Exam 6: Inventories

A physical count of merchandise inventory on July 31 reveals that there are 45 units on hand.Using the FIFO inventory method, the amount allocated to cost of goods sold for July is

Nolvo Company uses the periodic inventory system.For February 2011, the beginning inventory consisted of 100 units that cost CHF65 each.During the month, the company made two purchases: 400 units at CHF68 each and 150 units at $72 each.Nolvo sold 500 units during the month of February at CHF110 per unit.Using the average cost method, what is the amount of ending inventory at February 28, 2011?

Vestle Company uses the periodic inventory system.For January 2011, the beginning inventory consisted of 12,000 units that cost CHF12 each.During the month, the company made two purchases: 5,000 units at CHF13 each and 20,000 units at CHF13.50 each.Vestle sold 21,500 units during the month for CHF19.50 per unit.Using the average-cost method, what is the amount of cost of goods sold for the month of January 2011 (round per unit amount to two decimal places)?

Companies adopt different cost flow methods for each of the following reasons except

Use the following information for questions . -What should be the inventory reported on Queen's July 31 statement of financial position using the FIFO inventory method?

Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a FIFO basis?

The factor which determines whether or not goods should be included in a physical count of inventory is

If goods in transit are shipped FOB destination

Management may choose any inventory costing method it desires as long as the cost flow assumption chosen is consistent with the physical movement of goods in the company.

Of the following companies, which one would not likely employ the specific identification method for inventory costing?

A company just starting business made the following four inventory purchases in June: A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. The inventory method which results in the highest gross profit for June is

The following information was available for Hoover Company at December 31, 2011: beginning inventory $110,000; ending inventory $70,000; cost of goods sold $660,000; and sales $900,000.Hoover's inventory turnover ratio in 2011 was

The selection of an appropriate inventory cost flow assumption for an individual company is made by

The accountant at Reber Company has determined that income before income taxes amounted to $6,750 using the FIFO costing assumption.If the income tax rate is 30% and the amount of income taxes paid would be $225 greater if the average-cost assumption were used, what would be the amount of income before taxes under the average-cost assumption?

Julian Junkets has the following inventory information. Assuming that a perpetual inventory system is used, what is the ending inventory (rounded) under the average-cost method?

During July, the following purchases and sales were made by James Company. There was no beginning inventory.James Company uses a perpetual inventory system.

Which of the following should be included in the physical inventory of a company

Graham Company uses a periodic inventory system.Details for the inventory account for the month of January, 2011 are as follows: An end of the month (1/31/11) inventory showed that 180 units were on hand.How many units did the company sell during January, 2011?

Colletti Company recorded the following data: The weighted average unit cost of the inventory at January 31 is:

The specific identification method of inventory costing