Exam 6: Inventories

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

Under the FIFO method, the costs of the earliest units purchased are the first charged to cost of goods sold.

The term "FOB" denotes

Jenner Company had beginning inventory of $90,000, ending inventory of $110,000, cost of goods sold of $400,000, and sales of $660,000. Jenner's days in inventory is:

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 Bueno keeps perpetual inventory records, inventory at July 31 on a moving-average basis is

In a perpetual inventory system, the cost of goods sold under the FIFO method is based on the cost of the latest goods on hand during the period.

Quigley Company's records indicate the following information for the year: On December 31, a physical inventory determined that ending inventory of ₤720,000 was in the warehouse. Quigley's gross profit on sales has remained constant at 30%. Quigley suspects some of the inventory may have been taken by some new employees. At December 31, what is the estimated cost of missing inventory?

Kershaw Bookstore had 800 units on hand at January 1, costing €18 each. Purchases and sales during the month of January were as follows: Kershaw does not maintain perpetual inventory records. According to a physical count, 600 units were on hand at January 31. The cost of the inventory at January 31, under the LIFO method is:

Inventory turnover is calculated as cost of goods sold divided by ending inventory.

Wade Company prepares monthly financial statements and uses the gross profit method to estimate ending inventories. Historically, the company has had a 40% gross profit rate. During June, net sales amounted to $80,000; the beginning inventory on June 1 was $24,000; and the cost of goods purchased during June amounted to $36,000. The estimated cost of Wade Company's inventory on June 30 is

Inventory items on an assembly line in various stages of production are classified as

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 following accounts are included in the ledger of Dean Company: Advertising expense Freight-in Inventory Purchases Purchase returns and allowances Sales revenue Sales returns and allowances Which of the accounts would be included in calculating cost of goods sold?

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. Deitrich's gross profit for the month of May is

The accounting principle that requires that the cost flow assumption be consistent with the physical movement of goods is

In applying the LIFO assumption in a perpetual inventory system, the cost of the units most recently purchased prior to sale is allocated first to the units sold.

Oakley Supply Company reports net income of $120,000 in 2014. The ending inventory did not include goods valued at $7,000 that Oakley had consigned to Roberta's Gift Shop. (1) What is the correct net income for 2014? (2) What impact will this error have on the statement of financial position at 12/31/14?