Exam 6: Inventories

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

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Question 201

Euler Company made an inventory count on December 31, 2014. During the count, one of the clerks made the error of counting an inventory item twice. For the statement of financial position at December 31, 2014, the effects of this error are

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Question 202

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. Using the LIFO inventory method, the value of the ending inventory on June 30 is

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Question 203

A major advantage of LIFO is that the inventory reported on the statement of financial position will approximate current cost.

(True/False)

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Question 204

The first-in, first-out (FIFO) inventory method results in an ending inventory valued at the most recent cost.

(True/False)

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Question 205

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 after-tax income using FIFO? (rounded to whole dollars)

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Question 206

Bueno Company's purchase and sales transactions for the month of July were as follows: The company sold 8,000 units on July 22. Assuming that the Bueno keeps perpetual inventory records, July's cost of goods sold on a FIFO basis is

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Question 207

Franco Company uses the FIFO inventory method. Its 2014, the company reported net income of €820,000. Had average-cost been used, the company would have reported net income of €760,000. Assuming a 40% tax rate, what is the impact of the inventory cost flow assumption on Franco's taxes for 2014?

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Question 208

Brocken Co. has the following data related to an item of inventory: The value assigned to cost of goods sold if Brocken uses FIFO is

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Question 209

Flott Department Store prepares monthly financial statements but only takes a physical count of merchandise inventory at the end of the year. The following information has been developed for the month of July: The net sales for July amounted to $140,000. Instructions Use the retail inventory method to estimate the ending inventory at cost for July. Show all computations to support your answer.

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Question 210

Goods out on consignment should be included in the inventory of the consignor.

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Question 211

If a company has no beginning inventory and the unit price of inventory is increasing during a period, the cost of goods available for sale during the period will be the same under the average-cost and FIFO inventory methods.

(True/False)

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Question 212

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?

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Question 213

At May 1, 2014, Deitrich Company had beginning inventory consisting of 200 units with a unit cost of €3.50. During May, the company purchased inventory as follows: 400 units at €3.50 600 units at €4.00 The company sold 1,000 units during the month for €6 per unit. Deitrich uses the average-cost method. The average cost per unit for May is

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Question 214

Bosio Corporation's computation of cost of goods sold is: Bosio's inventory turnover is

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Question 215

In a manufacturing company, goods that are ready to be sold to customers are referred to as __, whereas in a merchandising company they are generally referred to as _.

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Question 216

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Finch Company is preparing the annual financial statements dated December 31, 2014. Information about inventory stocked for regular sale follows: Compute the valuation for the December 31, 2014, inventory using the lower-of-cost-or-net realizable value basis.

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Question 217

The following information was available for Hoover Company at December 31, 2014: beginning inventory $110,000; ending inventory $70,000; cost of goods sold $880,000; and sales $1,200,000. Hoover's inventory turnover ratio in 2014 was

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Question 218

Inventory costs are allocated to __ and cost of goods .

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Question 219

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

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Question 220

Showing 201 - 220 of 257

Euler Company made an inventory count on December 31, 2014. During the count, one of the clerks made the error of counting an inventory item twice. For the statement of financial position at December 31, 2014, the effects of this error are

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. Using the LIFO inventory method, the value of the ending inventory on June 30 is

A major advantage of LIFO is that the inventory reported on the statement of financial position will approximate current cost.

The first-in, first-out (FIFO) inventory method results in an ending inventory valued at the most recent cost.

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 after-tax income using FIFO? (rounded to whole dollars)

Bueno Company's purchase and sales transactions for the month of July were as follows: The company sold 8,000 units on July 22. Assuming that the Bueno keeps perpetual inventory records, July's cost of goods sold on a FIFO basis is

Franco Company uses the FIFO inventory method. Its 2014, the company reported net income of €820,000. Had average-cost been used, the company would have reported net income of €760,000. Assuming a 40% tax rate, what is the impact of the inventory cost flow assumption on Franco's taxes for 2014?

Brocken Co. has the following data related to an item of inventory: The value assigned to cost of goods sold if Brocken uses FIFO is

Goods out on consignment should be included in the inventory of the consignor.

If a company has no beginning inventory and the unit price of inventory is increasing during a period, the cost of goods available for sale during the period will be the same under the average-cost and FIFO inventory methods.

Bosio Corporation's computation of cost of goods sold is: Bosio's inventory turnover is

In a manufacturing company, goods that are ready to be sold to customers are referred to as __, whereas in a merchandising company they are generally referred to as _.

Finch Company is preparing the annual financial statements dated December 31, 2014. Information about inventory stocked for regular sale follows: Compute the valuation for the December 31, 2014, inventory using the lower-of-cost-or-net realizable value basis.

The following information was available for Hoover Company at December 31, 2014: beginning inventory $110,000; ending inventory $70,000; cost of goods sold $880,000; and sales $1,200,000. Hoover's inventory turnover ratio in 2014 was

Inventory costs are allocated to __ and cost of goods .

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

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting and Financial Reporting for Contingent Liabilities and Leases

Filters

Exam 6: Inventories

Euler Company made an inventory count on December 31, 2014. During the count, one of the clerks made the error of counting an inventory item twice. For the statement of financial position at December 31, 2014, the effects of this error are

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. Using the LIFO inventory method, the value of the ending inventory on June 30 is

A major advantage of LIFO is that the inventory reported on the statement of financial position will approximate current cost.

The first-in, first-out (FIFO) inventory method results in an ending inventory valued at the most recent cost.

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 after-tax income using FIFO? (rounded to whole dollars)

Bueno Company's purchase and sales transactions for the month of July were as follows: The company sold 8,000 units on July 22. Assuming that the Bueno keeps perpetual inventory records, July's cost of goods sold on a FIFO basis is

Franco Company uses the FIFO inventory method. Its 2014, the company reported net income of €820,000. Had average-cost been used, the company would have reported net income of €760,000. Assuming a 40% tax rate, what is the impact of the inventory cost flow assumption on Franco's taxes for 2014?

Brocken Co. has the following data related to an item of inventory: The value assigned to cost of goods sold if Brocken uses FIFO is

Goods out on consignment should be included in the inventory of the consignor.

If a company has no beginning inventory and the unit price of inventory is increasing during a period, the cost of goods available for sale during the period will be the same under the average-cost and FIFO inventory methods.

Bosio Corporation's computation of cost of goods sold is: Bosio's inventory turnover is

In a manufacturing company, goods that are ready to be sold to customers are referred to as ________________, whereas in a merchandising company they are generally referred to as _______________.

Finch Company is preparing the annual financial statements dated December 31, 2014. Information about inventory stocked for regular sale follows: Compute the valuation for the December 31, 2014, inventory using the lower-of-cost-or-net realizable value basis.

The following information was available for Hoover Company at December 31, 2014: beginning inventory $110,000; ending inventory $70,000; cost of goods sold $880,000; and sales $1,200,000. Hoover's inventory turnover ratio in 2014 was

Inventory costs are allocated to ______________ and cost of goods ____________.

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

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting and Financial Reporting for Contingent Liabilities and Leases

Filters

In a manufacturing company, goods that are ready to be sold to customers are referred to as __, whereas in a merchandising company they are generally referred to as _.

Inventory costs are allocated to __ and cost of goods .