Exam 6: Reporting and Analyzing Inventory

Radical Radials Company has the following inventory data: A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the LIFO inventory method, the amount allocated to ending inventory for July is

The following information is available from the annual reports of Young and Olde: Instructions (a) Calculate the inventory turnover and days in inventory for both companies. (b) Calculate Young's inventory turnover after adjusting for the LIFO reserve. Young uses the LIFO inventory method. (c) What conclusion concerning the management of inventory can be drawn from these data?

Hogan Industries had the following inventory transactions occur during 2014: The company sold 102 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars)

When the terms of sale are FOB shipping point, legal title to the goods remains with the seller until the goods reach the buyer.

Charlene Cosmetics Company just began business and made the following four inventory purchases in June: A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the average cost method, the amount allocated to the ending inventory on June 30 is

Classic Floors has the following inventory data: Assuming that a perpetual inventory system is used, what is the value of ending inventory on a LIFO basis for July?

Ace Company is a retailer operating in an industry that experiences inflation (rising prices). Ace wants the most realistic ending inventory. Which inventory costing method should Ace consider using?

Dole Industries had the following inventory transactions occur during 2014: The company sold 204 units at $126 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $2,000, what is the company's after-tax income using LIFO? (rounded to whole dollars)

If companies have identical inventoriable costs but use different inventory flow assumptions when the price of goods have not been constant, then the

The requirements for accounting for and reporting of inventories under IFRS, compared to GAAP, tend to be more

Goods held on consignment are

Hoover Company had beginning inventory of $15,000 at March 1, 2014. During the month, the company made purchases of $55,000. The inventory at the end of the month is $17,300. What is cost of goods sold for the month of March?

The LIFO method is rarely used because most companies do not sell the last goods they purchase first.

An assumption about cost flow is necessary

Peach Pink Inc. has the following inventory data: A physical count of merchandise inventory on July 30 reveals that there are 25 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is

Laser Listening has the following inventory data: A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Assuming that the specific identification method is used and that ending inventory consists of 30 units from each of the three purchases and 10 units from the November 1 inventory, cost of goods sold is

Dole Industries had the following inventory transactions occur during 2014: The company sold 204 units at $126 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars)

If the unit price of inventory is increasing during a period, a company using the LIFO inventory method will show less gross profit for the period, than if it had used the FIFO inventory method.

Noise Makers Inc has the following inventory data: A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the average cost method, the value of ending inventory is

A company uses the periodic inventory method and the beginning inventory is overstated by $4,000 because the ending inventory in the previous period was overstated by $4,000; the ending inventory for this period is correct. The amounts reflected in the current end of the period balance sheet are