A company had the following purchases during its first year of operations: \[\begin{array} { | l | l | } \hline & \text { Purchases } \\ \hline \text { January. } & 10 \text { units at \$120 } \\ \hline \text { February. } & 20 \text { units at \$130 } \\ \hline \text { May. } & 15 \text { units at \$140 } \\ \hline \text { September: } & 12 \text { units at \$150 } \\ \hline \text { November: } & 10 \text { units at \$160 } \\ \hline \end{array}\] On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory?

A) $3,640. B) $3,280. C) $3,960. D) $3,800. E) $3,500. A) $3,640. B) $3,280. C) $3,960. D) $3,800. E) $3,500.

A company had the following purchases and sales during its first year of operations: \[\begin{array} { | l | l | l | } \hline & \text { Purchases } & \text { Sales } \\ \hline \text { January. } & 10 \text { units at \$120 } & 6 \text { units } \\ \hline \text { February. } & 20 \text { units at \$125 } & 5 \text { units } \\ \hline \text { May. } & 15 \text { units at \$130 } & 9 \text { units } \\ \hline \text { September: } & 12 \text { units at \$135 } & 8 \text { units } \\ \hline \text { November: } & 10 \text { units at \$140 } & 13 \text { units } \\ \hline \end{array}\] On December 31, there were 26 units remaining in ending inventory. -Using the Periodic LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)

A) $3,364. B) $3,405. C) $3,200. D) $5,400. E) $3,270. A) $3,364. B) $3,405. C) $3,200. D) $5,400. E) $3,270.

Exam 6: Inventories and Cost of Sales

On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the company had not completed its month end reporting for August, it must estimate the amount of inventory lost using the gross profit method. At the beginning of August, the company reported beginning inventory of $215,450. Inventory purchased during August was $192,530. Sales for the month of August were $542,500. Assuming the company's typical gross profit ratio is 40%, estimate the amount of inventory destroyed in the flood.

(Multiple Choice)

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Question 121

A company had the following purchases during its first year of operations: Purchases January. 10 units at \1 20 February. 20 units at \1 30 May. 15 units at \1 40 September: 12 units at \1 50 November: 10 units at \1 60 On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory?

(Multiple Choice)

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Question 122

An understatement of ending inventory will cause an understatement of assets and equity on the balance sheet.

(True/False)

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Question 123

Consignment goods are:

(Multiple Choice)

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Question 124

A company had the following purchases and sales during its first year of operations: Purchases Sales January. 10 units at \1 20 6 units February. 20 units at \1 25 5 units May. 15 units at \1 30 9 units September: 12 units at \1 35 8 units November: 10 units at \1 40 13 units On December 31, there were 26 units remaining in ending inventory. -Using the Periodic LIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)

(Multiple Choice)

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Question 125

Giorgio had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory of $1,965 million. Its inventory turnover equals:

(Multiple Choice)

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Question 126

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 FIFO 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 127

The ________ method of assigning costs to inventory and cost of goods sold assumes that the most recent purchases are sold first.

(Short Answer)

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Question 128

The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:

(Multiple Choice)

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Question 129

________ is the estimated sales price of damaged goods minus the cost of making the sale.

(Short Answer)

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Question 130

The Inventory account is a controlling account for the inventory subsidiary ledger that contains a separate record for each separate product.

(True/False)

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Question 131

Buffalo Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available: • ^The^ending^inventory^balance^of^$412,000^did^not^include^goods^costing^$48,000^that^werepurchased by Buffalo on December 28 and shipped FOB destination on that date. Buffalo did not receive the goods until January 2 of the following year. • ^The^ending^inventory^balance^of^$412,000^included^damaged^goods^at^their^original^cost^of $38,000. The net realizable value of the damaged goods was $10,000. Based on this information, the correct balance for ending inventory on December 31 is:

(Multiple Choice)

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Question 132

The FIFO inventory method assumes that costs for the latest units purchased are the first to be charged to the cost of goods sold.

(True/False)

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Question 133

When applying the lower of cost or market method of inventory valuation, market is defined as the ________.

(Short Answer)

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Question 134

Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. Its days' sales in inventory equals:

(Multiple Choice)

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Question 135

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $4,000 Net sales: $80,000 Net purchases: $78,000 The company's gross margin ratio is 25%. - Using the gross profit method, the estimated ending inventory value would be:

(Multiple Choice)

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Question 136

In the retail inventory method of inventory valuation, the retail amount of inventory refers to its dollar amount measured using selling prices of inventory items.

(True/False)

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Question 137

A company has beginning inventory of 10 units at a cost of $10 each on February 1. On February 3, it purchases 20 units at $12 each. 12 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 12 units that are sold?

(Multiple Choice)

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Question 138

Mary's Antiques does not have its own retail location, instead maintains inventory in its warehouse and sells merchandise through Oldtime Antique Mall. Oldtime does not assume responsibility for goods until they are sold to customers at which time it takes a commission for items sold and sends the sale proceeds to Mary's. Identify which company has the role of the consignor and the consignee. Which company should include any unsold goods as part of its inventory?

(Essay)

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Question 139

Regardless of what inventory method or system is used, cost of goods available for sale must be allocated between and .

(Short Answer)

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Question 140

Showing 121 - 140 of 232

An understatement of ending inventory will cause an understatement of assets and equity on the balance sheet.

Consignment goods are:

Giorgio had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory of $1,965 million. Its inventory turnover equals:

The ________ method of assigning costs to inventory and cost of goods sold assumes that the most recent purchases are sold first.

The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:

________ is the estimated sales price of damaged goods minus the cost of making the sale.

The Inventory account is a controlling account for the inventory subsidiary ledger that contains a separate record for each separate product.

The FIFO inventory method assumes that costs for the latest units purchased are the first to be charged to the cost of goods sold.

When applying the lower of cost or market method of inventory valuation, market is defined as the ________.

Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. Its days' sales in inventory equals:

In the retail inventory method of inventory valuation, the retail amount of inventory refers to its dollar amount measured using selling prices of inventory items.

A company has beginning inventory of 10 units at a cost of $10 each on February 1. On February 3, it purchases 20 units at $12 each. 12 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 12 units that are sold?

Regardless of what inventory method or system is used, cost of goods available for sale must be allocated between and .

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

Filters

Exam 6: Inventories and Cost of Sales

An understatement of ending inventory will cause an understatement of assets and equity on the balance sheet.

Consignment goods are:

Giorgio had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory of $1,965 million. Its inventory turnover equals:

The ________ method of assigning costs to inventory and cost of goods sold assumes that the most recent purchases are sold first.

The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:

________ is the estimated sales price of damaged goods minus the cost of making the sale.

The Inventory account is a controlling account for the inventory subsidiary ledger that contains a separate record for each separate product.

The FIFO inventory method assumes that costs for the latest units purchased are the first to be charged to the cost of goods sold.

When applying the lower of cost or market method of inventory valuation, market is defined as the ________.

Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. Its days' sales in inventory equals:

In the retail inventory method of inventory valuation, the retail amount of inventory refers to its dollar amount measured using selling prices of inventory items.

A company has beginning inventory of 10 units at a cost of $10 each on February 1. On February 3, it purchases 20 units at $12 each. 12 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 12 units that are sold?

Regardless of what inventory method or system is used, cost of goods available for sale must be allocated between ________ and ________.

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

Filters

Regardless of what inventory method or system is used, cost of goods available for sale must be allocated between and .