Question 1

Match each situation to its impact a-c) on the current year's net income.
-A consignor included merchandise in the hands of the consignee in ending inventory.

Accepted Answer

A) Net income for the current year will be overstated. 
B) Net income for the current year will be understated. 
C) There will be no error effect on net income. 
A) Net income for the current year will be overstated. 
B) Net income for the current year will be understated. 
C) There will be no error effect on net income.

Question 2

The specific identification inventory method should be used when the inventory consists of identical, low-cost units that are purchased and sold frequently.

Accepted Answer

A) True 
 B)False

Question 3

Assume that three identical units of merchandise are purchased during October, as follows: $$\begin{array} { | l | l | l | l | l | } 
\hline & & & \text { Units } & \text { Cost } \
\hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \
\hline & 12 & \text { Purchase } & 1 & 13 \
\hline & 28 & \text { Purchase } & 1 & 15 \
\hline \text { Total } & & & 3 & \$ 33 \
\hline
\end{array}$$ Assume one unit is sold on October 31 for $28. Determine cost of merchandise sold, gross profit, and ending inventory under the FIFO method.

Accepted Answer

The answer of Assume that three identical units of merchandise...

Question 4

The inventory method that assigns the most recent costs to cost of merchandise sold is

Accepted Answer

A)  FIFO 
B)  LIFO 
C)  weighted average 
D)  specific identification 
A)  FIFO 
B)  LIFO 
C)  weighted average 
D)  specific identification

Question 5

The units of Product Green-2 available for sale during the year were as follows:   There are 17 units of the product in the physical inventory at September 30. The periodic inventory system is used. Determine the cost of merchandise sold by a) FIFO, b) LIFO, and c) average cost methods.

Accepted Answer

The answer of The units of Product Green-2 available for...

Match each situation to its impact a-c) on the current year's net income. -A consignor included merchandise in the hands of the consignee in ending inventory.

The specific identification inventory method should be used when the inventory consists of identical, low-cost units that are purchased and sold frequently.

The inventory method that assigns the most recent costs to cost of merchandise sold is

The units of Product Green-2 available for sale during the year were as follows: There are 17 units of the product in the physical inventory at September 30. The periodic inventory system is used. Determine the cost of merchandise sold by a) FIFO, b) LIFO, and c) average cost methods.

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

Filters

Exam 6: Inventories

Match each situation to its impact a-c) on the current year's net income. -A consignor included merchandise in the hands of the consignee in ending inventory.

The specific identification inventory method should be used when the inventory consists of identical, low-cost units that are purchased and sold frequently.

The inventory method that assigns the most recent costs to cost of merchandise sold is

The units of Product Green-2 available for sale during the year were as follows: There are 17 units of the product in the physical inventory at September 30. The periodic inventory system is used. Determine the cost of merchandise sold by a) FIFO, b) LIFO, and c) average cost methods.

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

Filters