Exam 7: Inventory

Use the following information for questions: Berenger Industries had the following activity with one of its inventory items during the current period: Units Unit Cost Beginning inventory 30 \ 8.00 Purchase October 5 80 10.50 Sale October 11 (40) Purchase October 17 60 12.00 Sale October 26 (70) -Using a perpetual inventory system and the FIFO cost flow assumption, the ending inventory was valued at:

In 2011 Borger Inc.had beginning inventory of $106,000, purchases of $1,126,500, ending inventory of $116,000, accounts payable of $49,605, and sales of $2,147,250.Inventory turnover for 2011 was closest to:

Which of the following cost flow assumptions would be most appropriate when the inventory units are unique or costly?

In a manufacturing process overhead costs are added to which inventory account?

When using the LCM rule in Canada the market value is most commonly:

Under the FIFO inventory assumption the cost of ending inventory and cost of goods sold will be the same under both the perpetual and periodic inventory systems.

Use the following information for questions: A company had the following inventory activity during January: Units Unit Cost Total Cost Beginning inventory 800 \ 10.00 \ 8,000 Purchase: January 5 1,400 11.00 15,400 Sale: January 8 (1,500) Purchase: January 13 900 10.50 9,450 Sales: January 24 (900) -If the company is using a perpetual system and the moving average costing assumption, what is the cost of goods sold closest to?

Which of the following statements about the FIFO cost assumption is true?

The following amounts are always known under which inventory costing system? Current inventory Cost of goods sold Inventory shrinkage a. Periodic Periodic Perpetual b. Perpetual Perpetual Periodic c. Perpetual Perpetual Perpetual d. Periodic Periodic Periodic

All of the following are manufacturing accounts except for:

Effective inventory management would have one person place the order for new inventory, a second person check it against the purchase order when it arrives and a third person record the receipt of inventory in the accounting records.The purpose of this system is: A)to reduce spoilage. C)to guard against stock-outs. D)to guard against internal theft and collusion. E)to reduce storage costs.

Which of the following would most likely use a periodic inventory system?

When a periodic inventory system is used:

Francine Ltd.had beginning inventory of $10,000 and purchased $75,000 during 2011.The company had sales of $90,000 and has traditionally had a cost-to-sales ratio of 75%.Using the gross margin estimation method, the company estimates its ending inventory to be:

IFRS standards require that a firm select the cost flow assumption that:

The bar scanners in a grocery store are most likely used to track:

Perpetual inventory systems provide more timely information than periodic systems.

Which of the following is true under a periodic system:

When a perpetual inventory system is used:

Net realizable value is also known as the: