Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO. \[\begin{array} { | r | l | l | l | } \hline \text { Date } & \text { Activities } & \text { Units Acquired at Cast } & \text { Units Sold at Ret ail } \\ \hline \text { May 1 } & \text { Beginning Inventory } & 150 \text { units @ \$10.00 } & \\ \hline 5 & \text { Purchase } & 220 \text { units @ @ } \$ 12.00 & \\ \hline 10 & \text { Sales } & & 140 \text { units @ \$20.00 } \\ \hline 15 & \text { Pur chase } & 100 \text { units @ \$13.00 } & \\ \hline 24 & \text { Sales } & & 90 \text { units @ \$21.00 } \\ \hline \end{array}\]

A) $2,980 B) $2,590 C) $2,850 D) $2,860 E) $2,460 A) $2,980 B) $2,590 C) $2,850 D) $2,860 E) $2,460

A company made the following merchandise purchases and sales during the month of May: \[\begin{array} { | l | l | l | l | } \hline \text { May l } & \text { Pur chased } & 380 \text { units at } & \$ 15 \text { each } \\ \hline \text { May 5 } & \text { Pur chased } & 270 \text { units at } & \$ 17 \text { each } \\ \hline \text { May 10 } & \text { Sold } & 400 \text { units at } & \$ 50 \text { each } \\ \hline \text { May 20 } & \text { Pur chased } & 300 \text { units at } & \$ 22 \text { each } \\ \hline \text { May 25 } & \text { Sold } & 400 \text { units at } & \$ 50 \text { each } \\ \hline \end{array}\] There was no beginning inventory. If the company uses the weighted average periodic method, what would be the cost of the ending inventory?

\[\begin{array} { | l | l | } \hline 38

Exam 6: Inventories and Cost of Sales

Beckenworth had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory of $1,965 million. Its days' sales in inventory equals: (Use 365 days a year.)

(Multiple Choice)

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Question 81

Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO. Date Activities Units Acquired at Cast Units Sold at Ret ail May 1 Beginning Inventory 150 units @ \1 0.00 5 Purchase 220 units @ @ \ 12.00 10 Sales 140 units @ \2 0.00 15 Pur chase 100 units @ \1 3.00 24 Sales 90 units @ \2 1.00

(Multiple Choice)

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Question 82

In applying the lower of cost or market method to inventory valuation, market is defined as the current replacement cost.

(True/False)

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Question 83

Jefferson Company has sales of $300,000 and cost of goods available for sale of $270,000. If the gross profit ratio is typically 30%, the estimated cost of the ending inventory under the gross profit method would be:

(Multiple Choice)

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Question 84

A company has beginning inventory of 15 units at a cost of $12 each on October 1. On October 5, it purchases 10 units at $13 per unit. On October 12 it purchases 20 units at $14 per unit. On October 15, it sells 30 units. Using the FIFO periodic inventory method, what is the value of the inventory at October 15 after the sale?

(Multiple Choice)

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Question 85

One application of internal control when taking a physical count of inventory is the use of pre-numbered inventory tickets.

(True/False)

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Question 86

The ________ method of assigning costs to inventory and cost of goods sold exactly matches the costs of particular items with the revenues they generate and would be used when items can be easily traced to the purchase invoice cost.

(Short Answer)

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Question 87

A company reports the following information regarding its inventory. Beginning inventory: cost is $80,000; retail is $130,000 Net purchases: cost is $65,000; retail is $120,000 Sales at retail: $145,000 The year-end inventory shows $135,000 worth of merchandise available at retail prices. What is the cost of the ending inventory calculated using the retail inventory method?

(Multiple Choice)

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Question 88

A company made the following merchandise purchases and sales during the month of May: May l Pur chased 380 units at \ 15 each May 5 Pur chased 270 units at \ 17 each May 10 Sold 400 units at \ 50 each May 20 Pur chased 300 units at \ 22 each May 25 Sold 400 units at \ 50 each There was no beginning inventory. If the company uses the weighted average periodic method, what would be the cost of the ending inventory?

(Essay)

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Question 89

An understatement of ending inventory will cause

(Multiple Choice)

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Question 90

Goods that are in transit and were shipped FOB shipping point should be included in the inventory records of the ________.

(Short Answer)

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Question 91

The ________ ratio reflects how much inventory is available in terms of days' sales.

(Short Answer)

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Question 92

Use the information below to determine the sales revenue, cost of goods sold and gross profit that would be reported for the company related to the March 16 sale assuming the company uses LIFO inventory valuation and a perpetual inventory system. January 1: Purchased 100 units at \1 0 per unit. February 5: Purchased 60 units at \1 2 per unit. March 16: Sold 40 units for \1 6 per unit.

(Essay)

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Question 93

LIFO assumes that inventory costs flow in the order incurred.

(True/False)

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Question 94

In a period of rising purchase costs, LIFO usually gives a lower taxable income and therefore, yields a tax advantage.

(True/False)

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Question 95

Companies can and often do use different costing methods for financial reporting and tax reporting. An exception to this is the:

(Multiple Choice)

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Question 96

The assignment of costs to cost of goods sold and inventory using weighted average usually yields different results depending on whether a perpetual or periodic system is used.

(True/False)

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Question 97

On April 24 of the current year, The Memphis Pecan Company experienced a tornado that destroyed the company's entire inventory. At the beginning of April, the company reported beginning inventory of $226,750. Inventory purchased during April (until the date of the tornado) was $197,800. Sales for the month of April through April 24 were $642,500. Assuming the company's typical gross profit ratio is 50%, estimate the amount of inventory destroyed in the tornado.

(Multiple Choice)

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Question 98

Goods that are in transit and were shipped FOB destination should be included in the inventory records of the ________.

(Short Answer)

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Question 99

Costs included in the Merchandise Inventory account can include all of the following except:

(Multiple Choice)

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Question 100

Showing 81 - 100 of 232

Exam 6: Inventories and Cost of Sales

Beckenworth had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory of $1,965 million. Its days' sales in inventory equals: (Use 365 days a year.)

In applying the lower of cost or market method to inventory valuation, market is defined as the current replacement cost.

Jefferson Company has sales of $300,000 and cost of goods available for sale of $270,000. If the gross profit ratio is typically 30%, the estimated cost of the ending inventory under the gross profit method would be:

One application of internal control when taking a physical count of inventory is the use of pre-numbered inventory tickets.

The ________ method of assigning costs to inventory and cost of goods sold exactly matches the costs of particular items with the revenues they generate and would be used when items can be easily traced to the purchase invoice cost.

An understatement of ending inventory will cause

Goods that are in transit and were shipped FOB shipping point should be included in the inventory records of the ________.

The ________ ratio reflects how much inventory is available in terms of days' sales.

LIFO assumes that inventory costs flow in the order incurred.

In a period of rising purchase costs, LIFO usually gives a lower taxable income and therefore, yields a tax advantage.

Companies can and often do use different costing methods for financial reporting and tax reporting. An exception to this is the:

The assignment of costs to cost of goods sold and inventory using weighted average usually yields different results depending on whether a perpetual or periodic system is used.

Goods that are in transit and were shipped FOB destination should be included in the inventory records of the ________.

Costs included in the Merchandise Inventory account can include all of the following except:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets Natural Resoures and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Present and Future Values in Accounting

Activity-Based Costing

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