Question 1

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

Accepted Answer

A)  $1,930 
B)  $1,945 
C)  $1,966 
D)  $2,080 
A)  $1,930 
B)  $1,945 
C)  $1,966 
D)  $2,080

Question 2

Hanifee Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 200 units that cost $65 each. During the month, the company made two purchases: 300 units at $69 each and 150 units at $70 each. The company also sold 500 units during the month.
Using the periodic weighted-average cost method, what is the cost of ending inventory?

Accepted Answer

A)  $33,770 
B)  $10,200 
C)  $10,500 
D)  $33,400 
A)  $33,770 
B)  $10,200 
C)  $10,500 
D)  $33,400

Question 3

At the beginning of July, Pulman Luggage holds 15 units of its only product with a per-unit cost of $140. During July, Pulman sells 40 units. A summary of purchases during the current period follows:
  
 Assume that Pulman utilizes the LIFO method and instead of making the third purchase during July, the company allows its inventory level to decline by delaying the third purchase until August.
Required:
a. Compute cost of goods sold for July if the third purchase is made during July.
b. Compute cost of goods sold for July if the third purchase is delayed to August.
c. Discuss the effect on July profit if the company delays the third purchase until August.

Accepted Answer

a. Goods available for sale = (15 × $140

Question 4

Flint Company and White Company reported the following information in their financial statements, prior to their merger:
  
To the closest hundredth, how much is the 2019 inventory turnover for Flint Company?

Accepted Answer

A)  2.89 
B)  2.41 
C)  1.28 
D)  3.08 
A)  2.89 
B)  2.41 
C)  1.28 
D)  3.08

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

Flint Company and White Company reported the following information in their financial statements, prior to their merger: To the closest hundredth, how much is the 2019 inventory turnover for Flint Company?

Financial Accounting and Business Decisions

Processing Accounting Information

Accrual Basis of Accounting

Understanding Accounting Information

Internal Control and Cash

Receivables

Property, Plant and Equipment and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Appendix A: The Language of Accountants: Debits and Credits

Appendix B: Accounting for Investments and Consolidated Financial Statements

Appendix C: Accounting and the Time Value of Money

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Exam 7: Inventory