Exam 7: Inventories

If the estimated rate of gross profit is 30%, what is the estimated cost of the merchandise inventory on September 30, based on the following data?? Sept. 1 Merchandise inventory (at cost) $~~~~~~~~~~~~~~\$ 125,000$ Sept. 1-30 Purchases, net (at cost) $~~~~~~~~~~~~~~~~~~~~~~~300,000$ Sept. 1-30 Sales $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~150,000$

Cost flow is in the order in which costs were incurred when using

Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the

Use the information below to answer the following questions. Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 5 \ 20 10 Sale 3 17 Purchase 10 24 20 Sale 6 23 Sale 3 30 30 Purchase 10 ? -Assuming that the company uses the perpetual inventory system, determine the ending inventory value for the month of May using the FIFO inventory cost method.

Kristin's Boutique has identified the following items for possible inclusion in its December 31 inventory. Which of the following would not be included in the year-end inventory?

The three inventory costing methods will normally each yield different amounts of net income.

It is not unusual for large companies to use different inventory costing methods for different segments of their inventory.

During the taking of its physical inventory on December 31, Almond Supplies Company incorrectly counted its inventory as $545,000 instead of the correct amount of $554,000. Indicate the effects of the misstatement on Almond Supplies Company's balance sheet and income statement for the year ended December 31.

When merchandise inventory is shown on the balance sheet, both the method of determining the cost of the inventory and the method of valuing the inventory should be shown.

The days' sales in inventory measures the

FIFO reports higher gross profit and net income than the LIFO method when ​

On the basis of the following data, estimate the cost of the merchandise inventory at March 31 by the retail method. March 1 Merchandise inventory \ 250,000 \ 350,000 March 1-31 Purchases (net) 850,000 1,650,000 March 1-31 Sales 845,000

Direct disposal costs do not include special advertising or sales commissions.

During the taking of its physical inventory on December 31, Barry's Bike Shop incorrectly counted its inventory as $350,000 instead of the correct amount of $280,000. The effect on the balance sheet and income statement would be

Match each description to the appropriate cost flow assumption (a-d). -Cost flow matches the unit sold to the unit purchased.

On the basis of the following data, determine the estimated cost of the inventory as of March 31 by the retail method, presenting details of the computation in good order.

Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and owner's equity?

Cost flow is in the reverse order in which costs were incurred when using

Which of the following companies would be more likely to use the specific identification inventory costing method?

Match each description to the appropriate cost flow assumption (a-c). -Prohibited under International Financial Reporting Standards (IFRS)