Question 1

Anthony Thomas Candies (ATC) reported the following financial data for 2018 and 2017:   
-ATC's inventory turnover ratio for 2018 is:

Accepted Answer

A)  2.42. 
B)  2.76. 
C)  3.21. 
D)  None of these answer choices are correct. 
A)  2.42. 
B)  2.76. 
C)  3.21. 
D)  None of these answer choices are correct.

Question 2

Linguini Inc. adopted dollar-value LIFO (DVL) as of January 1, 2018, when it had an inventory of $800,000. Its inventory as of December 31, 2018, was $811,200 at year-end costs and the cost index was 1.04. What was DVL inventory on December 31, 2018?

Accepted Answer

A)  $780,000. 
B)  $800,000. 
C)  $811,200. 
D)  $832,000. 
A)  $780,000. 
B)  $800,000. 
C)  $811,200. 
D)  $832,000.

Question 3

Boston Dollar Store uses the gross method to record purchase discounts and uses a perpetual inventory system. Boston engaged in the following transactions during April:
4/12 Purchased $15,000 in merchandise subject to terms of 2/10, n/30. The goods were shipped f.o.b. shipping point.
4/13 Received a billing from Orange Freight Lines for $300 for the 4/12 purchase.
4/15 Returned $1,000 of merchandise from the 4/12 purchase.
4/20 Paid balances due from 4/12 purchase.
Required:
Prepare journal entries to record the above transactions.

Accepted Answer

The answer of Boston Dollar Store uses the gross method...

Question 4

-Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Random Creations uses LIFO and a periodic inventory system.

Accepted Answer

The answer of  
-Required: Compute the January 31 ending...

Question 5

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2018. Missing information has been left blank.

Required: Compute the missing amounts.

-

Accepted Answer

The answer of The following information is taken from the...

Question 6

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Consumer Price Index

Accepted Answer

A) Method not feasible for most inventories. 
B) Most recent purchases will be included in cost of goods sold. 
C) The cost of components purchased from other manufacturers. 
D) Used to convert ending inventory at year-end cost to base year cost. 
E) Could be used instead of an internally generated index in dollar-value LIFO computations. 
A) Method not feasible for most inventories. 
B) Most recent purchases will be included in cost of goods sold. 
C) The cost of components purchased from other manufacturers. 
D) Used to convert ending inventory at year-end cost to base year cost. 
E) Could be used instead of an internally generated index in dollar-value LIFO computations.

Question 7

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Specific identification

Accepted Answer

A) Method not feasible for most inventories. 
B) Most recent purchases will be included in cost of goods sold. 
C) The cost of components purchased from other manufacturers. 
D) Used to convert ending inventory at year-end cost to base year cost. 
E) Could be used instead of an internally generated index in dollar-value LIFO computations. 
A) Method not feasible for most inventories. 
B) Most recent purchases will be included in cost of goods sold. 
C) The cost of components purchased from other manufacturers. 
D) Used to convert ending inventory at year-end cost to base year cost. 
E) Could be used instead of an internally generated index in dollar-value LIFO computations.

Question 8

Liquidated Corporation had a dollar-value LIFO (DVL) inventory of $800,000 at the beginning of the current year when it adopted DVL. Its year-end inventory at year-end prices was $850,000. The index for the current year was 1.08.
Required:
Compute the DVL inventory (rounded) to be reported at the end of the year.

Accepted Answer

DVL with a LIFO Liqu

Question 9

Slinky Company purchased merchandise on June 10, 2018, at a price of $20,000, subject to credit terms of 2/10, n/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system.
Required:
1. Prepare the journal entry to record the purchase.
2. Prepare the journal entry to record the appropriate payment if the entire invoice is paid on June 18, 2018.
3. Prepare the journal entry to record the appropriate payment if the entire invoice is paid on July 8, 2018.

Accepted Answer

The answer of Slinky Company purchased merchandise on June 10,...

Question 10

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Gross method

Accepted Answer

A) Most recent purchases will be included in ending inventory. 
B) 1 - (Cost of goods sold Net sales). 
C) Purchase discounts not taken are included in inventory. 
D) Products that are not yet complete. 
E) Purchase discounts not taken are considered interest expense. 
A) Most recent purchases will be included in ending inventory. 
B) 1 - (Cost of goods sold Net sales). 
C) Purchase discounts not taken are included in inventory. 
D) Products that are not yet complete. 
E) Purchase discounts not taken are considered interest expense.

Question 11

In a periodic inventory system, the cost of inventories sold is:

Accepted Answer

A)  Debited to accounts receivable. 
B)  Credited to cost of goods sold. 
C)  Debited to cost of goods sold. 
D)  Not recorded at the time goods are sold. 
A)  Debited to accounts receivable. 
B)  Credited to cost of goods sold. 
C)  Debited to cost of goods sold. 
D)  Not recorded at the time goods are sold.

Question 12

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

40 units at $100 
70 units at $80 
170 units at $60

Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.
-

Ending inventory using the LIFO method is:

Accepted Answer

A)  $650. 
B)  $1,000. 
C)  $707. 
D)  $600. 
A)  $650. 
B)  $1,000. 
C)  $707. 
D)  $600.

Question 13

On January 1, 2017, ECT Co. adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $600 million. The 2017 and 2018 ending inventory valued at year-end costs were $702 million and $840 million, respectively. The appropriate cost indexes are 1.08 for 2017 and 1.20 for 2018.
Required:
Calculate the inventory balance that ECT Co. would report on its year-end balance sheets for 2017 and 2018, using the dollar-value LIFO method.

Accepted Answer

The answer of On January 1, 2017, ECT Co. adopted...

Question 14

Nueva Company reported the following pretax data for its first year of operations.   
-How much more will Nueva report in income tax if it elects FIFO instead of LIFO?

Accepted Answer

A)  $108. 
B)  $176. 
C)  $248. 
D)  $72. 
A)  $108. 
B)  $176. 
C)  $248. 
D)  $72.

Question 15

Robertson Corporation's inventory balance was $22,000 at the beginning of the year and $20,000 at the end. The inventory turnover ratio for the year was 6.0 and the gross profit ratio 40%. What were net sales for the year?

Accepted Answer

A)  $126,000. 
B)  $200,000. 
C)  $120,000. 
D)  $210,000. 
A)  $126,000. 
B)  $200,000. 
C)  $120,000. 
D)  $210,000.

Question 16

Anthony Thomas Candies (ATC) reported the following financial data for 2018 and 2017:   
-The average days inventory for ATC (rounded) for 2018 is:

Accepted Answer

A)  Less than 100 days. 
B)  114 days. 
C)  132 days. 
D)  151 days. 
A)  Less than 100 days. 
B)  114 days. 
C)  132 days. 
D)  151 days.

Question 17

Chavez Inc. adopted dollar-value LIFO on January 1, 2018, when the inventory value was $850,000. The December 31, 2018, ending inventory at year-end cost was $950,000 and the cost index for the year is 1.08.
Required:
Compute the dollar-value LIFO inventory valuation (rounded) for the December 31, 2018, inventory.

Accepted Answer

The answer of Chavez Inc. adopted dollar-value LIFO on January...

Question 18

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Perpetual inventory system

Accepted Answer

A) Units grouped according to similarities. 
B) Captured by FIFO for perishable products. 
C) Considered a product cost. 
D) Reduces the quality of current period earnings information. 
E) Continuously records changes in inventory. 
A) Units grouped according to similarities. 
B) Captured by FIFO for perishable products. 
C) Considered a product cost. 
D) Reduces the quality of current period earnings information. 
E) Continuously records changes in inventory.

Question 19

During periods when costs are rising and inventory quantities are stable, ending inventory will be:

Accepted Answer

A)  Higher under LIFO than FIFO. 
B)  Lower under average cost than LIFO. 
C)  Higher under average cost than FIFO. 
D)  Higher under FIFO than LIFO. 
A)  Higher under LIFO than FIFO. 
B)  Lower under average cost than LIFO. 
C)  Higher under average cost than FIFO. 
D)  Higher under FIFO than LIFO.

Question 20

-Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Random Creations uses average cost and a perpetual inventory system.

Accepted Answer

Perpetual Average Co

Anthony Thomas Candies (ATC) reported the following financial data for 2018 and 2017: -ATC's inventory turnover ratio for 2018 is:

Linguini Inc. adopted dollar-value LIFO (DVL) as of January 1, 2018, when it had an inventory of $800,000. Its inventory as of December 31, 2018, was $811,200 at year-end costs and the cost index was 1.04. What was DVL inventory on December 31, 2018?

-Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Random Creations uses LIFO and a periodic inventory system.

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2018. Missing information has been left blank. Required: Compute the missing amounts. -

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Consumer Price Index

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Specific identification

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Gross method

In a periodic inventory system, the cost of inventories sold is:

Nueva Company reported the following pretax data for its first year of operations. -How much more will Nueva report in income tax if it elects FIFO instead of LIFO?

Robertson Corporation's inventory balance was $22,000 at the beginning of the year and $20,000 at the end. The inventory turnover ratio for the year was 6.0 and the gross profit ratio 40%. What were net sales for the year?

Anthony Thomas Candies (ATC) reported the following financial data for 2018 and 2017: -The average days inventory for ATC (rounded) for 2018 is:

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Perpetual inventory system

During periods when costs are rising and inventory quantities are stable, ending inventory will be:

-Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Random Creations uses average cost and a perpetual inventory system.

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, Comprehensive Income, and the Statement of Cash Flows

Revenue Recognition

Time Value of Money Concepts

Cash and Receivables

Inventories: Additional Issues

Property, Plant, and Equipment and Intangible Assets: Acquisition

Property, Plant, and Equipment and Intangible Assets: Utilization and Disposition

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes and Error Corrections

The Statement of Cash Flows Revisited

Filters

Exam 8: Inventories: Measurement

Anthony Thomas Candies (ATC) reported the following financial data for 2018 and 2017: -ATC's inventory turnover ratio for 2018 is:

Linguini Inc. adopted dollar-value LIFO (DVL) as of January 1, 2018, when it had an inventory of $800,000. Its inventory as of December 31, 2018, was $811,200 at year-end costs and the cost index was 1.04. What was DVL inventory on December 31, 2018?

-Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Random Creations uses LIFO and a periodic inventory system.

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2018. Missing information has been left blank. Required: Compute the missing amounts. -

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Consumer Price Index

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Specific identification

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Gross method

In a periodic inventory system, the cost of inventories sold is:

Nueva Company reported the following pretax data for its first year of operations. -How much more will Nueva report in income tax if it elects FIFO instead of LIFO?

Robertson Corporation's inventory balance was $22,000 at the beginning of the year and $20,000 at the end. The inventory turnover ratio for the year was 6.0 and the gross profit ratio 40%. What were net sales for the year?

Anthony Thomas Candies (ATC) reported the following financial data for 2018 and 2017: -The average days inventory for ATC (rounded) for 2018 is:

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Perpetual inventory system

During periods when costs are rising and inventory quantities are stable, ending inventory will be:

-Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Random Creations uses average cost and a perpetual inventory system.

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, Comprehensive Income, and the Statement of Cash Flows

Revenue Recognition

Time Value of Money Concepts

Cash and Receivables

Inventories: Additional Issues

Property, Plant, and Equipment and Intangible Assets: Acquisition

Property, Plant, and Equipment and Intangible Assets: Utilization and Disposition

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes and Error Corrections

The Statement of Cash Flows Revisited

Filters