Exam 8: Inventory

If the unavoidable costs of completing a purchase commitment are higher than the expected benefits from receiving the contracted goods or services, IFRS requires a loss provision to be recognized.This is known as a(n)

At January 1, 2017, Nevada Ltd.had 150 units of product A on hand, costing $32 each.Purchases of product A during January were as follows: A physical count on January 31, 2017 shows 200 units of product A on hand.The cost of the inventory at January 31, 2017 under the FIFO cost formula is

Which of the following items would be inventory for a company like Marriott Hotel Corporation?

Goods in transit which are shipped FOB destination should be included

The cost of inventory is made up of

The gross profit method of inventory valuation is NOT suitable when

Use the following information for questions. Tang Inc.uses the retail inventory method.The following information is available for the current year: -The ending inventory at retail should be

The cost of goods available for sale is calculated as

The lower of cost and NRV standard specific that the comparison is usually applied on

The gross profit percentage is calculated by

The inventory costing method that can be used only for goods that are NOT ordinarily interchangeable is the

Use the following information for questions. Giselle Ltd.is a calendar-year corporation.Its financial statements for the years 2018 and 2017 contained errors as follows: -Assume that no correcting entries were made at December 31, 2017.Ignoring income taxes, by how much will retained earnings at December 31, 2018 be overstated or understated?

Which of the following is NOT a required inventory disclosure under ASPE?

If a material amount of inventory has been ordered through a formal purchase contract at the statement of financial position date, for future delivery, at firm prices,

A manufacturer that carries very little inventory likely follows the

Which of the following statements with respect to the gross profit method of estimating inventory is NOT correct?

For 2017, Colorado Corp.'s cost of goods sold was $562,500 and their sales were $1,200,000.Assuming an inventory turnover of 3.5 for the year, what was the company's average inventory? (Round to the nearest dollar.)

Wilma received merchandise on consignment from Betty.As of March 31, Wilma had recorded the transaction as a purchase and included the goods in inventory.The effect of this on Wilma's financial statements for March 31 would be

For calendar 2017, Redfern Corporation reported pre-tax income of $270,000.You have been made aware that the company's beginning inventory was overstated by $14,000 and ending inventory was understated by $9,000.What is Redern's corrected pre-tax income for 2017?

For calendar 2017, cost of goods available for sale for Janus Corp.was $820,000.The average gross profit rate was 30%.Sales for the year were $600,000.What is the estimated dollar value of the inventory at December 31?