Question 1

On the basis of the following data, estimate the cost of the inventory at March 31 by the retail method.

Accepted Answer

The answer of On the basis of the following data,...

Question 2

​All of the following are documents used for inventory control except

Accepted Answer

A) a ​petty cash voucher 
B) a ​vendor's invoice 
C) ​a receiving report 
D) ​a purchase order 
A) a ​petty cash voucher 
B) a ​vendor's invoice 
C) ​a receiving report 
D) ​a purchase order

Question 3

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work.

Accepted Answer

The answer of On the basis of the following data,...

Question 4

Safeguarding inventory from damage or theft is a primary objective for the control of inventory. If you were running a clothing store, name three specific controls you would implement to guard inventory from theft.

Accepted Answer

Answers will vary but may include ink ta

Question 5

One negative effect of carrying too much inventory is risk that customers will change their buying habits.

Accepted Answer

A) True 
 B)False

Question 6

The inventory costing method that reports the earliest costs in ending inventory is

Accepted Answer

A) FIFO 
B) LIFO 
C) weighted average 
D) specific identification 
A) FIFO 
B) LIFO 
C) weighted average 
D) specific identification

Question 7

Based on the following information, what is (1) inventory turnover; (2) average daily cost of goods sold using a 365 day year; and (3) number of days' sales in inventory.​ Cost of goods sold $195,640
Inventory:
Beginning of year 20,500
End of year 18,628

Accepted Answer

A) (1) 9.9 times (2) $543.44
(3) 36.3 days 
B) (1) 10.5 times (2) $536
(3) 34.8 day 
C) (1) 9.5 times (2) $543.44
(3) 37.7 days 
D) (1) 10 times (2) $536
(3) 36.5 days 
A) (1) 9.9 times (2) $543.44
(3) 36.3 days 
B) (1) 10.5 times (2) $536
(3) 34.8 day 
C) (1) 9.5 times (2) $543.44
(3) 37.7 days 
D) (1) 10 times (2) $536
(3) 36.5 days

Question 8

Match each situation to its impact (a-c) on the current year's net income.
a.Net income for the current year will be overstated.b.Net income for the current year will be understated.c.There will be no error effect on net income.
-Merchandise was purchased FOB destination on the last day of the year. The cost of the merchandise purchased was not included in ending inventory.

Accepted Answer

The answer of Match each situation to its impact (a-c)...

Question 9

Match each description to the appropriate cost flow assumption (a-c).
-Cost of the latest purchases are assigned to ending inventory
A)FIFO
B)LIFO
C)Weighted average

Accepted Answer

The answer of Match each description to the appropriate cost...

Question 10

FIFO reports higher gross profit and net income than the LIFO method when

Accepted Answer

A) prices are increasing 
B) prices are decreasing 
C) prices remain stable 
D) prices are reduced by 50% 
A) prices are increasing 
B) prices are decreasing 
C) prices remain stable 
D) prices are reduced by 50%

Question 11

Ending inventory is made up of the oldest purchases when a company uses

Accepted Answer

A) first-in, first-out 
B) last-in, first-out 
C) average cost 
D) retail method 
A) first-in, first-out 
B) last-in, first-out 
C) average cost 
D) retail method

Question 12

The following units of an inventory item were available for sale during the year. Use this information to answer the following questions.Beginning inventory
10 units at $55
First purchase
25 units at $60
Second purchase
30 units at $65
Third purchase
15 units at $70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.​
-The ending inventory cost rounded to nearest dollar using average cost is:

Accepted Answer

A) $1,353 
B) $1,263 
C) $1,375 
D) $1,150 
A) $1,353 
B) $1,263 
C) $1,375 
D) $1,150

Question 13

Use of the retail inventory method requires taking a physical count of inventory.

Accepted Answer

A) True 
 B)False

Question 14

Use the information below to answer the following questions.The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.  
-Assuming that the company uses the perpetual inventory system, determine the gross profit for the month of May using the LIFO cost method.​

Accepted Answer

A) $348 
B) $452 
C) $444 
D) $356 
A) $348 
B) $452 
C) $444 
D) $356

Question 15

The following data were taken from the annual reports of Big Bang Inc., a manufacturer of fireworks, and Orange Inc., a manufacturer of computers.   (a) Determine the (1) inventory turnover and (2) number of days' sales in inventory for Big Bang and Orange.Round your answers to two decimal places.(b) How would you expect these measures to compare between the companies? Why?

Accepted Answer

The answer of The following data were taken from the...

Question 16

Match each situation to its impact (a-c) on the current year's net income.
a.Net income for the current year will be overstated.b.Net income for the current year will be understated.c.There will be no error effect on net income.
-Merchandise held on consignment was included in the count of ending inventory.

Accepted Answer

The answer of Match each situation to its impact (a-c)...

Question 17

Beginning inventory, purchases, and sales data for widgets are as follows:   Complete the inventory cost card assuming the business maintains a perpetual inventory system and determine the cost of goods sold and ending inventory using LIFO.

Accepted Answer

The answer of Beginning inventory, purchases, and sales data for...

Question 18

On the basis of the following data for Sanford Industries as of December 31, what is the value of the inventory at the lower of cost or market? Apply lower of cost or market to each inventory item.

Accepted Answer

A) $679 
B) $729 
C) $759 
D) $799 
A) $679 
B) $729 
C) $759 
D) $799

Question 19

If ending inventory for the year is overstated, stockholders' equity reported on the balance sheet at the end of the year is understated.

Accepted Answer

A) True 
 B)False

Question 20

The following lots of a Commodity P were available for sale during the year. Use this information to answer the questions that follow.   The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year.​
-What is the amount of cost of goods sold for the year according to the FIFO method?

Accepted Answer

A) $1,380 
B) $1,375 
C) $1,510 
D) $1,250 
A) $1,380 
B) $1,375 
C) $1,510 
D) $1,250

Exam 6: Inventories

On the basis of the following data, estimate the cost of the inventory at March 31 by the retail method.

​All of the following are documents used for inventory control except

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work.

Safeguarding inventory from damage or theft is a primary objective for the control of inventory. If you were running a clothing store, name three specific controls you would implement to guard inventory from theft.

One negative effect of carrying too much inventory is risk that customers will change their buying habits.

The inventory costing method that reports the earliest costs in ending inventory is

Based on the following information, what is (1) inventory turnover; (2) average daily cost of goods sold using a 365 day year; and (3) number of days' sales in inventory.​ Cost of goods sold $195,640 Inventory: Beginning of year 20,500 End of year 18,628

Match each description to the appropriate cost flow assumption (a-c). -Cost of the latest purchases are assigned to ending inventory A)FIFO B)LIFO C)Weighted average

FIFO reports higher gross profit and net income than the LIFO method when

Ending inventory is made up of the oldest purchases when a company uses

Use of the retail inventory method requires taking a physical count of inventory.

Beginning inventory, purchases, and sales data for widgets are as follows: Complete the inventory cost card assuming the business maintains a perpetual inventory system and determine the cost of goods sold and ending inventory using LIFO.

On the basis of the following data for Sanford Industries as of December 31, what is the value of the inventory at the lower of cost or market? Apply lower of cost or market to each inventory item.

If ending inventory for the year is overstated, stockholders' equity reported on the balance sheet at the end of the year is understated.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

The Accounting Cycle

Accounting for Retail Businesses

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

Filters

All of the following are documents used for inventory control except

Based on the following information, what is (1) inventory turnover; (2) average daily cost of goods sold using a 365 day year; and (3) number of days' sales in inventory. Cost of goods sold $195,640 Inventory: Beginning of year 20,500 End of year 18,628