Exam 9: Inventory

Use the information below to answer the following questions: Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2012. The following purchases and sales were made during September: Opening Balance Purchases Sales September15 units@ \2 00 \ September35 units @ \2 40 September 77 units 123 units@ \2 60 275 units 256 units@ \2 00 -What was the value of ending inventory of Algo,using the LIFO assumption in a perpetual inventory system?

Which of the following statements about the perpetual inventory control method is NOT true?

Using the periodic count method,entries are made in the inventory account when stock is:

Which of the following is NOT an advantage of the perpetual over the periodic inventory method?

The entry to record a credit purchase when the perpetual method is employed is:

Which of the following is NOT an advantage of the perpetual inventory system over the periodic count system?

In a period of rising purchase prices,which cost flow assumption provides the highest net profit?

Inventory with a value of $300 000 was written down to $250 000 in June 2012 because of falling prices in the industry.This transaction will:

The entry to record a credit purchase when the periodic inventory method is employed will include a:

Which of the following statements about the use of the FIFO assumption is NOT true?

Use the information below to answer the following questions: A company purchases and sells Roofoo. It began last year with 5 units of Roofoo on hand at a cost of $10 each, and during the year its purchases and sales were as follows: Date Units purchased Units sold Units on hand Purchase price July 1 5 \ 10 Sept 10 5 10 \ 12 Dec 20 6 4 Mar 3 4 8 \ 15 June 10 5 3 -What was the value of the ending inventory of Roofoo,using the moving weighted average assumption and a perpetual inventory system?

On 14 April 2012,Dragoon Ltd sells on credit $8000 of merchandise that had cost $5000.Which of the following journal entries would Dragoon Ltd make on 14 April 2012?

A company discovered that inventory that cost $1000 and normally sells for $1200,has become obsolete and will be scrapped next month.The effect of the adjusting journal entry is to:

Use the information below to answer the following questions: A company purchases and sells Roofoo. It began last year with 5 units of Roofoo on hand at a cost of $10 each, and during the year its purchases and sales were as follows: Date Units purchased Units sold Units on hand Purchase price July 1 5 \ 10 Sept 10 5 10 \ 12 Dec 20 6 4 Mar 3 4 8 \ 15 June 10 5 3 -What was the value of the ending inventory of Roofoo,using the FIFO assumption?

Use the information below to answer the following questions: Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2012. The following purchases and sales were made during September: Opening Balance Purchases Sales September15 units@ \2 00 \ September35 units @ \2 40 September 77 units 123 units@ \2 60 275 units 256 units@ \2 00 -What was the value of cost of goods sold of Algo,using the moving weighted average assumption and a perpetual inventory system?

The perpetual accounting control method has which of the following advantages over the periodic count method?

It is necessary to use a purchases account with:

During year ended 30 June 2012,Rugger Ltd had net sales of $256 000.Inventory at 1 July 2011 was $25 000,and at 30 June 2012 it was $18 000.Purchases were $115 000.What was the gross profit for year ended 30 June 2012?

The lower of cost or market rule for inventory is an example of the principle of:

Use the information below to answer the following questions: At 1 July 2011, Epsilon Pty Ltd had 100 items of inventory which had cost $50 each. During the year ended 30 June 2012, it purchased 1500 items at a cost of $50 each. Of these, 200 were returned to the supplier as they were damaged. During the year, 1200 items were sold for $80 each, but 50 were returned by customers. Overhead expenses during the year amounted to $15,000. -What was the value of inventory in the balance sheet at 30 June 2012?