A) only the statement of financial position. B) only the income statement. C) both the statement of financial position and the income statement. D) neither the statement of financial position nor the income statement. A) only the statement of financial position. B) only the income statement. C) both the statement of financial position and the income statement. D) neither the statement of financial position nor the income statement.

Exam 6: Inventories

Purdy Company is in the electronics industry and the price it pays for inventory is decreasing. Instructions Indicate which inventory method will: a. provide the lowest ending inventory. b. provide the highest cost of goods sold. c. result in the highest net income. d. result in the lowest income tax expense. e. produce the most stable earnings over several years.

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Question 81

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.

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Question 82

Transactions that affect inventories on hand have an effect on both the statement of financial position and the income statement.

(True/False)

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Question 83

Widner Company understated its inventory by $10,000 at December 31, 2013. It did not correct the error in 2013 or 2014. As a result, Widner's equity was:

(Multiple Choice)

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Question 84

Inventories affect

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Question 85

Hoyt Company's inventory records show the following data for the month of September: A physical inventory on September 30 shows 200 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses LIFO inventory costing and a periodic inventory system.

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Question 86

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.

(True/False)

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Question 87

The inventory of Pedigo Company was destroyed by fire on April 1. From an examination of the accounting records, the following data for the first three months of the year are obtained: Instructions Determine the merchandise lost by fire, assuming a beginning inventory of $60,000 and a gross profit rate of 40% on net sales.

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Question 88

If the unit cost of inventory has continuously increased, the , first-out inventory valuation method will result in a higher valued ending inventory than if the , first-out method had been used.

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Question 89

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Linden Watch Company reported the following income statement data for a 2-year period. Linden uses a periodic inventory system. The inventories at January 1, 2013, and December 31, 2014, are correct. However, the ending inventory at December 31, 2013, was overstated $5,000. Instructions (a) Prepare correct income statement data for the 2 years. (b) What is the cumulative effect of the inventory error on total gross profit for the 2 years?

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Question 90

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 FIFO? (rounded to whole dollars)

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Question 91

Kegin Company sells many products. Whamo is one of its popular items. Below is an analysis of the inventory purchases and sales of Whamo for the month of March. Kegin Company uses the periodic inventory system. Instructions (a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for March. (Show computations) (b) Using the weighted average method, calculate the amount assigned to the inventory on hand on March 31. (Show computations) (c) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31. (Show computations)

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Question 92

For the current month, the beginning inventory of Elipresse Inc. consisted of 3 units that cost CHF5,500 each. During the month, the company made two purchases: 4 units at CHF5,800 each and 1 units at CHF5,750. Elipresse sold 5 units during the month. If Elipresse uses specific identification and wishes to maximize net income, the units costs allocated to cost of goods sold will be:

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Question 93

Toso Company uses the periodic inventory system to account for inventories. Information related to Toso Company's inventory at October 31 is given below: Instructions 1. Show computations to value the ending inventory using the FIFO cost assumption if 550 units remain on hand at October 31. 2. Show computations to value the ending inventory using the weighted-average cost method if 550 units remain on hand at October 31. 3. Show computations to value the ending inventory using the LIFO cost assumption if 550 units remain on hand at October 31.

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Question 94

Under the LCNRV approach, the net realizable value is defined as

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Question 95

Accounting for inventories under IFRS is very similar to accounting under GAAP.

(True/False)

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Question 96

Boyer Company applied FIFO to its inventory and got the following results for its ending inventory. The cost of purchasing units at year-end was VCRs $71, DVD players $72, and iPods $78. Instructions Determine the amount of ending inventory at lower-of-cost-or-net realizable value.

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Question 97

Merchandise inventory is

(Multiple Choice)

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Question 98

The lower-of-cost-or-net realizable value basis of valuing inventories is an example of

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Question 99

In a period of falling prices, which inventory method would result in the lowest tax burden?

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Question 100

Showing 81 - 100 of 257

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.

Transactions that affect inventories on hand have an effect on both the statement of financial position and the income statement.

Widner Company understated its inventory by $10,000 at December 31, 2013. It did not correct the error in 2013 or 2014. As a result, Widner's equity was:

Inventories affect

Hoyt Company's inventory records show the following data for the month of September: A physical inventory on September 30 shows 200 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses LIFO inventory costing and a periodic inventory system.

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.

If the unit cost of inventory has continuously increased, the , first-out inventory valuation method will result in a higher valued ending inventory than if the , first-out method had been used.

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 FIFO? (rounded to whole dollars)

Under the LCNRV approach, the net realizable value is defined as

Accounting for inventories under IFRS is very similar to accounting under GAAP.

Boyer Company applied FIFO to its inventory and got the following results for its ending inventory. The cost of purchasing units at year-end was VCRs $71, DVD players $72, and iPods $78. Instructions Determine the amount of ending inventory at lower-of-cost-or-net realizable value.

Merchandise inventory is

The lower-of-cost-or-net realizable value basis of valuing inventories is an example of

In a period of falling prices, which inventory method would result in the lowest tax burden?

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

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.

Transactions that affect inventories on hand have an effect on both the statement of financial position and the income statement.

Widner Company understated its inventory by $10,000 at December 31, 2013. It did not correct the error in 2013 or 2014. As a result, Widner's equity was:

Inventories affect

Hoyt Company's inventory records show the following data for the month of September: A physical inventory on September 30 shows 200 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses LIFO inventory costing and a periodic inventory system.

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.

If the unit cost of inventory has continuously increased, the ______________, first-out inventory valuation method will result in a higher valued ending inventory than if the ______________, first-out method had been used.

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 FIFO? (rounded to whole dollars)

Under the LCNRV approach, the net realizable value is defined as

Accounting for inventories under IFRS is very similar to accounting under GAAP.

Boyer Company applied FIFO to its inventory and got the following results for its ending inventory. The cost of purchasing units at year-end was VCRs $71, DVD players $72, and iPods $78. Instructions Determine the amount of ending inventory at lower-of-cost-or-net realizable value.

Merchandise inventory is

The lower-of-cost-or-net realizable value basis of valuing inventories is an example of

In a period of falling prices, which inventory method would result in the lowest tax burden?

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

If the unit cost of inventory has continuously increased, the , first-out inventory valuation method will result in a higher valued ending inventory than if the , first-out method had been used.