $60,000 in November, what is the estimated cost of ending inventory using the gross profit method?

Accepted Answer

The answer of Ron Co. has a gross profit on...

Question 16

The gross profit method is a way to estimate the cost of ending inventory without a physical count.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  $10 
B)  $14 
C)  $140 
D)  14.10 
E)  None of these 
A)  $10 
B)  $14 
C)  $140 
D)  14.10 
E)  None of these

Question 18

With net sales of $40,000, beginning inventory at retail of $14,000, ending inventory at retail of $20,000, and cost of goods sold of $19,500, the inventory turnover at retail is (to the nearest hundredth):

Accepted Answer

A)  5.15 
B)  3.25 
C)  2.35 
D)  5.23 
E)  None of these 
A)  5.15 
B)  3.25 
C)  2.35 
D)  5.23 
E)  None of these

Question 19

A perpetual inventory system continually updates inventory records.

Accepted Answer

A) True 
 B)False

Question 20

Calculate using retail method:

Accepted Answer

The answer of Calculate using retail method:
  ...

A periodic inventory system requires a physical count of its inventory once a month.

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.

Inventory value means the flow of costs does not always match the flow of goods.

Melissa's Dress Shop's inventory at cost on January 1 was $19,400. Its retail value was $36,000. During the year, additional net purchases at a cost of $42,600 were brought in. Its retail value was $64,000. The net sales for the year were $70,000. Melissa's inventory at cost by the retail method is:

Perpetual inventory does not have this characteristic:

Given the following information, you have been requested by your supervisor to submit the cost of ending inventory under LIFO, FIFO, and weighted average. At year end 850 units remained in inventory.

Inventory turnover at retail is equal to net sales divided by:

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?

Stone Company uses the LIFO method. At the end of the period there are 22 units left in inventory. Given the following, the cost of ending inventory is:

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

Calculate inventory turnover at cost (to nearest hundredth): 2.15

Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is:

Calculate estimated cost of ending inventory using the gross profit method:

Ron Co. has a gross profit on sales of 42%. On November 1, 2011, beginning inventory was $9,000. Net purchases for the month were $35,000. Assuming Ron has retail sales of $60,000 in November, what is the estimated cost of ending inventory using the gross profit method?

The gross profit method is a way to estimate the cost of ending inventory without a physical count.

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

With net sales of $40,000, beginning inventory at retail of $14,000, ending inventory at retail of $20,000, and cost of goods sold of $19,500, the inventory turnover at retail is (to the nearest hundredth):

A perpetual inventory system continually updates inventory records.

Calculate using retail method:

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

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Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Sales, Excise, and Property Taxes

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Exam 18: Inventory and Overhead

A periodic inventory system requires a physical count of its inventory once a month.

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.

Inventory value means the flow of costs does not always match the flow of goods.

Perpetual inventory does not have this characteristic:

Given the following information, you have been requested by your supervisor to submit the cost of ending inventory under LIFO, FIFO, and weighted average. At year end 850 units remained in inventory.

Inventory turnover at retail is equal to net sales divided by:

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?

Stone Company uses the LIFO method. At the end of the period there are 22 units left in inventory. Given the following, the cost of ending inventory is:

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

Calculate inventory turnover at cost (to nearest hundredth): 2.15

Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is:

Calculate estimated cost of ending inventory using the gross profit method:

Ron Co. has a gross profit on sales of 42%. On November 1, 2011, beginning inventory was $9,000. Net purchases for the month were $35,000. Assuming Ron has retail sales of $60,000 in November, what is the estimated cost of ending inventory using the gross profit method?

The gross profit method is a way to estimate the cost of ending inventory without a physical count.

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

With net sales of $40,000, beginning inventory at retail of $14,000, ending inventory at retail of $20,000, and cost of goods sold of $19,500, the inventory turnover at retail is (to the nearest hundredth):

A perpetual inventory system continually updates inventory records.

Calculate using retail method:

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Sales, Excise, and Property Taxes

Filters