Question 1

​The method of inventory estimation using a company's gross margin percent to estimate the ending inventory is called the net income method.

Accepted Answer

A) True 
 B)False

Question 2

The number of times during an operating period that the average dollars invested in merchandise inventory were theoretically sold out is called inventory ____________________.

Accepted Answer

The answer of The number of times during an operating...

Question 3

Don's Dairy had sales of $275,000 in the month of March. Use the retail method to estimate the value of the inventory as of March 31 given the following financial information: (Round cost ratio to four decimal places) $\begin{array}{c}
\begin{array}{lll}
\text { { March } 1 \text { to March } 31 }\
\text { Beginning Inventory}\
\text { Net Purchases (March )}\
\text { Goods Available for Sale}\
\end{array}
\begin{array}{lll}
\text { COST } & \text { RETAIL } \
\hline \$ 220,380 & \$ 291,800 \
183,771 & 272,200 \
\hline \$ 462,080 &
\end{array}
\end{array}$

Accepted Answer

A)  $226,000.00 
B)  $236,777.70 
C)  $302,900.00 
D)  $239,631.00 
A)  $226,000.00 
B)  $236,777.70 
C)  $302,900.00 
D)  $239,631.00

Question 4

The annual inventory of Lowest Price Retailers shows the following information for handheld computers:   If 839 handheld computers were in stock on December 31, find the value of the ending inventory using the FIFO method of inventory pricing.

Accepted Answer

A)  $113,209 
B)  $170,141 
C)  $202,241 
D)  $228,341 
A)  $113,209 
B)  $170,141 
C)  $202,241 
D)  $228,341

Question 5

An inventory system in which merchandise is physically counted at least once a year to determine the value of goods available for sale is known as a periodic inventory system.​

Accepted Answer

A) True 
 B)False

Question 6

Calculate the total number of units available for sale and the cost of goods available for sale from the following inventory: $$\begin{array} { l l l } 
\text { Date } & \text { Units } & \text { Cost per unit } \
\hline \text { Beginning inventory, Jan. 1 } & 700 & \$ 20 \
\text { Purchase, February 10 } & 1,300 & \$ 25 \
\text { Purchase, March } 18 & 1,400 & \$ 35 \
\text { Purchase, July 15 } & 1,900 & \$ 40 \
\text { Purchase, October } 9 & 1,200 & \$ 32
\end{array}$$ 
A)How many total units are available for sale?
B)What is the cost of goods available for sale?

Accepted Answer

The answer of Calculate the total number of units available...

Question 7

Swenson Glass had cost of goods sold for the year of $6,240,000. The beginning inventory at cost was $586,300 and the ending inventory at cost amounted to $492,900.

A)What was the average inventory for the year?
B)What was the actual inventory turnover rate at cost for the company? (Round your answer to the nearest tenth)

Accepted Answer

a.$539,600

Question 8

Narrative 16-1
Use the information below for the following problems:
The following is the inventory for the year for Better Products, Inc.:
$$\begin{array} { l l l l } 
\text { Date } & \text { Units } & \text { Cost per unit } & \text { Total Cost } \
\hline \text { Beginning inventory, Jan. 1 } & 50 & \$ 85.26 & 4,263 \
\text { Purchase, April 15 } & 200 & 92.50 & 18,500 \
\text { Purchase, September 20 } & 140 & 91.50 & 12,810 \
\text { Purchase, December 15 } & 30 & 98.60 & 2,958 \
\hline \text { Total Units Available } & 420 & & \$ 38,531
\end{array}$$
-Refer to Narrative in your text 16-1. Using the Better Products inventory chart, what is the dollar value of the ending inventory on December 31 if Better Products used the average cost method of valuing their ending inventory of 85 units? (Round the average cost per unit to the nearest cent)

Accepted Answer

The answer of Narrative 16-1
Use the information below for the...

Question 9

The information below is given for the Brunswick Corp. for the month of June: $$\begin{array} { l l } 
\text { Beginning Inventory } & \$ 165,000 \
\text { Net Purchases } & \$ 810,000 \
\text { Net Sales } & \$ 1,000,000 \
\text { Gross Margin } & 30 \%
\end{array}$$ Using this information, calculate the following: 
A)Goods available for sale: _________
B)Estimated cost of goods sold: _________
C)Estimated ending inventory: _________

Accepted Answer

a.$975,000

Question 10

The current inventory turnover at retail for The Sports Authority is 4.7, based on net sales of $3,551,130. The published inventory turnover at retail is 5.1. Since the actual turnover rate is less than the published rate, find the target average inventory at retail. (Round your answer to the nearest dollar)

Accepted Answer

A)  $362,360 
B)  $696,300 
C)  $755,560 
D)  $59,260 
A)  $362,360 
B)  $696,300 
C)  $755,560 
D)  $59,260

Question 11

Rosen's Department Store had 430 big-screen TVs in stock at the end of the year. Inventory records show the following information:   Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory.

Accepted Answer

A)  $1,119,900 
B)  $1,419,000 
C)  $1,384,800 
D)  $1,122,300 
A)  $1,119,900 
B)  $1,419,000 
C)  $1,384,800 
D)  $1,122,300

Question 12

Use the lower-of-cost-or-market rule to determine the value of the following inventory for Bargains Galore, Inc.: $$\begin{array} { l l l l l l } 
\text { Item } & \text { Quantity } & \text { Cost } & \text { Market } & \text { Basis } & \text { Amount } \
\hline \text { raincoats } & 220 & \$ 36 & \$ 33 & & \
 \text { umbrellas } & 180 & 13 & 14 & & \
\text { windbreakers } & 428 & 35 & 33 & & \
\text { computer bag } & 278 & 56 & 50 & & \
\text { briefcase cover } & 318 & 22 & 17 & & \
\hline
\end{array}$$

Accepted Answer

The answer of Use the lower-of-cost-or-market rule to determine the...

Question 13

The annual inventory of Big Wheels Inc. shows the following information for 20-inch tires:   If 36 tires were on hand on December 31, what is the value of the ending inventory using the LIFO method of inventory pricing?

Accepted Answer

A)  $234 
B)  $133 
C)  $165 
D)  $125 
A)  $234 
B)  $133 
C)  $165 
D)  $125

Question 14

Best Value Inc. had net sales of $1,313,930 for the year. If the beginning inventory at retail was $530,800 and the ending inventory at retail was $242,100, find the inventory turnover at retail. (Round your answer to the nearest tenth)

Accepted Answer

The answer of Best Value Inc. had net sales of...

Question 15

During the past year, Franklin Foundries sold 550 wheels. Inventory records for the year are as follows:   Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory.

Accepted Answer

A)  $15,324.00 
B)  $12,300.00 
C)  $19,815.50 
D)  $14,834.50 
A)  $15,324.00 
B)  $12,300.00 
C)  $19,815.50 
D)  $14,834.50

Question 16

A partial inventory of Furniture Mart is shown in the table below. Use the lower-of-cost-or-market rule to calculate the value of the inventory $$\begin{array} { l l l l l l } 
\text { Item } & \text { Quantity } & \text { Cost } & \text { Market } & \text { Basis } & \text { Amount } \
\text { Sofas } & 396 & \$ 1,150 & \$ 1,092 & & \
\text { Beds } & 173 & 7,140 & 5,712 & & \
\text { End tables } & 441 & 5,264 & 6,496 & \
\text { China cabinets } & 497 & 4,797 & 4,290 & & \
\text { Dining sets } & 315 & 2,604 & 2,520 & \
\hline
\end{array}$$

Accepted Answer

A)  $7,512,681 
B)  $6,667,962 
C)  $5,387,897 
D)  $5,999,332 
A)  $7,512,681 
B)  $6,667,962 
C)  $5,387,897 
D)  $5,999,332

Question 17

During the past year, Golden Zippers sold 631 bronze zippers. Inventory records for the year are as follows:   Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory.

Accepted Answer

A)  $19,028.00 
B)  $18,772.00 
C)  $17,172.00 
D)  $17,760.00 
A)  $19,028.00 
B)  $18,772.00 
C)  $17,172.00 
D)  $17,760.00

Question 18

At the start of the year, Bottom Dollar Discounters had inventory worth $197,400 at retail. On December 31, the retail value of the inventory was $318,100. If annual sales amounted to $1,907,350 find the inventory turnover at retail for the year. (Round your answer to the nearest tenth)

Accepted Answer

A)  9.7 
B)  7.4 
C)  6.0 
D)  3.7 
A)  9.7 
B)  7.4 
C)  6.0 
D)  3.7

Question 19

Susan's Salon maintains a gross margin of 58% on all of its merchandise. In April the company had a beginning inventory of $622,500, net purchases of $92,400, and net sales of $127,700. Use the gross profit method to estimate the cost of ending inventory as of April 30.

Accepted Answer

The answer of Susan's Salon maintains a gross margin of...

Question 20

Calculate the average inventory and inventory turnover. If the actual turnover is below the published rate, calculate the target average inventory necessary to come up to industry standards, rounding to the nearest tenth: $$\begin{array} { l l l } 
\text { Cost of Goods Sold } & \text { B eginning Inventory } & \text { Ending Inventory } \
\hline \$ 506,000 & \$ 28,000 & \$ 32,000 \
\$ 183,000 & \$ 25,600 & \$ 28,000 \
\$ 6,520,000 & \$ 1,565,000 & \$ 1,590,000 \
\$ 1,260,000 & \$ 115,000 & \$ 90,000
\end{array}$$ $$\begin{array} { l l l l l } 
& \text { Average } & \text { Inventory } \
\text { Inventory } & \text { Turnover } & \begin{array} { l } 
\text { Published } \
\text { Rate }
\end{array} & \begin{array} { l } 
\text { Target Average } \
\text { Inventory }
\end{array} \
\hline \text { a. } & & 14.3 & \
\text { b. } & & 7.5 & \
\text { c. } & & 5.0 & \
\text { d. } & & 18.0 &
\end{array}$$

Accepted Answer

a.$30,000; 16.9; Turnover is g

The method of inventory estimation using a company's gross margin percent to estimate the ending inventory is called the net income method.

The number of times during an operating period that the average dollars invested in merchandise inventory were theoretically sold out is called inventory ____________________.

The annual inventory of Lowest Price Retailers shows the following information for handheld computers: If 839 handheld computers were in stock on December 31, find the value of the ending inventory using the FIFO method of inventory pricing.

An inventory system in which merchandise is physically counted at least once a year to determine the value of goods available for sale is known as a periodic inventory system.

Rosen's Department Store had 430 big-screen TVs in stock at the end of the year. Inventory records show the following information: Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory.

Use the lower-of-cost-or-market rule to determine the value of the following inventory for Bargains Galore, Inc.: Item Quantity Cost Market Basis Amount raincoats 220 \ 36 \ 33 umbrellas 180 13 14 windbreakers 428 35 33 computer bag 278 56 50 briefcase cover 318 22 17

The annual inventory of Big Wheels Inc. shows the following information for 20-inch tires: If 36 tires were on hand on December 31, what is the value of the ending inventory using the LIFO method of inventory pricing?

Best Value Inc. had net sales of $1,313,930 for the year. If the beginning inventory at retail was $530,800 and the ending inventory at retail was $242,100, find the inventory turnover at retail. (Round your answer to the nearest tenth)

During the past year, Franklin Foundries sold 550 wheels. Inventory records for the year are as follows: Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory.

During the past year, Golden Zippers sold 631 bronze zippers. Inventory records for the year are as follows: Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory.

At the start of the year, Bottom Dollar Discounters had inventory worth $197,400 at retail. On December 31, the retail value of the inventory was $318,100. If annual sales amounted to $1,907,350 find the inventory turnover at retail for the year. (Round your answer to the nearest tenth)

Susan's Salon maintains a gross margin of 58% on all of its merchandise. In April the company had a beginning inventory of $622,500, net purchases of $92,400, and net sales of $127,700. Use the gross profit method to estimate the cost of ending inventory as of April 30.

Whole Numbers

Fractions

Decimals

Checking Accounts

Using Equations to Solve Business Problems

Percents and Their Applications in Business

Invoices, Trade Discounts, and Cash Discounts

Markup and Markdown

Payroll

Simple Interest and Promissory Notes

Compound Interest and Present Value

Annuities

Consumer and Business Credit

Mortgages

Financial Statements and Ratios

Depreciation

Taxes

Insurance

Investments

Business Statistics and Data Presentation

Filters

Exam 16: Inventory

​The method of inventory estimation using a company's gross margin percent to estimate the ending inventory is called the net income method.

The number of times during an operating period that the average dollars invested in merchandise inventory were theoretically sold out is called inventory ____________________.

The annual inventory of Lowest Price Retailers shows the following information for handheld computers: If 839 handheld computers were in stock on December 31, find the value of the ending inventory using the FIFO method of inventory pricing.

An inventory system in which merchandise is physically counted at least once a year to determine the value of goods available for sale is known as a periodic inventory system.​

Rosen's Department Store had 430 big-screen TVs in stock at the end of the year. Inventory records show the following information: Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory.

Use the lower-of-cost-or-market rule to determine the value of the following inventory for Bargains Galore, Inc.: Item Quantity Cost Market Basis Amount raincoats 220 \ 36 \ 33 umbrellas 180 13 14 windbreakers 428 35 33 computer bag 278 56 50 briefcase cover 318 22 17

The annual inventory of Big Wheels Inc. shows the following information for 20-inch tires: If 36 tires were on hand on December 31, what is the value of the ending inventory using the LIFO method of inventory pricing?

Best Value Inc. had net sales of $1,313,930 for the year. If the beginning inventory at retail was $530,800 and the ending inventory at retail was $242,100, find the inventory turnover at retail. (Round your answer to the nearest tenth)

During the past year, Franklin Foundries sold 550 wheels. Inventory records for the year are as follows: Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory.

During the past year, Golden Zippers sold 631 bronze zippers. Inventory records for the year are as follows: Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory.

At the start of the year, Bottom Dollar Discounters had inventory worth $197,400 at retail. On December 31, the retail value of the inventory was $318,100. If annual sales amounted to $1,907,350 find the inventory turnover at retail for the year. (Round your answer to the nearest tenth)

Susan's Salon maintains a gross margin of 58% on all of its merchandise. In April the company had a beginning inventory of $622,500, net purchases of $92,400, and net sales of $127,700. Use the gross profit method to estimate the cost of ending inventory as of April 30.

Whole Numbers

Fractions

Decimals

Checking Accounts

Using Equations to Solve Business Problems

Percents and Their Applications in Business

Invoices, Trade Discounts, and Cash Discounts

Markup and Markdown

Payroll

Simple Interest and Promissory Notes

Compound Interest and Present Value

Annuities

Consumer and Business Credit

Mortgages

Financial Statements and Ratios

Depreciation

Taxes

Insurance

Investments

Business Statistics and Data Presentation

Filters

The method of inventory estimation using a company's gross margin percent to estimate the ending inventory is called the net income method.

An inventory system in which merchandise is physically counted at least once a year to determine the value of goods available for sale is known as a periodic inventory system.