Exam 6: Inventories

Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning inventory 24 units @ \ 15 5 Sale 17 units 17 Purchase 10 units @ \ 20 30 Sale 8 units ​ Assuming a perpetual inventory system and the first-in, first-out method, determine (a) the cost of the goods sold for the September 30 sale and (b) the inventory on September 30.

"Market" as used in the phrase "lower of cost or market" for valuing inventory, refers to the price at which the inventory is being offered for sale by the company.

Control of inventory should begin as soon as the inventory is received. Which of the following internal control steps is not done to meet this goal?

​All of the following are documents used for inventory control except

The following data were taken from Castle, Inc. What is (1) the inventory turnover ratio and (2) the number of days' sales in inventory for Castle Inc.

Basic inventory data for April 30 are presented below for a business that employs the lower-of-cost-or-market basis of inventory valuation to each category. ​

Addison, Inc. uses a perpetual inventory system. Below is information about one inventory item for the month of September. -Use the information in the table to answer this question. If Addison uses LIFO, the September 17 cost of goods sold would be:

What is the ending inventory balance at the end of the year using the LIFO method?

Damaged merchandise that can be sold only at prices below cost should be valued at

Direct disposal costs do not include special advertising or sales commissions.