Quan uses a periodic inventory system.The company had the following data for the month of April: \[\begin{array}{lll} \text { April } 1 & \text { On hand, } 10 \text { units } @ \$ 2 \text { each } & \$ 20 \\ 19 & \text { Purchased } 90 \text { units } @ \$ 3 \text { each } & 270 \\ & \text { Cost of goods avail able for sale } & \$ 290\\ 30& \text { On hand, } 20 \text { units } \end{array}\] - If Quan uses the LIFO method,how much is inventory on the balance sheet as of April 30?

A) $40 B) $50 C) $58 D) $60 A) $40 B) $50 C) $58 D) $60

A) occurs as a result of selling more units than are purchased during the period. B) occurs as a result of selling less units than are purchased during the period. C) occurs as a result of selling the same number of units that are purchased during the period. D) often results in favorable tax consequences if a company is using LIFO. A) occurs as a result of selling more units than are purchased during the period. B) occurs as a result of selling less units than are purchased during the period. C) occurs as a result of selling the same number of units that are purchased during the period. D) often results in favorable tax consequences if a company is using LIFO.

Goldman Inc. The following is from Goldman Inc.'s 2017 income statement. \[\begin{array} { l r } \text { Purchases } & \$ 172,000 \\ \text { Transportation-in } & 11,000 \\ \text { Inventory, January 1, 2017 } & 26,500 \\ \text { Inventory, December 31, 2017 } & 28,800 \\ \text { Purchase returns and allowances } & 8,400 \end{array}\] - How much will Goldman report as cost of goods purchased in its 2017 income statement?

A) $174,600 B) $183,000 C) $180,400 D) None of these choices A) $174,600 B) $183,000 C) $180,400 D) None of these choices

Exam 5: Inventories and Cost of Goods Sold

Cooking Corner Cooking Corner reported inventory on its balance sheet at December 31, 2016 at $32,000. During 2017, Cooking Corner purchased goods totaling $634,000 on account with terms of 2/10, n/30, FOB shipping point. Total charges paid by Cooking Corner directly to the freight company were $1,000. At the end of 2017, inventory on hand totaled to $45,000. Net sales for 2017 totaled $1,300,000. Cooking Corner employs a periodic inventory system. -Refer to the information for Grappa,Inc. How much is cost of goods sold for 2018?

(Essay)

4.7/5

(31)

Question 101

Which of the following is not an acceptable inventory costing method under IFRS?

(Multiple Choice)

4.8/5

(38)

Question 102

Chamberlain Company buys designer clothing to sell in its retail stores.Since much of the merchandise comes from Dallas and Europe,Chamberlain Company must pay freight charges to get the merchandise shipped in.Which of the following statements is true?

(Multiple Choice)

4.8/5

(39)

Question 103

Which inventory costing method assigns the same cost to all units whether sold or left in ending inventory?

(Multiple Choice)

4.8/5

(43)

Question 104

Quan uses a periodic inventory system.The company had the following data for the month of April: April 1 On hand, 10 units @\ 2 each \ 20 19 Purchased 90 units @\ 3 each 270 Cost of goods avail able for sale \ 290 30 On hand, 20 units - If Quan uses the LIFO method,how much is inventory on the balance sheet as of April 30?

(Multiple Choice)

4.8/5

(48)

Question 105

Which of the following accounts would not be found as an asset on the balance sheet of a manufacturer?

(Multiple Choice)

4.9/5

(46)

Question 106

Assume that a company is experiencing increasing inventory prices and prepares its financial statements in accordance with IFRS.Which costing method should it use to pay the least amount of taxes? Explain your answer.

(Essay)

4.9/5

(28)

Question 107

LIFO liquidation

(Multiple Choice)

4.8/5

(34)

Question 108

Payment for the acquisition of inventories is shown on the statement of cash flows as

(Multiple Choice)

4.8/5

(33)

Question 109

Cost of goods sold is equal to the

(Multiple Choice)

4.8/5

(40)

Question 110

Ewing Inc.manufactures digital cameras and has experienced noticeable declines in the purchase price of many of the components it uses,including memory components.Which inventory costing method should Ewing use if it wants to maximize net income? Explain your answer.

(Essay)

4.8/5

(34)

Question 111

Goldman Inc. The following is from Goldman Inc.'s 2017 income statement. Purchases \ 172,000 Transportation-in 11,000 Inventory, January 1, 2017 26,500 Inventory, December 31, 2017 28,800 Purchase returns and allowances 8,400 - How much will Goldman report as cost of goods purchased in its 2017 income statement?

(Multiple Choice)

4.9/5

(41)

Question 112

Which of the following statements is not true?

(Multiple Choice)

4.8/5

(41)

Question 113

A departure from the cost basis of accounting may be necessary when the __________ of the inventory is less than its cost to the company.

(Short Answer)

4.8/5

(34)

Question 114

The gross profit ratio is calculated as gross profit divided by net income.

(True/False)

4.9/5

(41)

Question 115

Credit terms of n/30 mean that the net amount of the invoice,less any returns or allowances,is due within 30 days of the date of the invoice.

(True/False)

4.8/5

(42)

Question 116

If ending inventory is understated,then cost of goods sold is overstated.

(True/False)

4.8/5

(32)

Question 117

Which of the following statements is not true regarding the gross profit ratio?

(Multiple Choice)

4.8/5

(40)

Question 118

Gently Used Cars is a dealer that uses the periodic inventory system.The data presented below is from the accounting records of Gently for the year ended December 31,2017. ? Sales \ 585,000 Sales discounts 3,000 Purchases 420,000 Purchase returns 5,000 Inventory (January 1, 2017) 33,000 Inventory (December 31,2017) 37,000 Operating expenses 146,000 Transportation-in 10,000 Retained earnings (January 1, 2017) 71,000 Using the amounts provided above,calculate the cost of goods sold for 2017.

(Essay)

4.8/5

(47)

Question 119

Which of the following statements regarding the application of the lower-of-cost-or-market (LCM)rule is true?

(Multiple Choice)

4.8/5

(35)

Question 120

Showing 101 - 120 of 222

Which of the following is not an acceptable inventory costing method under IFRS?

Chamberlain Company buys designer clothing to sell in its retail stores.Since much of the merchandise comes from Dallas and Europe,Chamberlain Company must pay freight charges to get the merchandise shipped in.Which of the following statements is true?

Which inventory costing method assigns the same cost to all units whether sold or left in ending inventory?

Which of the following accounts would not be found as an asset on the balance sheet of a manufacturer?

Assume that a company is experiencing increasing inventory prices and prepares its financial statements in accordance with IFRS.Which costing method should it use to pay the least amount of taxes? Explain your answer.

LIFO liquidation

Payment for the acquisition of inventories is shown on the statement of cash flows as

Cost of goods sold is equal to the

Ewing Inc.manufactures digital cameras and has experienced noticeable declines in the purchase price of many of the components it uses,including memory components.Which inventory costing method should Ewing use if it wants to maximize net income? Explain your answer.

Which of the following statements is not true?

A departure from the cost basis of accounting may be necessary when the __________ of the inventory is less than its cost to the company.

The gross profit ratio is calculated as gross profit divided by net income.

Credit terms of n/30 mean that the net amount of the invoice,less any returns or allowances,is due within 30 days of the date of the invoice.

If ending inventory is understated,then cost of goods sold is overstated.

Which of the following statements is not true regarding the gross profit ratio?

Which of the following statements regarding the application of the lower-of-cost-or-market (LCM)rule is true?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters