Question 1

Finished goods are a classification of inventory for a manufacturer that are completed and ready for sale.

Accepted Answer

A) True 
 B)False

Question 2

Accountants believe that the write down from cost to net realizable value should not be made in the period in which the price decline occurs.

Accepted Answer

A) True 
 B)False

Question 3

Beginning inventory plus the cost of goods purchased equals

Accepted Answer

A) cost of goods sold. 
B) cost of goods available for sale. 
C) net purchases. 
D) total goods purchased. 
A) cost of goods sold. 
B) cost of goods available for sale. 
C) net purchases. 
D) total goods purchased.

Question 4

At December 31, 2011, Daewoo Inc.reported total assets of W201,295,000, and net income of W50,335,000 for the current year.Daewoo determined that inventory was overstated by W1,600,000 at the beginning of 2012 (this was not corrected).What is Daewoo's corrected amount for total assets for 2011?

Accepted Answer

A) W150,969,000. 
B) W199,695,000. 
C) W202,895,000. 
D) W251,630,000 
A) W150,969,000. 
B) W199,695,000. 
C) W202,895,000. 
D) W251,630,000

Question 5

In applying the LIFO assumption in a perpetual inventory system, the cost of the units most recently purchased prior to sale is allocated first to the units sold.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) £16,900. 
B) £16,960. 
C) £17,069. 
D) £17,082. 
A) £16,900. 
B) £16,960. 
C) £17,069. 
D) £17,082.

Question 7

The cost of goods available for sale is allocated between

Accepted Answer

A) beginning inventory and ending inventory. 
B) beginning inventory and cost of goods on hand. 
C) ending inventory and cost of goods sold. 
D) beginning inventory and cost of goods purchased. 
A) beginning inventory and ending inventory. 
B) beginning inventory and cost of goods on hand. 
C) ending inventory and cost of goods sold. 
D) beginning inventory and cost of goods purchased.

Question 8

Aiwa Inc.uses the average-cost inventory method.Its 2011, the company reported net income of ¥59,800,000.Had average-cost been used, the company would have reported net income of ¥58,900,000.Assuming a 25% tax rate, what is the impact of the inventory cost flow assumption on Aiwa's taxes for 2011?

Accepted Answer

A) Aiwa would pay ¥225,000 less in taxes for 2011 as a result of using the average-cost inventory method rather than FIFO. 
B) Aiwa would pay ¥675,000 less in taxes for 2011 as a result of using the average-cost inventory method rather than FIFO. 
C) the inventory method does not impact the amount of income tax paid. 
D) not determinable without income before taxes. 
A) Aiwa would pay ¥225,000 less in taxes for 2011 as a result of using the average-cost inventory method rather than FIFO. 
B) Aiwa would pay ¥675,000 less in taxes for 2011 as a result of using the average-cost inventory method rather than FIFO. 
C) the inventory method does not impact the amount of income tax paid. 
D) not determinable without income before taxes.

Question 9

The specific identification method of inventory valuation is desirable when a company sells a large number of low-unit cost items.

Accepted Answer

A) True 
 B)False

Question 10

In a period of rising prices which inventory method generally provides the greatest amount of net income?

Accepted Answer

A) Average-cost. 
B) FIFO. 
C) LISH. 
D) Cannot be determined. 
A) Average-cost. 
B) FIFO. 
C) LISH. 
D) Cannot be determined.

Question 11

If beginning inventory is understated by $10,000, the effect of this error in the current period is

Accepted Answer

The answer of If beginning inventory is understated by $10,000,...

Question 12

Use the following information to answer of questions .  
-India East's inventory turnover is

Accepted Answer

A) 2.83 times. 
B) 3.74 times. 
C) 3.85 times. 
D) 3.98 times. 
A) 2.83 times. 
B) 3.74 times. 
C) 3.85 times. 
D) 3.98 times.

Question 13

Use the following information to answer of questions .  
-Bosio's inventory turnover is

Accepted Answer

A) 1.9 times. 
B) 2.1 times. 
C) 3.2 times. 
D) 3.5 times. 
A) 1.9 times. 
B) 2.1 times. 
C) 3.2 times. 
D) 3.5 times.

Question 14

In periods of rising prices, the inventory method which results in the inventory value on the statement of financial position that is closest to current cost is the

Accepted Answer

A) FIFO method. 
B) specific identification method. 
C) average-cost method. 
D) tax method. 
A) FIFO method. 
B) specific identification method. 
C) average-cost method. 
D) tax method.

Question 15

Inventories affect

Accepted Answer

A) only the statement of financial position. 
B) only the income statement. 
C) both the statement of financial position and the income statement. 
D) neither the statement of financial position nor the income statement. 
A) only the statement of financial position. 
B) only the income statement. 
C) both the statement of financial position and the income statement. 
D) neither the statement of financial position nor the income statement.

Question 16

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 days in inventory in 2011 was

Accepted Answer

A)  36.5 days. 
B) 50.0 days. 
C) 38.8 days. 
D) 60.8 days. 
A)  36.5 days. 
B) 50.0 days. 
C) 38.8 days. 
D) 60.8 days.

Question 17

An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory.The effect of this error in the current period is

Accepted Answer

The answer of An error in the physical count of...

Question 18

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

Accepted Answer

A) 94.8 days. 
B) 91.7 days. 
C) 107.4 days. 
D) 75.5 days. 
A) 94.8 days. 
B) 91.7 days. 
C) 107.4 days. 
D) 75.5 days.

Question 19

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

Accepted Answer

The answer of During July, the following purchases and sales...

Question 20

Jenner Company had beginning inventory of $90,000, ending inventory of $110,000, cost of goods sold of 400,000, and sales of 660,000.Jenner's days in inventory is:

Accepted Answer

A)  55.3 days. 
B) 91.3 days. 
C) 101.4 days. 
D) 60.8 days. 
A)  55.3 days. 
B) 91.3 days. 
C) 101.4 days. 
D) 60.8 days.

Finished goods are a classification of inventory for a manufacturer that are completed and ready for sale.

Accountants believe that the write down from cost to net realizable value should not be made in the period in which the price decline occurs.

Beginning inventory plus the cost of goods purchased equals

At December 31, 2011, Daewoo Inc.reported total assets of W201,295,000, and net income of W50,335,000 for the current year.Daewoo determined that inventory was overstated by W1,600,000 at the beginning of 2012 (this was not corrected).What is Daewoo's corrected amount for total assets for 2011?

In applying the LIFO assumption in a perpetual inventory system, the cost of the units most recently purchased prior to sale is allocated first to the units sold.

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

The cost of goods available for sale is allocated between

Aiwa Inc.uses the average-cost inventory method.Its 2011, the company reported net income of ¥59,800,000.Had average-cost been used, the company would have reported net income of ¥58,900,000.Assuming a 25% tax rate, what is the impact of the inventory cost flow assumption on Aiwa's taxes for 2011?

The specific identification method of inventory valuation is desirable when a company sells a large number of low-unit cost items.

In a period of rising prices which inventory method generally provides the greatest amount of net income?

If beginning inventory is understated by $10,000, the effect of this error in the current period is

Use the following information to answer of questions . -India East's inventory turnover is

Use the following information to answer of questions . -Bosio's inventory turnover is

In periods of rising prices, the inventory method which results in the inventory value on the statement of financial position that is closest to current cost is the

Inventories affect

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 days in inventory in 2011 was

An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory.The effect of this error in the current period is

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

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

Jenner Company had beginning inventory of $90,000, ending inventory of $110,000, cost of goods sold of 400,000, and sales of 660,000.Jenner's days in inventory is:

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends,and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Payroll Accounting

Other Significant Liabilities

Filters

Exam 6: Inventories

Finished goods are a classification of inventory for a manufacturer that are completed and ready for sale.

Accountants believe that the write down from cost to net realizable value should not be made in the period in which the price decline occurs.

Beginning inventory plus the cost of goods purchased equals

At December 31, 2011, Daewoo Inc.reported total assets of W201,295,000, and net income of W50,335,000 for the current year.Daewoo determined that inventory was overstated by W1,600,000 at the beginning of 2012 (this was not corrected).What is Daewoo's corrected amount for total assets for 2011?

In applying the LIFO assumption in a perpetual inventory system, the cost of the units most recently purchased prior to sale is allocated first to the units sold.

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

The cost of goods available for sale is allocated between

The specific identification method of inventory valuation is desirable when a company sells a large number of low-unit cost items.

In a period of rising prices which inventory method generally provides the greatest amount of net income?

If beginning inventory is understated by $10,000, the effect of this error in the current period is

Use the following information to answer of questions . -India East's inventory turnover is

Use the following information to answer of questions . -Bosio's inventory turnover is

In periods of rising prices, the inventory method which results in the inventory value on the statement of financial position that is closest to current cost is the

Inventories affect

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 days in inventory in 2011 was

An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory.The effect of this error in the current period is

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

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

Jenner Company had beginning inventory of $90,000, ending inventory of $110,000, cost of goods sold of 400,000, and sales of 660,000.Jenner's days in inventory is:

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends,and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Payroll Accounting

Other Significant Liabilities

Filters