$\begin{array}{l} \begin{array}{lll} \text { Sep. } & 1& \text { Inventory } \\ &4 & \text { Sold } \\ & 10 & \text { Purchased } \\ & 17 & \text { Sold } \\ & 30 & \text { Purchased } \\ \end{array} \begin{array}{lll} \quad\quad\quad\quad\quad\quad\\ \end{array} \begin{array}{lll} 20& \text { units at \$20 } \\ 10& \text { units } \\ 30& \text { units at \$25 } \\ 20& \text { units } \\ 10& \text { units at \$30 } \\ \end{array} \end{array}$ -If Addison uses FIFO,the cost of the ending merchandise inventory on September 30 is

A) $800 B) $650 C) $750 D) $700 A) $800 B) $650 C) $750 D) $700

The inventory data for an item for November are: $\begin{array}{l} \begin{array}{lll} \text { Nov } & 1& \text { Inventory } \\ &4 & \text { Sold } \\ & 10 & \text { Purchased } \\ & 17 & \text { Sold } \\ & 30 & \text { Purchased } \\ \end{array} \begin{array}{lll} \quad\quad\quad\quad\quad\quad\\ \end{array} \begin{array}{lll} 20& \text { units at \$19 } \\ 10& \text { units } \\ 30& \text { units at \$20 } \\ 20& \text { units } \\ 10& \text { units at \$21 } \\ \end{array} \end{array}$ Using a perpetual system,what is the cost of the merchandise sold for November if the company uses FIFO?

A) $610 B) $600 C) $590 D) $580 A) $610 B) $600 C) $590 D) $580

$\begin{array}{l} \begin{array}{lll} \text { Sep. } & 1& \text { Inventory } \\ &4 & \text { Sold } \\ & 10 & \text { Purchased } \\ & 17 & \text { Sold } \\ & 30 & \text { Purchased } \\ \end{array} \begin{array}{lll} \quad\quad\quad\quad\quad\quad\\ \end{array} \begin{array}{lll} 20& \text { units at \$20 } \\ 10& \text { units } \\ 30& \text { units at \$25 } \\ 20& \text { units } \\ 10& \text { units at \$30 } \\ \end{array} \end{array}$ -If Addison uses LIFO,the cost of the ending merchandise inventory on September 30 is

A) $800 B) $650 C) $750 D) $700 A) $800 B) $650 C) $750 D) $700

Use the information below to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. $\begin{array}{|c|l|c|c|} \hline \text { Date } & {\text { Blankets }} & \text { Units } & \text { Cost } \\ \hline \text { May } 3 & \text { Purchase } & 5 & \$ 20 \\ \hline 10 & \text { Sale } & 3 & \\ \hline 17 & \text { Purchase } & 10 & \$ 24 \\ \hline 20 & \text { Sale } & 6 & \\ \hline 23 & \text { Sale } & 3 & \\ \hline 30 & \text { Purchase } & 10 & \$ 30 \\ \hline \end{array}$ -Assuming that the company uses the perpetual inventory system,determine the Gross Profit for the month of May using the LIFO cost method.

A) $348 B) $452 C) $444 D) $356 A) $348 B) $452 C) $444 D) $356

The inventory data for an item for November are: $\begin{array}{l} \begin{array}{lll} \text { Nov } & 1& \text { Inventory } \\ &4 & \text { Sold } \\ & 10 & \text { Purchased } \\ & 17 & \text { Sold } \\ & 30 & \text { Purchased } \\ \end{array} \begin{array}{lll} \quad\quad\quad\quad\quad\quad\\ \end{array} \begin{array}{lll} 20& \text { units at \$19 } \\ 10& \text { units } \\ 30& \text { units at \$20 } \\ 20& \text { units } \\ 10& \text { units at \$21 } \\ \end{array} \end{array}$ Using a perpetual system,what is the cost of the merchandise sold for November if the company uses LIFO?

A) $610 B) $600 C) $590 D) $580 A) $610 B) $600 C) $590 D) $580

Exam 6: Inventories

Sep. 1 Inventory 4 Sold 10 Purchased 17 Sold 30 Purchased 20 units at \2 0 10 units 30 units at \2 5 20 units 10 units at \3 0 -If Addison uses FIFO,the cost of the ending merchandise inventory on September 30 is

(Multiple Choice)

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Question 21

Cost flow is in the reverse order in which costs were incurred when using

(Multiple Choice)

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Question 22

One of the two internal control procedures over inventory is to properly report inventory on the financial statements.

(True/False)

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Question 23

Inventory controls start when the merchandise is shelved in the store area.

(True/False)

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Question 24

During periods of decreasing costs,the use of the LIFO method of costing inventory will result in a lower amount of net income than would result from the use of the FIFO method.

(True/False)

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Question 25

On the basis of the following data,what is the estimated cost of the merchandise inventory on May 31 using the retail method?

(Multiple Choice)

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Question 26

The units of an item available for sale during the year were as follows: There are 30 units of the item in the physical inventory at December 31.The periodic inventory system is used.Determine the ending inventory cost using FIFO.

(Short Answer)

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Question 27

In valuing merchandise for inventory purposes,net realizable value is the estimated selling price less any direct costs of disposal.

(True/False)

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Question 28

The inventory data for an item for November are: Nov 1 Inventory 4 Sold 10 Purchased 17 Sold 30 Purchased 20 units at \1 9 10 units 30 units at \2 0 20 units 10 units at \2 1 Using a perpetual system,what is the cost of the merchandise sold for November if the company uses FIFO?

(Multiple Choice)

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Question 29

Inventory turnover measures the length of time it takes to acquire,sell,and replace the inventory.

(True/False)

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Question 30

Based on the following information,compute a inventory turnover; b average daily cost of merchandise sold using a 365 day year; and c number of days' sales in inventory.

(Essay)

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Question 31

For the year ended December 31,Depot Max's cost of merchandise sold was $56,900.Inventory at the beginning of the year was $6,540.Ending inventory was $7,250.Compute Depot Max's inventory turnover for the year.

(Multiple Choice)

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Question 32

A purchase order establishes an initial record of the receipt of the inventory.

(True/False)

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Question 33

Sep. 1 Inventory 4 Sold 10 Purchased 17 Sold 30 Purchased 20 units at \2 0 10 units 30 units at \2 5 20 units 10 units at \3 0 -If Addison uses LIFO,the cost of the ending merchandise inventory on September 30 is

(Multiple Choice)

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Question 34

If ending inventory for the year is overstated,stockholders' equity reported on the balance sheet at the end of the year is understated.

(True/False)

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Question 35

During a period of consistently rising prices,the method of inventory that will result in reporting the greatest cost of merchandise sold is

(Multiple Choice)

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Question 36

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

(Essay)

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Question 37

Use the information below to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 3 Purchase 5 \ 20 10 Sale 3 17 Purchase 10 \ 24 20 Sale 6 23 Sale 3 30 Purchase 10 \ 30 -Assuming that the company uses the perpetual inventory system,determine the Gross Profit for the month of May using the LIFO cost method.

(Multiple Choice)

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Question 38

The inventory data for an item for November are: Nov 1 Inventory 4 Sold 10 Purchased 17 Sold 30 Purchased 20 units at \1 9 10 units 30 units at \2 0 20 units 10 units at \2 1 Using a perpetual system,what is the cost of the merchandise sold for November if the company uses LIFO?

(Multiple Choice)

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Question 39

The following lots of a particular commodity were available for sale during the year: -What is the amount of cost of merchandise sold for the year according to the FIFO method?

(Multiple Choice)

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Question 40

Sep. 1 Inventory 4 Sold 10 Purchased 17 Sold 30 Purchased 20 units at \2 0 10 units 30 units at \2 5 20 units 10 units at \3 0 -If Addison uses FIFO,the cost of the ending merchandise inventory on September 30 is

Cost flow is in the reverse order in which costs were incurred when using

One of the two internal control procedures over inventory is to properly report inventory on the financial statements.

Inventory controls start when the merchandise is shelved in the store area.

During periods of decreasing costs,the use of the LIFO method of costing inventory will result in a lower amount of net income than would result from the use of the FIFO method.

On the basis of the following data,what is the estimated cost of the merchandise inventory on May 31 using the retail method?

The units of an item available for sale during the year were as follows: There are 30 units of the item in the physical inventory at December 31.The periodic inventory system is used.Determine the ending inventory cost using FIFO.

In valuing merchandise for inventory purposes,net realizable value is the estimated selling price less any direct costs of disposal.

The inventory data for an item for November are: Nov 1 Inventory 4 Sold 10 Purchased 17 Sold 30 Purchased 20 units at \1 9 10 units 30 units at \2 0 20 units 10 units at \2 1 Using a perpetual system,what is the cost of the merchandise sold for November if the company uses FIFO?

Inventory turnover measures the length of time it takes to acquire,sell,and replace the inventory.

Based on the following information,compute a inventory turnover; b average daily cost of merchandise sold using a 365 day year; and c number of days' sales in inventory.

For the year ended December 31,Depot Max's cost of merchandise sold was $56,900.Inventory at the beginning of the year was $6,540.Ending inventory was $7,250.Compute Depot Max's inventory turnover for the year.

A purchase order establishes an initial record of the receipt of the inventory.

Sep. 1 Inventory 4 Sold 10 Purchased 17 Sold 30 Purchased 20 units at \2 0 10 units 30 units at \2 5 20 units 10 units at \3 0 -If Addison uses LIFO,the cost of the ending merchandise inventory on September 30 is

If ending inventory for the year is overstated,stockholders' equity reported on the balance sheet at the end of the year is understated.

During a period of consistently rising prices,the method of inventory that will result in reporting the greatest cost of merchandise sold is

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

The inventory data for an item for November are: Nov 1 Inventory 4 Sold 10 Purchased 17 Sold 30 Purchased 20 units at \1 9 10 units 30 units at \2 0 20 units 10 units at \2 1 Using a perpetual system,what is the cost of the merchandise sold for November if the company uses LIFO?

The following lots of a particular commodity were available for sale during the year: -What is the amount of cost of merchandise sold for the year according to the FIFO method?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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