The inventory data for an item for November are: \[\begin{array} { r l l } \text { Nov. } 1 & \text { Inventory } & 20 \text { units at } \$ 19 \\ 4 & \text { Sold } & 10 \text { units } \\ 10 & \text { Purchased } & 30 \text { units at } \$ 20 \\ 17 & \text { Sold } & 20 \text { units } \\ 30 & \text { Purchased } & 10 \text { units at } \$ 21 \end{array}\] Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO?

A) $610 B) $600 C) $590 D) $580 A) $610 B) $600 C) $590 D) $580

Use the information below to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. \[\begin{array} { | l | l | l | l | } \hline \text { Date } & { \text { Blankets } } & \text { Units } & \text { Cost } \\ \hline { \text { May } 3 } & \text { Purchase } & 5 & \$ 20 \\ \hline 10 & \text { Sale } & 3 & \\ \hline 17 & \text { Purchase } & 10 & \$ 24 \\ \hline 20 & \text { Sale } & 6 & \\ \hline 23 & \text { Sale } & 3 & \\ \hline 30 & \text { Purchase } & 10 & \$ 30 \\ \hline \end{array}\] -Assuming that the company uses the perpetual inventory system, determine the ending inventory value for the month of May using the FIFO inventory cost method.

A) $364 B) $372 C) $324 D) $320 A) $364 B) $372 C) $324 D) $320

The inventory data for an item for November are: \[\begin{array} { r l l } \text { Nov. } 1 & \text { Inventory } & 20 \text { units at } \$ 19 \\ 4 & \text { Sold } & 10 \text { units } \\ 10 & \text { Purchased } & 30 \text { units at } \$ 20 \\ 17 & \text { Sold } & 20 \text { units } \\ 30 & \text { Purchased } & 10 \text { units at } \$ 21 \end{array}\] Using a perpetual system, what is the cost of the merchandise sold for November if the company uses LIFO?

A) $610 B) $600 C) $590 D) $580 A) $610 B) $600 C) $590 D) $580

Use the information below to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. \[\begin{array} { | l | l | l | l | } \hline \text { Date } & { \text { Blankets } } & \text { Units } & \text { Cost } \\ \hline { \text { May } 3 } & \text { Purchase } & 5 & \$ 20 \\ \hline 10 & \text { Sale } & 3 & \\ \hline 17 & \text { Purchase } & 10 & \$ 24 \\ \hline 20 & \text { Sale } & 6 & \\ \hline 23 & \text { Sale } & 3 & \\ \hline 30 & \text { Purchase } & 10 & \$ 30 \\ \hline \end{array}\] -Assuming that the company uses the perpetual inventory system, determine the Gross Profit for the month of May using the LIFO cost method.

A) $348 B) $452 C) $444 D) $356 A) $348 B) $452 C) $444 D) $356

The units of an item available for sale during the year were as follows: $\begin{array}{|ll|l|l|} \hline \text { January } & 11 & \text { Inventory } & 60 \text { units @ } \$ 145 \\ \hline \text { February } & 27 & \text { Purchase } & 90 \text { units @ } \$ 150 \\ \hline \text { November } &21 & \text { Purchase } & 75 \text { units } @ \$ 154 \\ \hline \end{array}$ There are 48 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by a) the first-in, first-out method, b) the last-in, first-out method, and c) the average cost method. Show your work.

a)$7,392 48 units × $154)b)$6,

Exam 6: Inventories

The inventory data for an item for November are: Nov. 1 Inventory 20 units at \ 19 4 Sold 10 units 10 Purchased 30 units at \ 20 17 Sold 20 units 30 Purchased 10 units at \ 21 Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO?

(Multiple Choice)

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Question 181

Use the information below to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 5 \ 20 10 Sale 3 17 Purchase 10 \ 24 20 Sale 6 23 Sale 3 30 Purchase 10 \ 30 -Assuming that the company uses the perpetual inventory system, determine the ending inventory value for the month of May using the FIFO inventory cost method.

(Multiple Choice)

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Question 182

If the cost of an item of inventory is $60 and the current replacement cost is $75, the amount included in inventory according to the lower of cost or market is

(Multiple Choice)

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Question 183

Of the three widely used inventory costing methods FIFO, LIFO, and average cost), the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first.

(True/False)

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Question 184

Cost flow is in the order in which costs were incurred when using

(Multiple Choice)

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Question 185

Match each description to the appropriate document used for inventory control a-c). -last document in the chain, use to compare all three for accuracy

(Multiple Choice)

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Question 186

Under the periodic inventory system, the merchandise inventory account continuously discloses the amount of inventory on hand.

(True/False)

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Question 187

The number of days' sales in inventory measures

(Multiple Choice)

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Question 188

The inventory data for an item for November are: Nov. 1 Inventory 20 units at \ 19 4 Sold 10 units 10 Purchased 30 units at \ 20 17 Sold 20 units 30 Purchased 10 units at \ 21 Using a perpetual system, what is the cost of the merchandise sold for November if the company uses LIFO?

(Multiple Choice)

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Question 189

During the taking of its physical inventory on December 31, Almond Supplies Company incorrectly counted its inventory as $545,000 instead of the correct amount of $554,000. Indicate the effects of the misstatement on Almond Supplies Company's balance sheet and income statement for the year ended December 31.

(Essay)

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Question 190

Too much inventory on hand

(Multiple Choice)

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Question 191

Use the information below to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 5 \ 20 10 Sale 3 17 Purchase 10 \ 24 20 Sale 6 23 Sale 3 30 Purchase 10 \ 30 -Assuming that the company uses the perpetual inventory system, determine the Gross Profit for the month of May using the LIFO cost method.

(Multiple Choice)

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Question 192

Match each description to the appropriate cost flow assumption a-c). -Produces the highest gross profit when costs are decreasing

(Multiple Choice)

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Question 193

Match each situation to its impact a-c) on the current year's net income. -Merchandise was purchased FOB destination on the last day of the year. The cost of the merchandise purchased was not included in ending inventory.

(Multiple Choice)

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Question 194

Match each description to the appropriate cost flow assumption a-d). -Cost flow matches the unit sold to the unit purchased.

(Multiple Choice)

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Question 195

The units of an item available for sale during the year were as follows: January 11 Inventory 60 units @ \ 145 February 27 Purchase 90 units @ \ 150 November 21 Purchase 75 units @\ 154 There are 48 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by a) the first-in, first-out method, b) the last-in, first-out method, and c) the average cost method. Show your work.

(Essay)

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Question 196

Safeguarding inventory and proper reporting of the inventory in the financial statements are the reasons for controlling the inventory.

(True/False)

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Question 197

The value of ending inventory using LIFO is

(Multiple Choice)

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Question 198

Three identical units of merchandise were purchased during July, as follows: Assume one unit sells on July 28 for $45. Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using a) first-in, first-out, b) last-in, first-out, and c) average cost flow methods.

(Essay)

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Question 199

Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and stockholders' equity?

(Multiple Choice)

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Question 200

Exam 6: Inventories

The inventory data for an item for November are: Nov. 1 Inventory 20 units at \ 19 4 Sold 10 units 10 Purchased 30 units at \ 20 17 Sold 20 units 30 Purchased 10 units at \ 21 Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO?

If the cost of an item of inventory is $60 and the current replacement cost is $75, the amount included in inventory according to the lower of cost or market is

Of the three widely used inventory costing methods FIFO, LIFO, and average cost), the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first.

Cost flow is in the order in which costs were incurred when using

Match each description to the appropriate document used for inventory control a-c). -last document in the chain, use to compare all three for accuracy

Under the periodic inventory system, the merchandise inventory account continuously discloses the amount of inventory on hand.

The number of days' sales in inventory measures

The inventory data for an item for November are: Nov. 1 Inventory 20 units at \ 19 4 Sold 10 units 10 Purchased 30 units at \ 20 17 Sold 20 units 30 Purchased 10 units at \ 21 Using a perpetual system, what is the cost of the merchandise sold for November if the company uses LIFO?

Too much inventory on hand

Match each description to the appropriate cost flow assumption a-c). -Produces the highest gross profit when costs are decreasing

Match each situation to its impact a-c) on the current year's net income. -Merchandise was purchased FOB destination on the last day of the year. The cost of the merchandise purchased was not included in ending inventory.

Match each description to the appropriate cost flow assumption a-d). -Cost flow matches the unit sold to the unit purchased.

Safeguarding inventory and proper reporting of the inventory in the financial statements are the reasons for controlling the inventory.

The value of ending inventory using LIFO is

Three identical units of merchandise were purchased during July, as follows: Assume one unit sells on July 28 for $45. Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using a) first-in, first-out, b) last-in, first-out, and c) average cost flow methods.

Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and stockholders' equity?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

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