Arizona Inc. uses the perpetual inventory system, and recorded the following data pertaining to raw material X during January 2020: \[\begin{array}{l} \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Units }\\ \begin{array} { l l c c c c } \text { Date } & & \text { Received } & \text { Cost } & \text { lssued } & \text { On Hand } \\ \text { Jan 1 } & \text { Inventory } & & \$ 4.00 & & 3,200 \\ \text { Jan 11 } & \text { lssue (sold) } & & & 1,600 & 1,600 \\ \text { Jan 22 } & \text { Purchase } & 4,000 & \$ 4.70 & & 5,600 \end{array} \end{array}\] The moving-average unit cost of raw material X inventory at January 31, 2020 is

A) $4.70. B) $4.50. C) $4.43. D) $4.35. A) $4.70. B) $4.50. C) $4.43. D) $4.35.

Use the following information for the following questions: Giselle Ltd. is a calendar-year corporation. Its financial statements for the years 2020 and 2019 contained errors as follows: \[\begin{array} { l l l } &2020&2019\\ \text { Ending inventory } & \$ 2,000 \text { overstated } & \$ 3,000 \text { overtated } \\ \text { Depreciation expense } & \$ 6,000 \text { understated } & \$ 12,000 \text { overstated } \end{array}\] -Assume that no correcting entries were made at December 31, 2019, or December 31, 2020 and that no additional errors occurred in 2021. Ignoring income taxes, by how much will working capital, at December 31, 2021 be overstated or understated?

A) $0 B) $4,000 overstated C) $4,000 understated D) $6,000 understated A) $0 B) $4,000 overstated C) $4,000 understated D) $6,000 understated

data related to an item of inventory: \[\begin{array} { l l } \text { Inventory, March } 1 & 100 \text { units } @ \$ 8.10 \\ \text { Purchase, March } 7 & 350 \text { units } @\$ 8.50 \\ \text { Purchase, March } 16 & 70 \text { units } @\$ 9.10 \\ \text { Inventory, March } 31 & 150 \text { units } \end{array}\] If Ritz Ltd. uses FIFO, the value assigned to cost of goods sold is

A) $3,105. B) $3,187. C) $2,295. D) $1,369. A) $3,105. B) $3,187. C) $2,295. D) $1,369.

The following inventory transactions took place for NPR Corporation for the month of May: $\begin{array}{|l|l|c|c|} \hline \text { Date } & \text { Event } & \text { Quantity } & \text { Cost/Selling Price } \\ \hline \text { May 1 } & \text { Beginning Inventory } & 1,000 & \$ 3.55 \\ \hline \text { May 5 } & \text { Purchase } & 6,000 & 3.10 \\ \hline \text { May 10 } & \text { Purchase } & 2,000 & 3.75 \\ \hline \text { May 15 } & \text { Sale } & 3,000 & 6.00 \\ \hline \text { May 20 } & \text { Sale } & 2,000 & 6.00 \\ \hline \text { May 22 } & \text { Purchase } & 5,000 & 3.45 \\ \hline \text { May 24 } & \text { Purchase } & 2,000 & 3.75 \\ \hline \text { May 25 } & \text { Sale } & 7,000 & 6.00 \\ \hline \end{array}$ The ending inventory balance for NPR Corporation, assuming the company uses a perpetual inventory system, and a first-in, first-out (FIFO) cost formula is

A) $15,000. B) $14,400. C) $12,850. D) $13,800. A) $15,000. B) $14,400. C) $12,850. D) $13,800.

Use the following information to solve the following questions: Shanti Inc. is a calendar-year corporation. Its financial statements for the years 2020 and 2019 contained errors as follows: \[\begin{array} { l l l } &2020&2019\\ \text { Ending inventory } & \$ 6,000 \text { overstated } & \$ 16,000 \text { overstated } \\ \text { Depreciation experse } & \$ 4,000 \text { understated } & \$ 12,000 \text { overstated } \end{array}\] -Assume that the proper correcting entries were made at December 31, 2019. By how much will 2020 income before taxes be overstated or understated?

A) $2,000 understated B) $2,000 overstated C) $4,000 overstated D) $10,000 overstated A) $2,000 understated B) $2,000 overstated C) $4,000 overstated D) $10,000 overstated

Exam 8: Inventory

Arizona Inc. uses the perpetual inventory system, and recorded the following data pertaining to raw material X during January 2020: Units Date Received Cost lssued On Hand Jan 1 Inventory \ 4.00 3,200 Jan 11 lssue (sold) 1,600 1,600 Jan 22 Purchase 4,000 \ 4.70 5,600 The moving-average unit cost of raw material X inventory at January 31, 2020 is

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Question 141

Which of the following items should be included in inventory at the statement of financial position date?

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Question 142

Definitions Provide clear, concise answers for the following: -What is a perpetual inventory system?

(Short Answer)

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Question 143

Definitions Provide clear, concise answers for the following: -What is a periodic inventory system?

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Question 144

Use the following information to solve the following questions: During 2020 Ebert Corp. transferred inventory to Siskel Corp. and agreed to repurchase the merchandise early in 2021. Siskel then used the inventory as collateral to borrow from Southern Bank, remitting the proceeds to Ebert. In 2021 when Ebert repurchased the inventory, Siskel used the proceeds to repay its bank loan. -This transaction is known as a(n)

(Multiple Choice)

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Question 145

Use the following information for the following questions: Giselle Ltd. is a calendar-year corporation. Its financial statements for the years 2020 and 2019 contained errors as follows: 2020 2019 Ending inventory \ 2,000 overstated \ 3,000 overtated Depreciation expense \ 6,000 understated \ 12,000 overstated -Assume that no correcting entries were made at December 31, 2019, or December 31, 2020 and that no additional errors occurred in 2021. Ignoring income taxes, by how much will working capital, at December 31, 2021 be overstated or understated?

(Multiple Choice)

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Question 146

Which of the following criteria does NOT have to be met in order to be able to value inventory above cost?

(Multiple Choice)

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Question 147

Which of the following inventories may NOT be valued at fair value less costs to sell?

(Multiple Choice)

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Question 148

Definitions Provide clear, concise answers for the following: -Identify the inventory categories of a manufacturing company and describe how they are related.

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Question 149

A "basket purchase" is a purchase of

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Question 150

data related to an item of inventory: Inventory, March 1 100 units @\ 8.10 Purchase, March 7 350 units @\ 8.50 Purchase, March 16 70 units @\ 9.10 Inventory, March 31 150 units If Ritz Ltd. uses FIFO, the value assigned to cost of goods sold is

(Multiple Choice)

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Question 151

If a material amount of inventory has been ordered through a formal purchase contract at the statement of financial position date, for future delivery, at firm prices,

(Multiple Choice)

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Question 152

In a periodic inventory system, if ending inventory is understated,

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Question 153

Inventory analysis and ratios Avery Ltd. began the fiscal year with inventory of $2,142,560. The company's ending inventory was $2,241,650, and cost of goods sold for the year was $14,320,400. Net sales for the year were $81,877,520. Instructions Calculate Avery's inventory turnover and average days to sell inventory. (Use 365 days, round to two decimal places).

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Question 154

The gross profit method is normally used

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Question 155

The following inventory transactions took place for NPR Corporation for the month of May: Date Event Quantity Cost/Selling Price May 1 Beginning Inventory 1,000 \ 3.55 May 5 Purchase 6,000 3.10 May 10 Purchase 2,000 3.75 May 15 Sale 3,000 6.00 May 20 Sale 2,000 6.00 May 22 Purchase 5,000 3.45 May 24 Purchase 2,000 3.75 May 25 Sale 7,000 6.00 The ending inventory balance for NPR Corporation, assuming the company uses a perpetual inventory system, and a first-in, first-out (FIFO) cost formula is

(Multiple Choice)

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Question 156

Impact of accounting errors on financial statement items and ratios Cayman Corporation makes the following errors during the current year. Each error is an independent case. Ending inventory is overstated by $1,120, but purchases are recorded correctly. Both ending inventory and a purchase on account are understated in the same amount. Ending inventory is correct, but a purchase on account was not recorded. (Assume the purchase of $880 was recorded in the following year). Instructions Indicate the effect of each error on working capital, the current ratio (assume the current ratio is greater than 1), retained earnings, and net income for the current year and the following year.

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Question 157

In its first year of operations as a retailer, Riley Ltd. reported a gross profit of $181,500, total purchases of $225,000, and an ending inventory of $90,000. Therefore, Riley's sales in its first year must have been

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Question 158

Use the following information to solve the following questions: Shanti Inc. is a calendar-year corporation. Its financial statements for the years 2020 and 2019 contained errors as follows: 2020 2019 Ending inventory \ 6,000 overstated \ 16,000 overstated Depreciation experse \ 4,000 understated \ 12,000 overstated -Assume that the proper correcting entries were made at December 31, 2019. By how much will 2020 income before taxes be overstated or understated?

(Multiple Choice)

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Question 159

Which of the following is correct?

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Question 160

Which of the following items should be included in inventory at the statement of financial position date?

Definitions Provide clear, concise answers for the following: -What is a perpetual inventory system?

Definitions Provide clear, concise answers for the following: -What is a periodic inventory system?

Which of the following criteria does NOT have to be met in order to be able to value inventory above cost?

Which of the following inventories may NOT be valued at fair value less costs to sell?

Definitions Provide clear, concise answers for the following: -Identify the inventory categories of a manufacturing company and describe how they are related.

A "basket purchase" is a purchase of

data related to an item of inventory: Inventory, March 1 100 units @\ 8.10 Purchase, March 7 350 units @\ 8.50 Purchase, March 16 70 units @\ 9.10 Inventory, March 31 150 units If Ritz Ltd. uses FIFO, the value assigned to cost of goods sold is

If a material amount of inventory has been ordered through a formal purchase contract at the statement of financial position date, for future delivery, at firm prices,

In a periodic inventory system, if ending inventory is understated,

The gross profit method is normally used

In its first year of operations as a retailer, Riley Ltd. reported a gross profit of $181,500, total purchases of $225,000, and an ending inventory of $90,000. Therefore, Riley's sales in its first year must have been

Which of the following is correct?

The Canadian Financial Reporting Environment

Conceptual Framework Underlying Financial Reporting

Measurement

Reporting Financial Performance

Financial Position and Cash Flows

Revenue Recognition

Cash and Receivables

Investments

Property, Plant, and Equipment: Accounting Model Basics

Depreciation, Impairment, and Disposition

Intangible Assets and Goodwill

Accounting Information Systems and Adjusting Entries: A Comprehensive Guide

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