Exam 8: Inventory

When inventory declines in value below original (historical) cost, and this decline is considered other than temporary, what is the maximum amount that the inventory can be valued at?

Which of the following is NOT a required inventory disclosure under ASPE?

Use the following information for the following questions: Windsor Ltd. uses FIFO to cost its inventory. The following information is available for Windsor's inventory of product # 205: Beginning inventory: $\quad 240$ units $@ \$ 5.28$ per unit March 1: $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Purchase of 500 units $@ \$ 5.00$ per unit April 10: $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Sale of 200 units $@ \$ 10.20$ per unit -Assuming Windsor uses the periodic inventory system, the entry to account for the March 1 purchase is

Enviro Corporation had the following items as inventory as at December 31, 2020: Item No. Quantity Unit Cost NRV A1 130 \ 8.00 \ 8.40 B4 190 5.00 4.90 C2 190 12.00 12.90 D3 160 11.00 10.90 Assume that Enviro uses a perpetual inventory system and that none of the inventory items can be grouped together for accounting purposes. The year-end adjusting entry should include a charge to cost of goods sold of

Adjustments to lower of cost and NRV The controller of Utah Corp. has provided you with the following information relating to its inventory: Date Cost Lower of cost and NFN Dec 31/17 \ 457,000 \ 410,000 Dec 31/18 \ 615,000 \ 555,000 Utah uses the periodic inventory system, and records its inventory at cost. An allowance account is adjusted at the end of each year to adjust the value of the inventory to the lower of cost and NRV. Instructions Prepare the journal entries that Utah would have prepared for its 2019 and 2020 year ends, assuming that 2019 was its first year of operations.

The following information was derived from the 2020 accounting records of Jersey Co.: Beginning inventory Purchases Freight-in Transportation to consignees Freight-out Ending inventory Jersey's Central Warehouse \ 260,000 475,000 15,000 25,000 290,000 Jersey's Goods held by consignee \ 28,000 90,000 5,000 8,000 20,000 Jersey's 2020 cost of sales was

For calendar 2020, Gomez Corporation reported pre-tax income of $70,000. A recount of the company's inventory revealed that 2020 ending inventory was overstated by $10,000. What is Gomez's corrected pre-tax income for 2020?

In no case can "net realizable value" (in the lower of cost and net realizable value rule) be more than

Definitions Provide clear, concise answers for the following: -What is the average cost inventory cost flow method?

Definitions Provide clear, concise answers for the following: -What is the specific identification cost flow method?

Which of the following does NOT correctly describe the FIFO cost formula?

Companies that carry inventories must carefully monitor inventory in order to

For calendar 2020, the gross profit of Seymour Corp. was $135,000; the cost of goods manufactured was $360,000; the beginning inventories of goods in process and finished goods were $33,500 and $57,000, respectively; and the ending inventories of goods in process and finished goods were $44,000 and $71,000, respectively. Allan Corp.'s sales for 2020 must have been

Definitions Provide clear, concise answers for the following: -What is the FIFO cost flow method?

Use the following information for the following question: Tang Inc. uses the retail inventory method. The following information is available for the current year: Cost Retail Beginning inventory \ 117,000 \ 183,000 Purchases 442,000 623,000 Freight-in 8,000 - Employee discounts - 3,000 Net markups - 22,000 Net markdowns - 30,000 Sales - 585,000 -If the ending inventory is to be estimated using the retail method, the calculation of the cost-to-retail ratio should be based on cost and retail of

Fred received merchandise on consignment from Dino. As at January 31, Fred included the goods in inventory, but did NOT record the transaction. The effect of this on Fred's financial statements for January 31 would be

Inventories from an accounting perspective Which of the following would be included in inventory? a) Cost of jars, to a juice bar b) Cost of apples held on the shelves of a grocery store c) Cost of an airplane being manufactured d) Cost of a courtesy vehicle owned by a car dealership e) Cost of wine for a bar/restaurant

Gross profit method On January 1, Jasper Store had inventory valued at $124,000. January purchases were $78,000 and January sales were $220,000. On February 1, a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of $10,000 remained undamaged after the fire. Instructions Calculate the amount of the fire loss. Show appropriate titles for all amounts in your presentation.

Which of the following does NOT correctly describe a perpetual inventory system?

Which of the following does NOT correctly describe the implications of an executory contract on the accounting entries and/or disclosures to be made by the purchaser and/or seller?