Exam 9: Inventory

During year ended 30 June 2019, Rugger Ltd had net sales of $256 000. Inventory at 1 July 2018 was $30 000, and at 30 June 2019 it was $23 000. Purchases were $115 000. What was the gross profit for year ended 30 June 2019?

Which of the following is NOT an advantage of the perpetual over the periodic inventory method?

Diligent Ltd had five units of the commodity Algo on hand at 1 September 2019. The following purchases and sales were made during September: What was the value of ending inventory of Algo, using the moving weighted average assumption and a perpetual inventory system?

Diligent Ltd had five units of the commodity Algo on hand at 1 September 2019. The following purchases and sales were made during September: What was the value of ending inventory of Algo, using the FIFO assumption?

Which of the following statements about the use of the FIFO assumption is NOT true?

Which of the following is NOT an advantage of the perpetual inventory system over the periodic inventory system?

Diligent Ltd had five units of the commodity Algo on hand at 1 September 2019. The following purchases and sales were made during September: What was the value of cost of goods sold of Algo, using the LIFO assumption in a perpetual inventory system?

Diligent Ltd had five units of the commodity Algo on hand at 1 September 2019. The following purchases and sales were made during September: What was the value of ending inventory of Algo, using the LIFO assumption in a periodic inventory system?

The following information relates to Moderate Ltd: What were the purchases for the period?

Diligent Ltd had five units of the commodity Algo on hand at 1 September 2019. The following purchases and sales were made during September: What was the value of cost of goods sold of Algo, using the FIFO assumption?

Which, if any, of the following cost flow assumptions is NOT affected by whether a periodic or perpetual control system is used?

The following lots of a particular commodity were available for sale during the year: 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 inventory at the end of the year, according to the first-in, first-out method?

A company discovered that inventory that cost $2 000 and normally sells for $2 400 has become obsolete and will be scrapped next month. The effect of the adjusting journal entry is to:

Raw materials of inventory were purchased on credit for $350 000. The company uses the perpetual method. This transaction will:

Diligent Ltd had five units of the commodity Algo on hand at 1 September 2019. The following purchases and sales were made during September: What was the value of ending inventory of Algo, using the LIFO assumption in a perpetual inventory system?

Use the information below to answer the following question. Pinkerton Ltd uses a perpetual control system for its inventory. It had the following data for a recent period: If Pinkerton Ltd had employed the periodic inventory method, what would its gross profit have been?

Which of the following statements about the perpetual inventory control method is NOT true?

Diligent Ltd had five units of the commodity Algo on hand at 1 September 2019. The following purchases and sales were made during September: What was the value of cost of goods sold of Algo, using the moving weighted average assumption and a perpetual inventory system?

During the year ended 30 June 2019, Rico Ltd had net sales of $750 000 and net purchases of $470 000. Cost of goods sold was $475 000. What was Rico Ltd's gross profit for the year ended 30 June 2019?

A company has four products and has 100 units of each in stock. The cost and net realisable value of each of the products are: The value of inventory in the balance sheet should be: