Exam 7: Inventory and the Cost of Sales

Under certain methods of inventory cost flow assumption, the amount of cost of goods sold can be affected by when the sale occurs. Which of the following methods is NOT affected by when the sale occurs?

Warren Clothing Store sells jeans. During January, its inventory records of one brand of designer jeans were as follows: - Refer to Exhibit 7-5. Using the information above, periodic FIFO cost of goods sold is

If expenses are overstated on the income statement, net income

Cost of goods sold is equal to

Merchandise shipped FOB shipping point on the last day of the year should probably be included in

Chyna Corporation has the following income statement for the year ended December 31, 2012: Given this information, if ending inventory was $10,000 instead of $12,000, net income would be

Which of the following will result if the current year's ending inventory amount is understated in the cost of goods sold calculation?

When a company uses the perpetual inventory method, purchase returns are recorded by

The ceiling, or the maximum market amount at which inventory can be carried on the books, is equal to

Which of the following is an inventory account for a retailer?

The entry (or entries) required to record a sales return by a customer when using the perpetual inventory method would consist of

Following are the account balances from Connery Company's income statement: Given this information, the cost of goods sold during 2012 is

Which of the following would be true if inventory costs were increasing?

Palermo Company is a wholesaler of sporting goods. The activity for NBA-sanctioned basketballs during November is shown below: Given this information, compute the cost of ending inventory using the following inventory costing methods:

Andromeda, Inc., purchased $100,000 of inventory during the year and had average receivables and payables of $46,575 and $21,918, respectively. The number of days' purchases in accounts payable was approximately

An overstatement of ending inventory in period 1 would result in income of period 2 being

If the shipping terms indicate that the seller owns the goods until delivered to the buyer, this arrangement is known as

When the periodic inventory method is used, the entry to record a return of defective merchandise to a supplier would include a

Iliescu Sporting Goods had the following inventory records for one line of skis for the month of January: - Refer to Exhibit 7-7. Assuming the perpetual LIFO inventory method is used, what is Iliescu's cost of goods sold?

Lindsey Corporation had the following account balances: - Refer to Exhibit 7-2.Given the information above,and assuming that Lindsey's total operating expenses (exclusive of cost of goods sold)are $40,000,pretax income is