Question 1

The retail method:

Accepted Answer

A)  Is not an estimate 
B)  Does not require a cost ratio 
C)  Eliminates any need ever to take a physical inventory 
D)  Aids a company in not having to calculate an inventory cost for each individual item 
E)  None of these 
A)  Is not an estimate 
B)  Does not require a cost ratio 
C)  Eliminates any need ever to take a physical inventory 
D)  Aids a company in not having to calculate an inventory cost for each individual item 
E)  None of these

Question 2

Ron Co. has a gross profit on sales of 42%. On November 1, 2014, beginning inventory was $9,000. Net purchases for the month were $35,000. Assuming Ron has retail sales of $60,000 in November, what is the estimated cost of ending inventory using the gross profit method?

Accepted Answer

The answer of Ron Co. has a gross profit on...

Question 3

Given: Department A 8,000 sq. ft., Department B 5,000 sq. ft., and Department C 6,000 sq. ft. The percent of overhead expense applied to Department C to the nearest whole percent will be:

Accepted Answer

A)  68% 
B)  32% 
C)  26% 
D)  42% 
E)  None of these 
A)  68% 
B)  32% 
C)  26% 
D)  42% 
E)  None of these

Question 4

In the retail method the ending inventory at cost is calculated by multiplying the cost ratio times:

Accepted Answer

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

Question 5

In the specific identification method, the flow of goods and the flow of costs are not the same.

Accepted Answer

A) True 
 B)False

Question 6

Blue Company on January 1 had inventory costing $65,000 and during January had net purchases of $119,000. Over recent years, Blue's gross profit has averaged 40% on sales. Assuming that the company has net sales of $190,000, calculate the estimated cost of ending inventory by using the gross profit method.

Accepted Answer

The answer of Blue Company on January 1 had inventory...

Question 7

LIFO doesn't always match the physical flow of goods but still can be used to calculate the flow of costs.

Accepted Answer

A) True 
 B)False

Question 8

With net sales of $40,000, beginning inventory at retail of $14,000, ending inventory at retail of $20,000, and cost of goods sold of $19,500, the inventory turnover at retail is (to the nearest hundredth):

Accepted Answer

A)  5.15 
B)  3.25 
C)  2.35 
D)  5.23 
E)  None of these 
A)  5.15 
B)  3.25 
C)  2.35 
D)  5.23 
E)  None of these

The retail method:

Ron Co. has a gross profit on sales of 42%. On November 1, 2014, beginning inventory was $9,000. Net purchases for the month were $35,000. Assuming Ron has retail sales of $60,000 in November, what is the estimated cost of ending inventory using the gross profit method?

Given: Department A 8,000 sq. ft., Department B 5,000 sq. ft., and Department C 6,000 sq. ft. The percent of overhead expense applied to Department C to the nearest whole percent will be:

In the retail method the ending inventory at cost is calculated by multiplying the cost ratio times:

In the specific identification method, the flow of goods and the flow of costs are not the same.

LIFO doesn't always match the physical flow of goods but still can be used to calculate the flow of costs.

With net sales of $40,000, beginning inventory at retail of $14,000, ending inventory at retail of $20,000, and cost of goods sold of $19,500, the inventory turnover at retail is (to the nearest hundredth):

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Exam 15: Inventory and Overhead

The retail method:

Ron Co. has a gross profit on sales of 42%. On November 1, 2014, beginning inventory was $9,000. Net purchases for the month were $35,000. Assuming Ron has retail sales of $60,000 in November, what is the estimated cost of ending inventory using the gross profit method?

Given: Department A 8,000 sq. ft., Department B 5,000 sq. ft., and Department C 6,000 sq. ft. The percent of overhead expense applied to Department C to the nearest whole percent will be:

In the retail method the ending inventory at cost is calculated by multiplying the cost ratio times:

In the specific identification method, the flow of goods and the flow of costs are not the same.

LIFO doesn't always match the physical flow of goods but still can be used to calculate the flow of costs.

With net sales of $40,000, beginning inventory at retail of $14,000, ending inventory at retail of $20,000, and cost of goods sold of $19,500, the inventory turnover at retail is (to the nearest hundredth):

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