Exam 6: Inventories

Bellingham Inc. took a physical inventory at the end of the year and calculated that £1,450,000 of goods were on hand. Bellingham determined that £25,000 of goods were in transit. The goods were shipped F.o.b. shipping point and were received by Bellingham two days after the inventory count. The company also had £275,000 of goods out on consignment. What amount should Bellingham report for inventory on its statement of financial position?

The consistent application of an inventory costing method is essential for

If an error understates the beginning inventory, net income will also be understated.

Keiko Company took a physical inventory at December 31, 2013 and determined that ¥3,530,000 of goods were on hand. In addition, the company had goods consigned with Chang Company that had a cost of ¥700,000. On December 29, Keiko sold and shipped F.o.b. shipping point ¥600,000 worth of inventory. These goods arrived at the buyer's place of business on January 4, 2014. What amount should Keiko report as inventory on its December 31, 2013 statement of financial position?

Which inventory costing method most closely approximates current cost for each of the following?

In a period of falling prices, the cost flow method that results in the lowest income taxes is the

At December 31, 2014, Bosan Corporation has 4,900 units of model 63 and 3,500 units of model 64 in its ending inventory. Specific data with respect to each product follows: What amount will be reported for inventory on Boson's statement of financial position after the company applies LCNRV?

Tucker Department Store utilizes the retail inventory method to estimate its inventories. It calculated its cost to retail ratio during the period at 75%. Goods available for sale at retail amounted to $800,000 and goods were sold during the period for $500,000. The estimated cost of the ending inventory is

The term "FOB" denotes

Lee Industries had the following inventory transactions occur during 2014: The company sold 204 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using LIFO? (rounded to whole dollars)

The manager of Yates Company is given a bonus based on income before income taxes. Net income, after taxes, is $10,500 for FIFO and $9,450 for average-cost. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of average-cost?

Colletti Company recorded the following data: The weighted average unit cost of the inventory at January 31 is:

Goods that have been purchased FOB destination but are in transit, should be excluded from a physical count of goods.

Compute the lower-of-cost-or-net realizable value valuation for Aber Company's total inventory based on the following:

Tatsoi Company's purchase and sales transactions for the month of May were as follows: Assuming that Tatsoi keeps perpetual inventory records, the ending inventory on a FIFO basis is

In a manufacturing business, inventory that is ready for sale is called

Merchandise inventory is

Carlsberg Corporation has 2,000 units of product#1and 4,000 units of product#2 in its inventory at December 31, 2014. Specific data with respect to each product follows: What amount will be reported on the company statement of financial position at December 31, 2014 for ending inventory using lower-of-cost-or-net realizable value?

Neighborly Industries has the following inventory information. Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a LIFO basis?

Sawyer Company uses the perpetual inventory system and the moving-average method to value inventories. On August 1, there were 10,000 units valued at $50,000 in the beginning inventory. On August 10, 20,000 units were purchased for $10 per unit. On August 15, 24,000 units were sold for $20 per unit. The amount charged to cost of goods sold on August 15 was