Exam 8: Inventory

Use the following information for questions During 2010 Ebert Corporation transferred inventory to Holger Corporation and agreed to repurchase the merchandise early in 2011.Holger then used the inventory as collateral to borrow from Norwalk Bank, remitting the proceeds to Ebert.In 2011 when Ebert repurchased the inventory, Holger used the proceeds to repay its bank loan. -On whose books should the cost of the inventory appear at the December 31, 2010 balance sheet date?

Use the following information for questions -Assuming that perpetual inventory records are kept in dollars, the ending inventory on a FIFO basis is

Goods on consignment are

Use the following information for questions -Assuming that Lock does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?

Which of the following does not correctly describe a periodic inventory accounting system?

Chen Co.accepted delivery of merchandise which it purchased on account.As of December 31, Chen had recorded the transaction, but did not include the merchandise in its inventory.The effect of this on its financial statements for December 31 would be

The cost of raw material plus direct labour cost plus overhead

Which of the following does not correctly describe the weighted average costing method?

How should the following costs affect a retailer's inventory valuation?

Use the following information for questions -Assuming Chu uses a perpetual inventory system, which entry would have been made to account for the April 1 sale?

Hoskins Company had a gross profit of $270,000, total purchases of $320,000, and an ending inventory of $150,000 in its first year of operations as a retailer.Hoskins' sales in its first year must have been

Which of the following statements regarding borrowing costs is correct?

In situations where there is a rapid turnover, an inventory method which produces a balance sheet valuation similar to the first-in, first-out method is

Which of the following does not correctly describe the FIFO costing method?

Which of the following does not correctly describe the implications of an executory contract on the accounting entries and/or disclosures to be made by the purchaser and/or seller?

Teel Corp.'s accounts payable at December 31, 2010, totalled $900,000 before any necessary year-end adjustments relating to the following transactions:  At December 31, 2010, what amount should Teel report as total accounts payable?

Which of the following statements with respect to the impact of inventory errors is not correct? All else being equal,

In no case can "market" in the lower of cost and market rule be more than

Which of the following best describes the concept of a basket purchase?

Use the following information for questions -Assuming Chu uses a perpetual inventory system, the entry to account for the March 1 purchase is