Question 1

When the average cost method is applied in a periodic inventory system,

Accepted Answer

A) the sale of goods during the year will change the unit cost used for calculating ending inventory. 
B) an average cost per unit is calculated after each purchase rather than at the end of the period. 
C) an average cost per unit is calculated at the end of the period rather than after each purchase. 
D) an average cost per unit is not calculated in the same manner that is used for a perpetual inventory system. 
A) the sale of goods during the year will change the unit cost used for calculating ending inventory. 
B) an average cost per unit is calculated after each purchase rather than at the end of the period. 
C) an average cost per unit is calculated at the end of the period rather than after each purchase. 
D) an average cost per unit is not calculated in the same manner that is used for a perpetual inventory system.

Question 2

The factor that determines whether or not goods should be included in a physical count of inventory is

Accepted Answer

A) physical possession. 
B) ownership. 
C) management's judgement. 
D) whether or not the purchase price has been paid. 
A) physical possession. 
B) ownership. 
C) management's judgement. 
D) whether or not the purchase price has been paid.

Question 3

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.)
  
-Total cost of goods sold for the month of June is

Accepted Answer

A) $2,914.65. 
B) $2,934.96. 
C) $2,946.24. 
D) $2,994.80. 
A) $2,914.65. 
B) $2,934.96. 
C) $2,946.24. 
D) $2,994.80.

When the average cost method is applied in a periodic inventory system,

The factor that determines whether or not goods should be included in a physical count of inventory is

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

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Exam 6: Reporting and Analyzing Inventory

When the average cost method is applied in a periodic inventory system,

The factor that determines whether or not goods should be included in a physical count of inventory is

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

Filters