Exam 6: Reporting and Analyzing Inventory

The managers of Winning Ways Ltd.receive performance bonuses based on the company's net income.Which inventory cost formula are they likely to favour in periods of declining prices?

Use the following information for the month of July for questions ABC Inc.uses the FIFO cost formula in a perpetual inventory system. -Ending inventory at July 31 is

XYZ Inc.uses the average cost formula in a perpetual inventory system. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.) If XYZ Inc.was using the FIFO cost formula instead of average, gross profit from the June 8 sale would be

An aircraft manufacturer would most likely have a

Days in inventory is calculated by dividing 365 days by

Babal Inc.is a wholesaler of electronics.It purchased 1,200 units of Product X for $600 each during 2022.The selling price during the year was $800 per unit.At year end, it had 200 units on hand and due to changes in technology, the selling price will have to be reduced by 35% in order to sell them.The value of each unit of Product X for the year-end inventory presentation should be

During a period of inflation, using ___ will approximate a company's current cost of ending inventory.

The specific identification method of inventory cost formula must be used

An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory.The effect of this error in the current period is

The specific identification cost formula may be used when:

In a periodic inventory system, the cost of goods sold is determined

For 2022, Superplus Inc.reported $48,000 beginning inventory and $52,000 ending inventory.Sales were $320,000 and gross profit was $110,000 for the same period.Based on these figures, days in inventory for 2022 was

Use the following information for the month of July for questions ABC Inc.uses the FIFO cost formula in a perpetual inventory system. -Total cost of goods sold for the month of July is

Anderson's Used Cars uses the specific identification formula of costing inventory.During March, Anderson purchased three cars: a Honda Civic for $6,200, a Chevy Malibu for $7,300, and a Ford Pinto $8,400, respectively.During March, two cars are sold for $8,600 each.Anderson determines that at March 31, the Ford Pinto is still on hand.What is Anderson's cost of goods sold for March?

Cost of goods available for sale is:

The cost of goods available for sale is allocated between

A high inventory turnover ratio indicates that minimal funds are tied up in inventory.

Use the following information for questions A company just starting its business made the following four inventory purchases in June: On June 25, the company made its first sale when a local customer purchased 500 units for $3,500.The company uses a perpetual inventory system. -Using the average cost formula, the cost of the ending inventory on June 30 is

The specific identification formula of costing inventories is used when the

Use the following information for the month of June for questions XYZ Inc.uses the average cost formula in a perpetual inventory system. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.) -XYZ Inc.has an ending inventory on June 30 of