Exam 8: Inventory

Use the following information for questions. Tang Inc.uses the retail inventory method.The following information is available for the current year: -If the ending inventory is to be valued at approximately lower of average cost and market, the calculation of the cost ratio should be based on cost and retail of

Which of the following statements is INCORRECT regarding the overriding objectives underlying inventory standards and guide management?

At the end of its accounting year, Guild Corp.'s physical inventory count indicated that 540,000 units of inventory, costing $1.50 each, were on hand.The company's perpetual inventory system reported a balance of $817,200.The year-end adjusting entry is

To record a "basket purchase" or to allocate a joint product cost, which method is the most rational?

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?

Companies that carry inventories must carefully monitor inventory in order to

The inventory turnover ratio is calculated as

Use the following information for questions. The following information was available from the inventory records of Key Company for January: -Assuming that Key uses the periodic inventory system, what should the inventory be at January 31, using the weighted-average inventory method, rounded to the nearest dollar?

A "basket purchase" is a purchase of

Which of the following is correct?

Goods in transit which are shipped FOB shipping point should be included

Use the following information for questions. During 2017 Ebert Corp.transferred inventory to Siskel Corp.and agreed to repurchase the merchandise early in 2018.Siskel then used the inventory as collateral to borrow from Southern Bank, remitting the proceeds to Ebert.In 2018 when Ebert repurchased the inventory, Siskel used the proceeds to repay its bank loan. -This transaction is known as a(n)

Under IFRs, liabilities related to non-cancellable purchase commitments are typically recognized

Which of the following does NOT correctly describe the weighted average cost formula?

Nottingham Inc.'s net sales and gross profit were $1,341,000 and $471,000 respectively.Assuming the cost of goods available were $1,084,000, what was the cost value of the ending inventory?

The primary basis of accounting for inventories is cost.A departure from the cost basis of pricing inventory is required where there is evidence that when the goods are sold in the ordinary course of business, their

Use the following information for questions. Ryerson Corp.records purchases at net amounts.On May 5, Ryerson purchased merchandise on account costing $6,000 (gross), terms 2/10, n/30.Ryerson returned $400 of the May 5 purchase and received credit on account.At May 31 the balance had not been paid. -By how much should the account payable be adjusted on May 31?

A hardware retailer typically maintains the following inventory account(s):

Which of the following does NOT correctly describe the specific identification cost formula?

Which of the following types of interest cost incurred in connection with the purchase or manufacture of inventory should be capitalized as a product cost?