Barnett Company had the following records: $\begin{array}{lll}&2022&2021\\ \text { Ending inventory } & \$ 32,650 & \$ 30,490 \\ \text { Cost of qoods sold } & 306,300 & 313,600 \end{array}$ What is Barnett's average days in inventory for 2022? (rounded)

A) 37.6 days B) 38.8 days C) 36.9 days D) 36.5 days A) 37.6 days B) 38.8 days C) 36.9 days D) 36.5 days

Dole Industries had the following inventory transactions occur during 2022: \[\begin{array} { r l c c } & & \text { Units } & \text { Cost'unit } \\ \text { Feb. } 1,2022 & \text { Purchase } & 90 & \$ 90 \\ \text { Mar. 14,2022 } & \text { Purchase } & 155 & \$ 94 \\ \text { May 1, } 2022 & \text { Purchase } & 110 & \$ 98 \end{array}\] The company sold 255 units at $126 each and has a tax rate of 30%.Assuming that a periodic inventory system is used what is the company's gross profit using LIFO? (rounded to whole dollars)

A) $24410 B) $23650 C) $8480 D) $7720 A) $24410 B) $23650 C) $8480 D) $7720

Hogan Industries had the following inventory transactions occur during 2022: \[\begin{array} { r l l c } & & \text { Units } & \text { Cost/unit } \\ \text { Feb. 1, 2022 } & \text { Purchase } & 108 & \$ 45 \\ \text { Mar. 14,2022 } & \text { Purchase } & 186 & \$ 47 \\ \text { May 1, } 2022 & \text { Purchase } & 132 & \$ 49 \end{array}\] The company sold 306 units at $63 each and has a tax rate of 30%.Assuming that a periodic inventory system is used what is the company's gross profit using FIFO? (rounded to whole dollars)

A) $14646 B) $14190 C) $5088 D) $4632 A) $14646 B) $14190 C) $5088 D) $4632

Sassy Saxophones has the following inventory data: \[\begin{array} { r l l } \text { July } 1 & \text { Beginning inventory } & 50 \text { units at } \$ 120 \\ 5 & \text { Purchases } & 300 \text { units at } \$ 112 \\ 14 & \text { Sale } & 200 \text { units } \\ 21 & \text { Purchases } & 150 \text { units at } \$ 115 \\ 30 & \text { Sale } & 140 \text { units } \end{array}\] Assuming that a periodic inventory system is used what is the amount allocated to ending inventory on a LIFO basis?

A) $18320 B) $18370 C) $38480 D) $38530 A) $18320 B) $18370 C) $38480 D) $38530

Use the following information regarding Black Company and Red Company to answer the question "Which of the following is Red Company's "cost of goods sold" for 2022 (to the closest dollar)?" \[\begin{array}{l} \begin{array} { | l | c | c | c | } \hline & \text { Year } & \begin{array} { c } \text { Inventory } \\ \text { Turnover } \end{array} & \text { Ending Inventory } \\ \hline \text { Black Company } & 2020 & & \$ 26,340 \\ \hline & 2021 & 8.7 & \$ 29,890 \\ \hline & 2022 & 8.4 & \$ 30,100 \\ \hline \\ \hline \text { Red Company } & 2020 & & \$ 25,860 \\ \hline & 2021 & 7.0 & \$ 24,750 \\ \hline & 2022 & 7.5 & \$ 22,530 \\ \hline \end{array} \end{array}\]

A) $260043 B) $189788 C) $168975 D) $177300 A) $260043 B) $189788 C) $168975 D) $177300

Peach Pink Inc.has the following inventory data: \[\begin{array} { r l r r } \text { July } 1 & \text { Beginning inventory } & 40 \text { units at } \$ 20 & \$ 800 \\ 7 & \text { Purchases } & 140 \text { units at } \$ 21 & 2,940 \\ 22 & \text { Purchases } & 20 \text { units at } \$ 22 & 440\\&&&\$4,180 \end{array}\] A physical count of merchandise inventory on July 31 reveals that there are 50 units on hand.Using the FIFO inventory method the amount allocated to cost of goods sold for July is

A) $3110. B) $3170. C) $3010. D) $3080. A) $3110. B) $3170. C) $3010. D) $3080.

Charlene Cosmetics Company just began business and made the following four inventory purchases in June: \[\begin{array} { r r r r } \text { June } & 1 & 150 \text { units } & \$ 1,040 \\ \text { June } & 10 & 200 \text { units } & 1,560 \\ \text { June } & 15 & 200 \text { units } & 1,680 \\ \text { June } & 28 & 150 \text { units } & 1,320 \\ & & & \$ 5,600 \\ \hline \end{array}\] A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand.Using the average cost method the amount allocated to the ending inventory on June 30 is

A) $1639. B) $1824. C) $1764. D) $1680. A) $1639. B) $1824. C) $1764. D) $1680.

Dobler Company uses a periodic inventory system.Details for the inventory account for the month of January 2022 are as follows: \[\begin{array} { l l r r } & \underline { \text { Units } } & \underline{\text { Per unit price }} & \underline { \text { Total } } \\ \text { Balance, } 1 / 1 / 2022 & 300 & \$ 5.00 & \$ 1,500 \\ \text { Purchase, } 1 / 15 / 2022 & 150 & 5.30 & 795 \\ \text { Purchase, } 1 / 28 / 2022 & 150 & 5.50 & 825 \end{array}\] An end of the month (1/31/2022) inventory showed that 240 units were on hand.If the company uses LIFO what is the value of the ending inventory?

A) $1264 B) $1200 C) $1302 D) $1920 A) $1264 B) $1200 C) $1302 D) $1920

Quark Inc.just began business and made the following four inventory purchases in June: \[\begin{array} { r r r r } \text { June } & 1 & 150 \text { units } & \$ 990 \\ \text { June } & 10 & 200 \text { units } & 1,344 \\ \text { June } & 15 & 200 \text { units } & 1,368 \\ \text { June } & 28 & 150 \text { units } & 1,062 \\ & & & \$ 4,764 \end{array}\] A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand.Using the FIFO inventory method the amount allocated to ending inventory for June is

A) $1326. B) $1320. C) $1404. D) $1416. A) $1326. B) $1320. C) $1404. D) $1416.

Use the following information regarding Black Company and Red Company to answer the question "Which amount is equal to Red Company's "days in inventory" for 2021 (to the closest decimal place)?" \[\begin{array}{l} \begin{array} { | l | c | c | c | } \hline & \text { Year } & \begin{array} { c } \text { Inventory } \\ \text { Turnover } \end{array} & \text { Ending Inventory } \\ \hline \text { Black Company } & 2020 & & \$ 26,340 \\ \hline & 2021 & 8.7 & \$ 29,890 \\ \hline & 2022 & 8.4 & \$ 30,100 \\ \hline \\ \hline \text { Red Company } & 2020 & & \$ 25,860 \\ \hline & 2021 & 7.0 & \$ 24,750 \\ \hline & 2022 & 7.5 & \$ 22,530 \\ \hline \end{array} \end{array}\]

A) 43.5 days B) 48.7 days C) 42.0 days D) 52.1 days A) 43.5 days B) 48.7 days C) 42.0 days D) 52.1 days

Exam 6: Reporting and Analyzing Long-Lived Assets

Barnett Company had the following records: 2022 2021 Ending inventory \ 32,650 \ 30,490 Cost of qoods sold 306,300 313,600 What is Barnett's average days in inventory for 2022? (rounded)

(Multiple Choice)

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Question 101

The LIFO inventory method agrees with the actual physical movement of goods in most businesses.

(True/False)

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Question 102

Dole Industries had the following inventory transactions occur during 2022: Units Cost'unit Feb. 1,2022 Purchase 90 \ 90 Mar. 14,2022 Purchase 155 \ 94 May 1, 2022 Purchase 110 \ 98 The company sold 255 units at $126 each and has a tax rate of 30%.Assuming that a periodic inventory system is used what is the company's gross profit using LIFO? (rounded to whole dollars)

(Multiple Choice)

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Question 103

Inventory methods such as FIFO and LIFO deal more with the flow of costs than with the flow of goods.

(True/False)

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Question 104

If a company uses the allowance method to account for uncollectible accounts the company records a write-off to an uncollectible account that only involves balance sheet accounts.

(True/False)

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Question 105

The following information was available for Camara Company at December 31 2022: beginning inventory $80000; ending inventory $120000; cost of goods sold $630000; and sales $900000.Camara's inventory turnover in 2022 was

(Multiple Choice)

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Question 106

Hogan Industries had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1, 2022 Purchase 108 \ 45 Mar. 14,2022 Purchase 186 \ 47 May 1, 2022 Purchase 132 \ 49 The company sold 306 units at $63 each and has a tax rate of 30%.Assuming that a periodic inventory system is used what is the company's gross profit using FIFO? (rounded to whole dollars)

(Multiple Choice)

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Question 107

Allowance for Doubtful Accounts is decreased under the direct write-off method when an account is determined to be uncollectible.

(True/False)

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Question 108

Sassy Saxophones has the following inventory data: July 1 Beginning inventory 50 units at \ 120 5 Purchases 300 units at \ 112 14 Sale 200 units 21 Purchases 150 units at \ 115 30 Sale 140 units Assuming that a periodic inventory system is used what is the amount allocated to ending inventory on a LIFO basis?

(Multiple Choice)

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Question 109

Under the allowance method when a year-end adjustment is made for estimated uncollectible accounts

(Multiple Choice)

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Question 110

Use the following information regarding Black Company and Red Company to answer the question "Which of the following is Red Company's "cost of goods sold" for 2022 (to the closest dollar)?" Year Inventory Turnover Ending Inventory Black Company 2020 \ 26,340 2021 8.7 \ 29,890 2022 8.4 \ 30,100 Red Company 2020 \ 25,860 2021 7.0 \ 24,750 2022 7.5 \ 22,530

(Multiple Choice)

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Question 111

Peach Pink Inc.has the following inventory data: July 1 Beginning inventory 40 units at \ 20 \ 800 7 Purchases 140 units at \ 21 2,940 22 Purchases 20 units at \ 22 440 \4 ,180 A physical count of merchandise inventory on July 31 reveals that there are 50 units on hand.Using the FIFO inventory method the amount allocated to cost of goods sold for July is

(Multiple Choice)

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Question 112

Ace Company is a retailer operating in an industry that experiences inflation (rising prices).Ace wants the most realistic ending inventory.Which inventory costing method should Ace consider using?

(Multiple Choice)

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Question 113

Charlene Cosmetics Company just began business and made the following four inventory purchases in June: June 1 150 units \ 1,040 June 10 200 units 1,560 June 15 200 units 1,680 June 28 150 units 1,320 \ 5,600 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand.Using the average cost method the amount allocated to the ending inventory on June 30 is

(Multiple Choice)

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Question 114

Using the allowance method the uncollectible accounts for the year is estimated to be $50000.If the balance for the Allowance for Doubtful Accounts is $9000 before adjustment what is the amount of bad debt expense for the period?

(Multiple Choice)

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Question 115

Dobler Company uses a periodic inventory system.Details for the inventory account for the month of January 2022 are as follows: Balance, 1/1/2022 300 \ 5.00 \ 1,500 Purchase, 1/15/2022 150 5.30 795 Purchase, 1/28/2022 150 5.50 825 An end of the month (1/31/2022) inventory showed that 240 units were on hand.If the company uses LIFO what is the value of the ending inventory?

(Multiple Choice)

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Question 116

Quark Inc.just began business and made the following four inventory purchases in June: June 1 150 units \ 990 June 10 200 units 1,344 June 15 200 units 1,368 June 28 150 units 1,062 \ 4,764 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand.Using the FIFO inventory method the amount allocated to ending inventory for June is

(Multiple Choice)

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Question 117

Under the direct write-off method of accounting for uncollectible accounts Bad Debt Expense is increased

(Multiple Choice)

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Question 118

Use the following information regarding Black Company and Red Company to answer the question "Which amount is equal to Red Company's "days in inventory" for 2021 (to the closest decimal place)?" Year Inventory Turnover Ending Inventory Black Company 2020 \ 26,340 2021 8.7 \ 29,890 2022 8.4 \ 30,100 Red Company 2020 \ 25,860 2021 7.0 \ 24,750 2022 7.5 \ 22,530

(Multiple Choice)

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Question 119

If bad debt losses are significant the direct write-off method is acceptable for financial reporting purposes.

(True/False)

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Question 120

Barnett Company had the following records: 2022 2021 Ending inventory \ 32,650 \ 30,490 Cost of qoods sold 306,300 313,600 What is Barnett's average days in inventory for 2022? (rounded)

The LIFO inventory method agrees with the actual physical movement of goods in most businesses.

Inventory methods such as FIFO and LIFO deal more with the flow of costs than with the flow of goods.

If a company uses the allowance method to account for uncollectible accounts the company records a write-off to an uncollectible account that only involves balance sheet accounts.

The following information was available for Camara Company at December 31 2022: beginning inventory $80000; ending inventory $120000; cost of goods sold $630000; and sales $900000.Camara's inventory turnover in 2022 was

Allowance for Doubtful Accounts is decreased under the direct write-off method when an account is determined to be uncollectible.

Under the allowance method when a year-end adjustment is made for estimated uncollectible accounts

Ace Company is a retailer operating in an industry that experiences inflation (rising prices).Ace wants the most realistic ending inventory.Which inventory costing method should Ace consider using?

Using the allowance method the uncollectible accounts for the year is estimated to be $50000.If the balance for the Allowance for Doubtful Accounts is $9000 before adjustment what is the amount of bad debt expense for the period?

Under the direct write-off method of accounting for uncollectible accounts Bad Debt Expense is increased

If bad debt losses are significant the direct write-off method is acceptable for financial reporting purposes.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

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