Exam 6: Inventories

Of the following companies, which one would not likely employ the specific identification method for inventory costing?

Whitmore Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should be included or excluded from the inventory taking. 1. Goods shipped on consignment by Whitmore to another company. 2. Goods in transit from a supplier shipped FOB destination. 3. Goods shipped via common carrier to a customer with terms FOB shipping point. 4. Goods held on consignment from another company.

If the inventory reported on a Gottleib Company's statement of financial position at December 31, 2013 is overstated by €1,200,000, the company's retained earnings balance at December 31, 2014 will be

At December 31, 2014, Murchi Company reported total assets of Rs22,320,000, including inventory of Rs5,580,000 and net income of Rs7,365,600 for 2014. The reported inventory was overstated by Rs1,020,000. Which of the following is true with regard to Murchi's 2014 financial statements (ignore income taxes)?

Graham Company uses a periodic inventory system. Details for the inventory account for the month of January, 2014 are as follows: An end of the month (1/31/14) inventory showed that 120 units were on hand. How many units did the company sell during January 2014?

Neiderhoff Inc. uses the retail inventory method to value its merchandise inventory. The following information is available for 2014: What is Neiderhoff's estimated ending inventory at cost?

All inventories are reported as current assets on the statement of financial position.

Major Grey Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year: What cost to retail ratio should be used to estimate ending inventory?

Linville Company had beginning inventory on May 1 of €12,000. During the month, the company made purchases of €30,000 but returned €2,000 of goods because they were defective. At the end of the month, the inventory on hand was valued at €10,500. Calculate cost of goods available for sale and cost of goods sold for the month.

GAAP requires the following

The accountant at Paige Company is figuring out the difference in income taxes the company will pay depending on the choice of either FIFO or average-cost as an inventory costing method. The tax rate is 30% and the FIFO method will result in income before taxes of $18,200. The average-cost method will result in income before taxes of $16,450. What is the difference in tax that would be paid between the two methods?

Holliday Company's inventory records show the following data: A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for ₤3 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. If the company uses FIFO, what is the gross profit for the period?

Beginning inventory plus the cost of goods purchased equals

In a period of rising prices, if a company uses the FIFO cost flow assumption, income tax expense will be lower than if they used average-costing.

At December 31, 2014, the following information was available for Fife Company: ending inventory $22,600; beginning inventory $21,400; cost of goods sold $198,000; and sales revenue $330,000. Calculate the inventory turnover ratio and days in inventory for Fife.

Goods in transit should be included in the inventory of the buyer when the

The specific identification method of costing inventories tracks the actual physical flow of the goods available for sale.

Chang Company took a physical inventory at December 31, 2013 and determined that ¥3,950,000 of goods were on hand. Included in the count was inventory of ¥700,000 on consignment from Keiko Company. On December 30, Chang sold and shipped F.o.b. destination ¥820,000 worth of inventory. These goods arrived at the buyer's place of business on January 2, 2014. What amount should Chang report for inventory on its December 31, 2013 statement of financial position?

A company just starting business made the following four inventory purchases in June: A physical count of merchandise inventory on June 30 reveals that there are 100 units on hand. The inventory method which results in the highest gross profit for June is

Swiss-Mart Company's beginning inventory balance and purchase and sales transactions for the month of June were as follows: Assuming that Swiss-Mart keeps perpetual inventory records, the inventory at June 30 on a FIFO basis is