Question 1

Using the retail method, could you calculate the value of ending inventory at cost for Morse Co.? Round the cost ratio to the nearest hundredth.

Accepted Answer

The answer of Using the retail method, could you calculate...

Question 2

The gross profit method is a way to estimate the cost of ending inventory without a physical count.

Accepted Answer

A) True 
 B)False

Question 3

The cost ratio times ending inventory at cost equals ending inventory at retail.

Accepted Answer

A) True 
 B)False

Question 4

Jane and Bill Co. started with a beginning inventory of $90,000. Ending inventory was $110,000. Cost of goods was $260,000. Complete the inventory turnover at cost for Jane and Bill Co. (to the nearest tenth).

Accepted Answer

The answer of Jane and Bill Co. started with a...

Question 5

A cost ratio of $.68 means that for each $1 of retail inventory it costs the store $.68.

Accepted Answer

A) True 
 B)False

Question 6

Stone Company uses the LIFO method. At the end of the period there are 22 units left in inventory. Given the following, the cost of ending inventory is:

Accepted Answer

A)  $1,400 
B)  $3,200 
C)  $1,530 
D)  $3,150 
E)  None of these 
A)  $1,400 
B)  $3,200 
C)  $1,530 
D)  $3,150 
E)  None of these

Question 7

Compared with cost due to theft, spoilage, etc., inventory turnover at retail is usually:

Accepted Answer

A)  Higher 
B)  Much higher 
C)  Lower 
D)  Much lower 
E)  None of these 
A)  Higher 
B)  Much higher 
C)  Lower 
D)  Much lower 
E)  None of these

Question 8

Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is:

Accepted Answer

A)  $28.00 
B)  $12.00 
C)  $21.00 
D)  $3.50 
E)  None of these 
A)  $28.00 
B)  $12.00 
C)  $21.00 
D)  $3.50 
E)  None of these

Question 9

Perpetual inventory does not have this characteristic:

Accepted Answer

A)  High price, limited inventory 
B)  Verified at some point by a physical count 
C)  Low price, large inventory 
D)  Utilizes scanners, computers, etc. 
E)  None of these 
A)  High price, limited inventory 
B)  Verified at some point by a physical count 
C)  Low price, large inventory 
D)  Utilizes scanners, computers, etc. 
E)  None of these

Question 10

Moore Co. has a beginning inventory at a cost of $50,000 and an ending inventory at a cost of $90,000. Sales were $150,000. Assume Moore's markup rate is 40%. Based on the selling price, what is the inventory turnover at cost? (Round to the nearest hundredth.)

Accepted Answer

The answer of Moore Co. has a beginning inventory at...

Question 11

The specific identification method is able to identify in the ending inventory the actual invoice cost associated with it.

Accepted Answer

A) True 
 B)False

Question 12

Inventory turnover at cost is net sales divided by average inventory at retail.

Accepted Answer

A) True 
 B)False

Question 13

Companies with homogeneous products might use the weighted-average method.

Accepted Answer

A) True 
 B)False

Question 14

All but which one of the following is information needed to calculate inventory valuation by the retail method?

Accepted Answer

A)  Beginning inventory at cost and retail 
B)  Cost of net purchases at cost and retail 
C)  Net sales at cost 
D)  Net sales at retail 
E)  None of these 
A)  Beginning inventory at cost and retail 
B)  Cost of net purchases at cost and retail 
C)  Net sales at cost 
D)  Net sales at retail 
E)  None of these

Question 15

With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is:

Accepted Answer

A)  5.75 
B)  7.55 
C)  5.57 
D)  7.57 
E)  None of these 
A)  5.75 
B)  7.55 
C)  5.57 
D)  7.57 
E)  None of these

Question 16

Cost of goods sold is equal to cost of goods available for sale:

Accepted Answer

A)  Plus cost of ending inventory 
B)  Minus cost of ending inventory 
C)  Divided by cost of ending inventory 
D)  Multiplied by cost of ending inventory 
E)  None of these 
A)  Plus cost of ending inventory 
B)  Minus cost of ending inventory 
C)  Divided by cost of ending inventory 
D)  Multiplied by cost of ending inventory 
E)  None of these

Question 17

Jones Co. uses the retail inventory method. Given the following data, what is the ending inventory at cost? Sales at retail $80,000, net purchases at cost $41,200, net purchases at retail $66,800, beginning inventory at cost $22,400, beginning inventory at retail $36,800. Round cost ratio to the nearest whole percent.

Accepted Answer

A)  $23,600 
B)  $63,600 
C)  $14,936 
D)  $14,396 
E)  None of these 
A)  $23,600 
B)  $63,600 
C)  $14,936 
D)  $14,396 
E)  None of these

Question 18

The cost ratio in the retail method is found by the cost of goods available for sale at cost divided by:

Accepted Answer

A)  Net sales 
B)  Ending inventory at retail 
C)  Cost of goods available for sale at retail 
D)  Net purchases at cost 
E)  None of these 
A)  Net sales 
B)  Ending inventory at retail 
C)  Cost of goods available for sale at retail 
D)  Net purchases at cost 
E)  None of these

Question 19

Given the following: LIFO method 250 units left in inventory
The cost of ending inventory is:

Accepted Answer

A)  $1,550 
B)  $2,300 
C)  $1,200 
D)  $3,200 
E)  None of these 
A)  $1,550 
B)  $2,300 
C)  $1,200 
D)  $3,200 
E)  None of these

Question 20

Given the following: FIFO method: 16 units left in inventory   The cost of goods sold is:

Accepted Answer

A)  $5,000 
B)  $10,000 
C)  $4,965 
D)  $5,225 
E)  None of these 
A)  $5,000 
B)  $10,000 
C)  $4,965 
D)  $5,225 
E)  None of these

Using the retail method, could you calculate the value of ending inventory at cost for Morse Co.? Round the cost ratio to the nearest hundredth.

The gross profit method is a way to estimate the cost of ending inventory without a physical count.

The cost ratio times ending inventory at cost equals ending inventory at retail.

Jane and Bill Co. started with a beginning inventory of $90,000. Ending inventory was $110,000. Cost of goods was $260,000. Complete the inventory turnover at cost for Jane and Bill Co. (to the nearest tenth).

A cost ratio of $.68 means that for each $1 of retail inventory it costs the store $.68.

Stone Company uses the LIFO method. At the end of the period there are 22 units left in inventory. Given the following, the cost of ending inventory is:

Compared with cost due to theft, spoilage, etc., inventory turnover at retail is usually:

Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is:

Perpetual inventory does not have this characteristic:

Moore Co. has a beginning inventory at a cost of $50,000 and an ending inventory at a cost of $90,000. Sales were $150,000. Assume Moore's markup rate is 40%. Based on the selling price, what is the inventory turnover at cost? (Round to the nearest hundredth.)

The specific identification method is able to identify in the ending inventory the actual invoice cost associated with it.

Inventory turnover at cost is net sales divided by average inventory at retail.

Companies with homogeneous products might use the weighted-average method.

All but which one of the following is information needed to calculate inventory valuation by the retail method?

With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is:

Cost of goods sold is equal to cost of goods available for sale:

The cost ratio in the retail method is found by the cost of goods available for sale at cost divided by:

Given the following: LIFO method 250 units left in inventory The cost of ending inventory is:

Given the following: FIFO method: 16 units left in inventory The cost of goods sold is:

Problem Solving With Math

Fractions

Decimals

Solving for the Unknown

Business Statistics

Banking and Budgeting

Payroll and Income Tax

Sales, Excise, and Property Taxes

Risk Management

Installment Buying and Revolving Charge Credit Cards

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

The Cost of Home Ownership

Compound Interest and Present Value

Annuities and Sinking Funds

Stocks, Bonds, and Mutual Funds

Filters

Exam 15: Inventory and Overhead

Using the retail method, could you calculate the value of ending inventory at cost for Morse Co.? Round the cost ratio to the nearest hundredth.

The gross profit method is a way to estimate the cost of ending inventory without a physical count.

The cost ratio times ending inventory at cost equals ending inventory at retail.

Jane and Bill Co. started with a beginning inventory of $90,000. Ending inventory was $110,000. Cost of goods was $260,000. Complete the inventory turnover at cost for Jane and Bill Co. (to the nearest tenth).

A cost ratio of $.68 means that for each $1 of retail inventory it costs the store $.68.

Stone Company uses the LIFO method. At the end of the period there are 22 units left in inventory. Given the following, the cost of ending inventory is:

Compared with cost due to theft, spoilage, etc., inventory turnover at retail is usually:

Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is:

Perpetual inventory does not have this characteristic:

Moore Co. has a beginning inventory at a cost of $50,000 and an ending inventory at a cost of $90,000. Sales were $150,000. Assume Moore's markup rate is 40%. Based on the selling price, what is the inventory turnover at cost? (Round to the nearest hundredth.)

The specific identification method is able to identify in the ending inventory the actual invoice cost associated with it.

Inventory turnover at cost is net sales divided by average inventory at retail.

Companies with homogeneous products might use the weighted-average method.

All but which one of the following is information needed to calculate inventory valuation by the retail method?

With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is:

Cost of goods sold is equal to cost of goods available for sale:

The cost ratio in the retail method is found by the cost of goods available for sale at cost divided by:

Given the following: LIFO method 250 units left in inventory The cost of ending inventory is:

Given the following: FIFO method: 16 units left in inventory The cost of goods sold is:

Problem Solving With Math

Fractions

Decimals

Solving for the Unknown

Business Statistics

Banking and Budgeting

Payroll and Income Tax

Sales, Excise, and Property Taxes

Risk Management

Installment Buying and Revolving Charge Credit Cards

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

The Cost of Home Ownership

Compound Interest and Present Value

Annuities and Sinking Funds

Stocks, Bonds, and Mutual Funds

Filters