Romanoff Industries had the following inventory transactions occur during 2015: $\begin{array}{llll}&&\text { Units }&\text { Cost/unit }\\ 2 / 1 / 15 & \text { Purchase } & 54 & \$ 45 \\ 3 / 14 / 15 & \text { Purchase } & 93 & \$ 47 \\ 5 / 1 / 15 & \text { Purchase } & 66 & \$ 49 \end{array}$ The company sold 150 units at $70 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)

A) $3,318 B) $3,552 C) $6,948 D) $7,182 A) $3,318 B) $3,552 C) $6,948 D) $7,182

A company uses the periodic inventory method and the beginning inventory is overstated by $7,000 because the ending inventory in the previous period was overstated by $7,000. The amounts reflected in the current end of the period balance sheet are $\begin{array} { cc } &\underline { \text { Assets } } &\underline{ \text { Stockholders' Equity } }\\\end{array}$ A)$\begin{array} { cc } \text { Overstated } & \text { Overstated } \\\end{array}$ B)$\begin{array} { cc } \text {Correct } &&& \text { Correct } \\\end{array}$ C)$\begin{array} { cc } \text { Understated } & \text { Understated } \\\end{array}$ D)$\begin{array} { cc } \text { Overstated } && \text { Correct } \end{array}$

The answer of A company uses the periodic inventory method...

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2015 are as follows: \[\begin{array} { l c c r } & \text { Units } & \text { Per unit price } & \text { Total } \\ \text { Balance, } 1 / 1 / 15 & 200 & \$ 5.00 & \$ 1,000 \\ \text { Purchase, } 1 / 15 / 15 & 100 & 5.30 & 530 \\ \text { Purchase, } 1 / 28 / 15 & 100 & 5.50 & 550 \end{array}\] An end of the month (1/31/15) inventory showed that 160 units were on hand. If the company uses FIFO, what is the value of the ending inventory?

A) $800 B) $832 C) $848 D) $868 A) $800 B) $832 C) $848 D) $868

Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows: $\begin{array}{lll} \underline{\text { Date}}&\underline{\text { Purchases }}&\underline{\text { Sales}}\\ \text { Jan. } 14 & & 375 @ \$ 14 \\ \quad\quad17 & 250 @ \$ 10& \\ \quad\quad25 & 250 @ \$ 11& \\ \quad\quad29 & &260 @ \$ 16 \end{array}$ Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is:

A) $3,285. B) $3,650. C) $3,900. D) $4,015. A) $3,285. B) $3,650. C) $3,900. D) $4,015.

Eneri Company's inventory records show the following data: $\begin{array}{lcrr}&\text { Units }&\text { Unit Cost }\\ \text { Inventory, January 1 } & 10,000 & \$ 9.20 \\ \text { Purchases: } \text { June 18 } & 9,000 & 8.00 \\ \text { November 8 } & 6,000 & 7.00 \end{array}$ A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. Under the FIFO method, the December 31 inventory is valued at

A) $28,000. B) $32,267. C) $32,960. D) $36,800. A) $28,000. B) $32,267. C) $32,960. D) $36,800.

Exam 6: Inventories

Romanoff Industries had the following inventory transactions occur during 2015: Units Cost/unit 2/1/15 Purchase 54 \ 45 3/14/15 Purchase 93 \ 47 5/1/15 Purchase 66 \ 49 The company sold 150 units at $70 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)

(Multiple Choice)

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Question 21

In a period of increasing prices, which inventory flow assumption will result in the lowest amount of income tax expense?

(Multiple Choice)

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Question 22

GAAP's definition for inventory and provision of guidelines for inventory accounting, as compared to IFRS are: $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Guideliness for Definitions for Inventory $\quad$ inventory accounting a. essentially similar $\quad$ $\quad$ $\quad$ more detailed b. essentially different $\quad$ $\quad$ more detailed c. essentially similar $\quad$ $\quad$ $\quad$ less detailed d. essentially different $\quad$ $\quad$ less detailed

(Short Answer)

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Question 23

A company uses the periodic inventory method and the beginning inventory is overstated by $7,000 because the ending inventory in the previous period was overstated by $7,000. The amounts reflected in the current end of the period balance sheet are A) Overstated Overstated B) Correct Correct C) Understated Understated D) Overstated Correct

(Short Answer)

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Question 24

IFRS defines market for lower-of-cost-or market as

(Multiple Choice)

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Question 25

Indrisano's Used Cars uses the specific identification method of costing inventory. During March, Indrisano purchased three cars for $12,000, $14,400, and $19,200, respectively. During March, two cars are sold for a total of $34,600. Indrisano determines that at March 31, the $14,400 car is still on hand. What is Indrisano's gross profit for March?

(Multiple Choice)

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Question 26

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2015 are as follows: Units Per unit price Total Balance, 1/1/15 200 \ 5.00 \ 1,000 Purchase, 1/15/15 100 5.30 530 Purchase, 1/28/15 100 5.50 550 An end of the month (1/31/15) inventory showed that 160 units were on hand. If the company uses FIFO, what is the value of the ending inventory?

(Multiple Choice)

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Question 27

If a company changes its inventory valuation method, the effect of the change on net income should be disclosed in the financial statements.

(True/False)

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Question 28

Finished goods are a classification of inventory for a manufacturer that are completed and ready for sale.

(True/False)

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Question 29

The major IFRS requirements related to accounting for and reporting inventories are

(Multiple Choice)

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Question 30

Under the LCM approach, the market value is defined as

(Multiple Choice)

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Question 31

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

(Multiple Choice)

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Question 32

Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a current replacement cost of $400. What value should Switzer, Inc., have for the computers at the end of the year?

(Multiple Choice)

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Question 33

The following information was available for Pete Company at December 31, 2015: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $984,000; and sales $1,350,000. Pete's days in inventory in 2015 was

(Multiple Choice)

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Question 34

In a period of inflation, the cost flow method that results in the lowest income taxes is the

(Multiple Choice)

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Question 35

Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows: Jan. 14 375@\ 14 17 250@\ 10 25 250@\ 11 29 260@\ 16 Partridge does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is:

(Multiple Choice)

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Question 36

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

(True/False)

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Question 37

Eneri Company's inventory records show the following data: Units Unit Cost Inventory, January 1 10,000 \ 9.20 Purchases: June 18 9,000 8.00 November 8 6,000 7.00 A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. Under the FIFO method, the December 31 inventory is valued at

(Multiple Choice)

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Question 38

The lower-of-cost-or-market (LCM) basis may be used with all of the following methods except

(Multiple Choice)

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Question 39

The following information was available for Pete Company at December 31, 2015: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $984,000; and sales $1,350,000. Pete's inventory turnover in 2015 was

(Multiple Choice)

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Question 40

Showing 21 - 40 of 179

In a period of increasing prices, which inventory flow assumption will result in the lowest amount of income tax expense?

IFRS defines market for lower-of-cost-or market as

If a company changes its inventory valuation method, the effect of the change on net income should be disclosed in the financial statements.

Finished goods are a classification of inventory for a manufacturer that are completed and ready for sale.

The major IFRS requirements related to accounting for and reporting inventories are

Under the LCM approach, the market value is defined as

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

The following information was available for Pete Company at December 31, 2015: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $984,000; and sales $1,350,000. Pete's days in inventory in 2015 was

In a period of inflation, the cost flow method that results in the lowest income taxes is the

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

The lower-of-cost-or-market (LCM) basis may be used with all of the following methods except

The following information was available for Pete Company at December 31, 2015: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $984,000; and sales $1,350,000. Pete's inventory turnover in 2015 was

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