Exam 6: Inventories

Shandy Shutters has the following inventory information. A physical count of merchandise inventory on November 30 reveals that there are 50 units on hand.Assume a periodic inventory system is used.Ending inventory under FIFO is

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

In a period of falling prices, the average-cost method results in a lower cost of goods sold than the FIFO method.

In all cases when average-costing is used, the cost of goods sold would be the same whether a perpetual or periodic system is used.

At December 31, 2011, Murchi Company reported total assets of Rs22,320,000, including inventory of Rs5,580,000 and net income of Rs7,365,600 for 2011.The reported inventory was overstated by Rs1,020,000.Which of the following is true with regard to Murchi's 2011 financial statements (ignore income taxes)?

At year-end, Dana Corporation has 2,000 units of Lolland, 2,000 units of Falster, and 3,000 units of Jultand in its ending inventory.Specific data with respect to each product follows: What amount will Dana report for ending inventory using lower-of-cost-or-net realizable value?

Accounting for inventories under IFRS is very similar to accounting under GAAP.

A company purchased inventory as follows: The average unit cost for inventory is

Never Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCNRV) basis in valuing inventories: If Never applies the LCNRV basis, the value of the inventory reported on the statement of financial position would be

For the current month, the beginning inventory of Elipresse Inc.consisted of 3 units that cost CHF6,500 each.During the month, the company made two purchases: 4 units at CHF6,800 each and 1 units at CHF6,750.Elipresse sold 5 units during the month.If Elipresse uses specific identification and wishes to maximize net income, the units costs allocated to cost of goods sold will be:

Goods out on consignment should be included in the inventory of the consignor.

Net realizable value is

The LIFO cost flow assumption can also be called the LISH assumption.

Carlsberg Corporation has 1,000 units of product#1and 2,000 units of product#2 in its inventory at December 31, 2011.Specific data with respect to each product follows: What amount will be reported on the company statement of financial position at December 31, 2011 for ending inventory using lower-of-cost-or-net realizable value?

Holliday Company's inventory records show the following data: A physical inventory on December 31 shows 2,000 units on hand.Holliday sells the units for ₤6 each.The company has an effective tax rate of 20%.Holliday uses the periodic inventory method.The weighted-average cost per unit is

Inventory is reported in the financial statements at

An auto manufacturer would classify vehicles in various stages of production as

Raw materials inventories are the goods that a manufacturer has completed and are ready to be sold to customers.

Which one of the following inventory methods is often impractical to use?

A physical inventory on December 31 shows 2,000 units on hand.Holliday sells the units for ₤6 each.The company has an effective tax rate of 20%.Holliday uses the periodic inventory method.If the company uses FIFO, what is the gross profit for the period?