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.Cost of goods sold under the average-cost method is

Use the following information for questions . -The value assigned to cost of goods sold if Brocken uses average-cost is

Breguet Company uses the FIFO inventory method.The company reported inventory of CHF2,230,000 on its December 31, 2011 statement of financial position.Had average-cost been used, the company would have reported inventory of CHF1,860,000.The company's tax rate is 30% what is the impact of the inventory cost flow assumption on Breguet's 2011 financial statements?

Which costing method cannot be used to determine the cost of inventory items before lower-of-cost-or-net realizable value market is applied?

Franco Company uses the FIFO inventory method.Its 2010, the company reported net income of €840,000.Had average-cost been used, the company would have reported net income of €760,000.Assuming a 40% tax rate, what is the impact of the inventory cost flow assumption on Franco's taxes for 2010?

In a manufacturing business, inventory that is ready for sale is called

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. Under the FIFO method, the December 31 inventory is valued at

Manufacturers usually classify inventory into all the following general categories except:

Use the following information to answer of questions . -The average days to sell inventory for Bosio is

Use of the FIFO inventory valuation method enables a company to report higher net income when in a period of falling prices.

Disclosures about inventory should include each of the following except the

If the inventory reported on a Gottleib Company's statement of financial position at December 31, 2010 is overstated by €1,200,000, the company's retained earnings balance at December 31, 2011 will be

Kershaw Bookstore had 600 units on hand at January 1, costing €18 each.Purchases and sales during the month of January were as follows: Kershaw does not maintain perpetual inventory records.According to a physical count, 450 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is:

The more inventory a company has in stock, the greater the company's profit.

Items not yet placed into production are considered to be

The gross profit method is based on the assumption that the rate of gross profit remains constant from one year to the next.

Widner Company understated its inventory by $10,000 at December 31, 2010.It did not correct the error in 2010 or 2011.As a result, Widner's equity was:

The inventory reported on Lazzard Company's statement of financial position is understated by £1,250,000.The company's reported net income for the period will be

Julian Junkets has the following inventory information. Assuming that a perpetual inventory system is used, what is the ending inventory on a FIFO basis?

Paulson, Inc.has 5 computers which have been part of the inventory for over two years.Each computer cost ₤600 and originally retailed for ₤825.At the statement date, each computer has a net realizable value of ₤350.How much loss should Paulson, Inc., record for the year?