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

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

Assume that three identical units of merchandise were purchased during October, as follows: \[\begin{array} { | l | c | l | c | c | } \hline & & & \text { Units } & \text { Cost } \\ \hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \\ \hline & 12 & \text { Purchase } & 1 & 13 \\ \hline & 28 & \text { Purchase } & \underline { 1 } & \underline { 15 } \\ \hline \text { Total } & & & 3 & \$ 33 \\ \hline \end{array}\] -One unit is sold on October 31 for $28. Using the table provided, what is the cost of goods sold under the LIFO method?

A) $28 B) $18 C) $15 D) $13 A) $28 B) $18 C) $15 D) $13

Exam 6: Inventories

Beginning inventory, purchases, and sales for an inventory item are as follows: Beginning inventory 150 units @\ 755 Sale 120 units First purchase 400 units @\ 785 Sale 200 units Second purchase 300 units (\ 805 Sale 290 units The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year. What is the total cost of ending inventory according to FIFO?

(Short Answer)

4.9/5

(24)

Question 121

List three different security measures taken to safeguard inventory.

(Short Answer)

5.0/5

(45)

Question 122

Three identical units of merchandise were purchased during May, as follows: Assume that two units are sold on May 23 for $313 total. Determine the gross profit for May and ending inventory on May 31 using (a) FIFO, (b) LIFO, and (c) average cost methods.

(Essay)

4.9/5

(42)

Question 123

The inventory data for an item for November are: Nov. 1 Inventory 20 units at \ 19 4 Sold 10 units 10 Purchased 30 units at \ 20 17 Sold 20 units 30 Purchased 10 units at \ 21 Using a perpetual system, what is the cost of the goods sold for November if the company uses LIFO?

(Multiple Choice)

4.9/5

(32)

Question 124

Under the periodic inventory system, the inventory account continuously discloses the amount of inventory on hand.

(True/False)

4.9/5

(35)

Question 125

Which document establishes an initial record of the receipt of the inventory?

(Multiple Choice)

4.9/5

(34)

Question 126

A physical inventory should be taken at the end of every month.

(True/False)

5.0/5

(40)

Question 127

All of the following are reasons to use an estimated method of costing inventory except

(Multiple Choice)

4.8/5

(41)

Question 128

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

(True/False)

4.9/5

(36)

Question 129

Which document authorizes the purchase of the inventory from an approved vendor?

(Multiple Choice)

4.8/5

(32)

Question 130

Under a periodic inventory system

(Multiple Choice)

4.8/5

(25)

Question 131

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

(Multiple Choice)

4.8/5

(33)

Question 132

Safeguarding inventory from damage or theft is a primary objective for the control of inventory. If you were running a clothing store, name three specific controls you would implement to guard inventory from theft.

(Essay)

4.7/5

(42)

Question 133

What is the amount of cost of goods sold for the year according to the average cost method?

(Multiple Choice)

4.9/5

(31)

Question 134

Which of the following will be the same amount regardless of the cost flow assumption adopted?

(Multiple Choice)

4.9/5

(39)

Question 135

Assume that three identical units of merchandise were purchased during October, as follows: Units Cost October 5 Purchase 1 \ 5 12 Purchase 1 13 28 Purchase Total 3 \ 33 -One unit is sold on October 31 for $28. Using the table provided, what is the cost of goods sold under the LIFO method?

(Multiple Choice)

4.9/5

(37)

Question 136

FIFO is the inventory costing method that follows the physical flow of the goods.

(True/False)

4.9/5

(41)

Question 137

A company will most likely use an estimated method of determining inventory when

(Multiple Choice)

4.9/5

(36)

Question 138

Under the LIFO inventory costing method, the most recent costs are assigned to ending inventory.

(True/False)

4.7/5

(33)

Question 139

What is the ending inventory balance at the end of the year rounded to nearest dollar using the average cost method?

(Multiple Choice)

4.9/5

(44)

Question 140

List three different security measures taken to safeguard inventory.

Three identical units of merchandise were purchased during May, as follows: Assume that two units are sold on May 23 for $313 total. Determine the gross profit for May and ending inventory on May 31 using (a) FIFO, (b) LIFO, and (c) average cost methods.

The inventory data for an item for November are: Nov. 1 Inventory 20 units at \ 19 4 Sold 10 units 10 Purchased 30 units at \ 20 17 Sold 20 units 30 Purchased 10 units at \ 21 Using a perpetual system, what is the cost of the goods sold for November if the company uses LIFO?

Under the periodic inventory system, the inventory account continuously discloses the amount of inventory on hand.

Which document establishes an initial record of the receipt of the inventory?

A physical inventory should be taken at the end of every month.

All of the following are reasons to use an estimated method of costing inventory except

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

Which document authorizes the purchase of the inventory from an approved vendor?

Under a periodic inventory system

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

Safeguarding inventory from damage or theft is a primary objective for the control of inventory. If you were running a clothing store, name three specific controls you would implement to guard inventory from theft.

What is the amount of cost of goods sold for the year according to the average cost method?

Which of the following will be the same amount regardless of the cost flow assumption adopted?

Assume that three identical units of merchandise were purchased during October, as follows: Units Cost October 5 Purchase 1 \ 5 12 Purchase 1 13 28 Purchase Total 3 \ 33 -One unit is sold on October 31 for $28. Using the table provided, what is the cost of goods sold under the LIFO method?

FIFO is the inventory costing method that follows the physical flow of the goods.

A company will most likely use an estimated method of determining inventory when

Under the LIFO inventory costing method, the most recent costs are assigned to ending inventory.

What is the ending inventory balance at the end of the year rounded to nearest dollar using the average cost method?

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Exam 6: Inventories

List three different security measures taken to safeguard inventory.

Three identical units of merchandise were purchased during May, as follows: ​ ​ Assume that two units are sold on May 23 for $313 total. Determine the gross profit for May and ending inventory on May 31 using (a) FIFO, (b) LIFO, and (c) average cost methods.

The inventory data for an item for November are: Nov. 1 Inventory 20 units at \ 19 4 Sold 10 units 10 Purchased 30 units at \ 20 17 Sold 20 units 30 Purchased 10 units at \ 21 Using a perpetual system, what is the cost of the goods sold for November if the company uses LIFO?

Under the periodic inventory system, the inventory account continuously discloses the amount of inventory on hand.

Which document establishes an initial record of the receipt of the inventory?​

A physical inventory should be taken at the end of every month.

All of the following are reasons to use an estimated method of costing inventory except ​

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

Which document authorizes the purchase of the inventory from an approved vendor?​

Under a periodic inventory system

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

Safeguarding inventory from damage or theft is a primary objective for the control of inventory. If you were running a clothing store, name three specific controls you would implement to guard inventory from theft.

What is the amount of cost of goods sold for the year according to the average cost method?

Which of the following will be the same amount regardless of the cost flow assumption adopted?

Assume that three identical units of merchandise were purchased during October, as follows: Units Cost October 5 Purchase 1 \ 5 12 Purchase 1 13 28 Purchase Total 3 \ 33 -One unit is sold on October 31 for $28. Using the table provided, what is the cost of goods sold under the LIFO method?

FIFO is the inventory costing method that follows the physical flow of the goods.

A company will most likely use an estimated method of determining inventory when

Under the LIFO inventory costing method, the most recent costs are assigned to ending inventory.

What is the ending inventory balance at the end of the year rounded to nearest dollar using the average cost method?

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Three identical units of merchandise were purchased during May, as follows: Assume that two units are sold on May 23 for $313 total. Determine the gross profit for May and ending inventory on May 31 using (a) FIFO, (b) LIFO, and (c) average cost methods.

Which document establishes an initial record of the receipt of the inventory?

All of the following are reasons to use an estimated method of costing inventory except

Which document authorizes the purchase of the inventory from an approved vendor?