Question 1

Overhead expenses are allocated to particular departments:

Accepted Answer

A) Strictly on floor space 
B) Strictly on sales volume 
C) Based on a ratio of space to sales volume 
D) By floor space or sales volume 
E) None of these 
A) Strictly on floor space 
B) Strictly on sales volume 
C) Based on a ratio of space to sales volume 
D) By floor space or sales volume 
E) None of these D

Question 2

Match the following terms with their definitions.
-Gross profit method

Accepted Answer

A) Average cost for that period for inventory 
B) Inventory continually updated 
C) (Beginning inventory and ending inventory)÷ 2 
D) New inventory sold first 
E) Cost percentage
F)Inventory not updated continually
G)Each cost is known
H)Old inventory sold first
I)A ratio
J)A ratio used to calculate cost of ending inventory
K)Operating expenses not directly associated with a specific department 
A) Average cost for that period for inventory 
B) Inventory continually updated 
C) (Beginning inventory and ending inventory)÷ 2 
D) New inventory sold first 
E) Cost percentage
F)Inventory not updated continually
G)Each cost is known
H)Old inventory sold first
I)A ratio
J)A ratio used to calculate cost of ending inventory
K)Operating expenses not directly associated with a specific department E

Question 3

To use the retail method of estimating ending inventory, the figure for net sales at retail must be known.

Accepted Answer

A) True 
 B)False  True

Question 4

Bauer Supply had total cost of goods sold of $1,400 with 140 units available for sales. What was the average cost per unit?

Accepted Answer

A) $10 
B) $14 
C) $140 
D) $14.10 
E) None of these 
A) $10 
B) $14 
C) $140 
D) $14.10 
E) None of these

Question 5

Calculate the average inventory for the following:
Beginning Inventory: $29,600
Ending Inventory: $6,500

Accepted Answer

($29,600 +

Question 6

Match the following terms with their definitions.
-Specific identification

Accepted Answer

A) Average cost for that period for inventory 
B) Inventory continually updated 
C) (Beginning inventory and ending inventory)÷ 2 
D) New inventory sold first 
E) Cost percentage
F)Inventory not updated continually
G)Each cost is known
H)Old inventory sold first
I)A ratio
J)A ratio used to calculate cost of ending inventory
K)Operating expenses not directly associated with a specific department 
A) Average cost for that period for inventory 
B) Inventory continually updated 
C) (Beginning inventory and ending inventory)÷ 2 
D) New inventory sold first 
E) Cost percentage
F)Inventory not updated continually
G)Each cost is known
H)Old inventory sold first
I)A ratio
J)A ratio used to calculate cost of ending inventory
K)Operating expenses not directly associated with a specific department

Question 7

Bill Company's total overhead for a recent year was $100,000. Department A. occupies 18,500 sq. ft., Department B. 12,000 sq. ft., and Department C. 4,000 sq. ft. What is amount of overhead allocated to Department B? (Round to the nearest whole percent.)

Accepted Answer

18,500 + 12,000 + 4,000 = 34,5

Question 8

Given the following: LIFO method 250 units left in inventory $$\begin{array} { | l | l | l | } 
\hline \text { Beginning inventory } & 200 \text { units at } \$ 6 & \$ 1,200 \
\hline \text { Purchases: } & & \
\hline \text { Apr 10 } & 400 \text { units at } \$ 7 & \$ 2,800 \
\hline \text { May 15 } & 250 \text { units at } \$ 7 & \$ 1,600 \
\hline \text { Tuly } 9 & 200 \text { units at } \$ 8 & \$ 1,600 \
\hline \text { Oct } 8 & 100 \text { units at } \$ 11 & \$ 1,100 \
\hline
\end{array}$$ The cost of ending inventory is:

Accepted Answer

A) $1,550 
B) $2,300 
C) $1,200 
D) $3,200 
E) None of these 
A) $1,550 
B) $2,300 
C) $1,200 
D) $3,200 
E) None of these

Question 9

A perpetual inventory system continually updates inventory records.

Accepted Answer

A) True 
 B)False

Question 10

Javon Corp. had a beginning inventory of 300 cans of paint on January 1, at a cost of $2,100. During the year, the following purchases were made:
 $$\begin{array} { | l | l | } 
\hline \text { February } 15 & 200 \text { cans at } \$ 8 \text { each } \
\hline \text { May } 5 & 250 \text { cans at } \$ 10 \text { each } \
\hline \text { December } 8 & 100 \text { cans at } \$ 12 \text { each } \
\hline
\end{array}$$ Assuming 310 cans were left in inventory, what is the cost of ending inventory under the LIFO method?

Accepted Answer

The answer of Javon Corp. had a beginning inventory of...

Question 11

In the specific identification method, the total cost of ending inventory is equal to the number of units not sold times the actual cost per unit.

Accepted Answer

A) True 
 B)False

Question 12

With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is:

Accepted Answer

A) 5.75 
B) 7.55 
C) 5.57 
D) 7.57 
E) None of these 
A) 5.75 
B) 7.55 
C) 5.57 
D) 7.57 
E) None of these

Question 13

Clay's Fishing Shop's beginning inventory is $70,000 and ending inventory is $36,500. What was Clay's average inventory?

Accepted Answer

A) $53,250 
B) $48,000 
C) $35,000 
D) $18,250 
E) None of these 
A) $53,250 
B) $48,000 
C) $35,000 
D) $18,250 
E) None of these

Question 14

The specific identification method is able to identify in the ending inventory the actual invoice cost associated with it.

Accepted Answer

A) True 
 B)False

Question 15

Bob's Clothing Shop's inventory at cost was $30,000 on January 1. Its retail value is $42,000. During the year, Bob's Clothing Shop purchased additional merchandise at a cost of $196,000 with a retail value of $368,000. The net sales at retail for the year were $310,000. Calculate Bob's inventory at cost by the retail method. Round the cost ratio to the nearest whole percent.

Accepted Answer

Retail = ($42,000 + $368,000)=

Question 16

Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is:

Accepted Answer

A) $28.00 
B) $12.00 
C) $21.00 
D) $3.50 
E) None of these 
A) $28.00 
B) $12.00 
C) $21.00 
D) $3.50 
E) None of these

Question 17

Calculate cost of ending inventory using the retail method:
 $$\begin{array} { | l | c | c | } 
\hline & \text { Cost } & \text { Retail Price } \
\hline \text { Beginning Inventory } & \$ 60,000 & \$ 102,000 \
\hline \text { Purchases during the year } & \$ 25,000 & \$ 40,000 \
\hline \text { Sales for Year } & \$ 60,000 & \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate cost of ending inventory using the...

Question 18

Complete (assume $100,000 of overhead to be distributed):
 $$\begin{array} { | l | l | l | l | } 
\hline & \text { Sq Ft } & \text { Ratio } & \text { Amt of Overhead Allocated } \
\hline \text { Department A } & 25,000 & \text { A } & \text { B } \
\hline \text { Department B } & 75,000 & \text { C } & \text { D } \
\hline
\end{array}$$

Accepted Answer

A. 25; B.

Question 19

Moore Co. has a beginning inventory at a cost of $50,000 and an ending inventory at a cost of $90,000. Sales were $150,000. Assume Moore's markup rate is 40%. Based on the selling price, what is the inventory turnover at cost? (Round to the nearest hundredth.)

Accepted Answer

($50,000 + $90,000)/

Question 20

Perpetual inventory does not have this characteristic:

Accepted Answer

A) Made easier by the increased use of computers 
B) Verified at some point by a physical count 
C) Usually used by small stores 
D) Utilizes scanners, computers, etc. 
E) None of these 
A) Made easier by the increased use of computers 
B) Verified at some point by a physical count 
C) Usually used by small stores 
D) Utilizes scanners, computers, etc. 
E) None of these

Overhead expenses are allocated to particular departments:

Match the following terms with their definitions. -Gross profit method

To use the retail method of estimating ending inventory, the figure for net sales at retail must be known.

Bauer Supply had total cost of goods sold of $1,400 with 140 units available for sales. What was the average cost per unit?

Calculate the average inventory for the following: Beginning Inventory: $29,600 Ending Inventory: $6,500

Match the following terms with their definitions. -Specific identification

Bill Company's total overhead for a recent year was $100,000. Department A. occupies 18,500 sq. ft., Department B. 12,000 sq. ft., and Department C. 4,000 sq. ft. What is amount of overhead allocated to Department B? (Round to the nearest whole percent.)

Given the following: LIFO method 250 units left in inventory Beginning inventory 200 units at \ 6 \ 1,200 Purchases: Apr 10 400 units at \ 7 \ 2,800 May 15 250 units at \ 7 \ 1,600 Tuly 9 200 units at \ 8 \ 1,600 Oct 8 100 units at \ 11 \ 1,100 The cost of ending inventory is:

A perpetual inventory system continually updates inventory records.

In the specific identification method, the total cost of ending inventory is equal to the number of units not sold times the actual cost per unit.

With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is:

Clay's Fishing Shop's beginning inventory is $70,000 and ending inventory is $36,500. What was Clay's average inventory?

The specific identification method is able to identify in the ending inventory the actual invoice cost associated with it.

Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is:

Calculate cost of ending inventory using the retail method: Cost Retail Price Beginning Inventory \ 60,000 \ 102,000 Purchases during the year \ 25,000 \ 40,000 Sales for Year \ 60,000

Complete (assume $100,000 of overhead to be distributed): Sq Ft Ratio Amt of Overhead Allocated Department A 25,000 A B Department B 75,000 C D

Moore Co. has a beginning inventory at a cost of $50,000 and an ending inventory at a cost of $90,000. Sales were $150,000. Assume Moore's markup rate is 40%. Based on the selling price, what is the inventory turnover at cost? (Round to the nearest hundredth.)

Perpetual inventory does not have this characteristic:

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Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

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Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

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How to Read, Analyze, and Interpret Financial Reports

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Exam 18: Inventory and Overhead

Overhead expenses are allocated to particular departments:

Match the following terms with their definitions. -Gross profit method

To use the retail method of estimating ending inventory, the figure for net sales at retail must be known.

Bauer Supply had total cost of goods sold of $1,400 with 140 units available for sales. What was the average cost per unit?

Calculate the average inventory for the following: Beginning Inventory: $29,600 Ending Inventory: $6,500

Match the following terms with their definitions. -Specific identification

Bill Company's total overhead for a recent year was $100,000. Department A. occupies 18,500 sq. ft., Department B. 12,000 sq. ft., and Department C. 4,000 sq. ft. What is amount of overhead allocated to Department B? (Round to the nearest whole percent.)

Given the following: LIFO method 250 units left in inventory Beginning inventory 200 units at \ 6 \ 1,200 Purchases: Apr 10 400 units at \ 7 \ 2,800 May 15 250 units at \ 7 \ 1,600 Tuly 9 200 units at \ 8 \ 1,600 Oct 8 100 units at \ 11 \ 1,100 The cost of ending inventory is:

A perpetual inventory system continually updates inventory records.

In the specific identification method, the total cost of ending inventory is equal to the number of units not sold times the actual cost per unit.

With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is:

Clay's Fishing Shop's beginning inventory is $70,000 and ending inventory is $36,500. What was Clay's average inventory?

The specific identification method is able to identify in the ending inventory the actual invoice cost associated with it.

Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is:

Calculate cost of ending inventory using the retail method: Cost Retail Price Beginning Inventory \ 60,000 \ 102,000 Purchases during the year \ 25,000 \ 40,000 Sales for Year \ 60,000

Complete (assume $100,000 of overhead to be distributed): Sq Ft Ratio Amt of Overhead Allocated Department A 25,000 A B Department B 75,000 C D

Moore Co. has a beginning inventory at a cost of $50,000 and an ending inventory at a cost of $90,000. Sales were $150,000. Assume Moore's markup rate is 40%. Based on the selling price, what is the inventory turnover at cost? (Round to the nearest hundredth.)

Perpetual inventory does not have this characteristic:

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Sales, Excise, and Property Taxes

Life, Fire, and Auto Insurance

Stocks, Bonds, and Mutual Funds

Business Statistics

Filters