Exam 7: Inventory

The following data represent the beginning inventory and, in the order of occurrence, the purchases and sales of McKensie Company for an operating period. -Assuming McKensie Company uses FIFO periodic inventory procedures, the ending inventory cost is:

A firm's inventory turnover:

The following amounts and costs of platters were available for sale by Sierra Pottery during the year: Sierra Pottery has 35 platters on hand at the end of the year. How much is cost of goods sold in dollars at the end of the year according to the weighted-average cost method?

Use the following information for Questions below The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Newtown, Inc. for an operating period -Assuming Newtown, Inc., uses FIFO perpetual inventory procedures, it records sale no. 2 as an entry to Cost of Goods Sold for:

Red Star Software Company's 2019 balance sheet reveals that inventories reported on a LIFO basis are $5,620 million. In a footnote, management stated that the LIFO reserve was $800 million. a. How much would Red Star Software's ending inventory be using FIFO? b. What is the total cumulative tax effect of using LIFO given a 35% income tax rate?

The following are 2019 inventory data for Chavez Company, which uses a perpetual inventory system. Ending inventory at December 31 is 50 units. Compute the cost of the ending inventory using the following methods: a. First-in, first-out b. Weighted-average c. Last-in, first-out

Benson Company, which uses the periodic inventory system, has the following records for the year: Ending inventory at December 31 is 80 units. Compute the cost of the ending inventory and the cost of goods sold using the following methods: a. FIFO b. Weighted-average c. LIFO

The following hammers were available for sale during the year for Wilkins Tools: Wilkins has 30 hammers on hand at the end of the year. What is the dollar amount of cost of goods sold for the year according to the first-in, first-out method?

Use the following inventory related information for Questions below -Calculate the company's Cost of Goods Sold using Periodic Weighted-Average for the month of January.

When a company uses LIFO and prices are declining, profits will be higher than if the company had used FIFO.

The following data represent the beginning inventory and, in the order of occurrence, the purchases and sales of McKensie Company for an operating period. -Assuming McKensie Company uses LIFO periodic inventory procedures, the ending inventory cost is:

The average unit cost used in the weighted-average inventory pricing method is calculated by dividing the total units available for sale into the period's net cost of purchases.

A company reports the following in its inventory records for June: During June, the company sold 12 units. Using the weighted-average cost method, compute the cost of goods sold for June and the June 30 ending inventory balance for this product.

Mendez Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $15 each. During the month, the company made two purchases: 500 units at $14.50 each and 2,000 units at $14.00 each. Mendez Company also sold 2,150 units during the month. Using the periodic FIFO method, what is the cost of ending inventory?

If a firm's inventory turnover increases, its days' sales in inventory will:

Data on the physical inventory for a company as of December 31, are given below: Assuming the company applies the lower-of-cost-or net realizable value rule on the inventory by major category of items, the inventory balance reported on the Balance Sheet as of December 31 will be:

Smith Company purchases $60,000 of inventory during the period and sells $18,000 of it for $30,000. Beginning of the period inventory was $3,000. What is the company's inventory balance to be reported on its balance sheet at year end?

A low inventory turnover indicates that a firm is able to sell its inventory more quickly.

Selected balance sheet and income statement information for Software Corporation and Entertainment Corporation for 2019 follows (in thousands): Required: a. Compute the inventory turnover rate for Software Co. and Entertainment Co. for 2019. b. Comment on the differences you observe between the turnover rates for these two companies.

The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Fiskie, Inc., for an operating period. -Assuming Fiskie, Inc., uses weighted-average (periodic) inventory procedures, the ending inventory cost is: