A company made the following merchandise purchases and sales during the month of May: $\begin{array}{|l|l|l|l|} \hline\text { May 1 purchased } & 380 & \text { units at } & \$ 15 \text { each } \\ \hline \text { May 5 purchased } & 270 & \text { units at } & \$ 17 \text { each } \\ \hline \text { May 10 sold } & 400 & \text { units at } & \$ 50 \text { each } \\ \hline \text { May 20 purchased } & 300 & \text { units at } & \$ 22 \text { each } \\ \hline \text { May 25 sold } & 400 & \text { units at } & \$ 50 \text { each }\\ \hline \end{array}$ There was no beginning inventory.If the company uses the FIFO periodic inventory method,what would be the cost of the ending inventory?

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

Exam 5: Inventories and Cost of Sales

Given the following information,determine the cost of ending inventory at December 31 using the LIFO perpetual inventory method. December 2: 5 units were purchased at $7 per unit. December 9: 10 units were purchased at $9.40 per unit. December 11: 12 units were sold at $35 per unit. December 15: 20 units were purchased at $10.15 per unit. December 22: 18 units were sold at $35 per unit.

(Multiple Choice)

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Question 181

A company uses a weighted-average perpetual inventory system. August 2: 10 units were purchased at $12 per unit. August 18: 15 units were purchased at $15 per unit. August 29: 20 units were sold. August 31: 14 units were purchased at $16 per unit. What is the per-unit value of ending inventory on August 31?

(Multiple Choice)

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Question 182

To avoid the time-consuming process of taking an inventory each year,the majority of companies use the gross profit method to estimate ending inventory.

(True/False)

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Question 183

Given the following information,determine the cost of goods sold for December 31 using the FIFO periodic inventory method: December 2: 5 units were purchased at $7 per unit. December 9: 10 units were purchased at $9.40 per unit. December 11: 12 units were sold at $35 per unit. December 15: 20 units were purchased at $10.15 per unit. December 22: 18 units were sold at $35 per unit.

(Multiple Choice)

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Question 184

During January,a company that uses a perpetual inventory system had beginning inventory,purchases,and sales as follows.What was the LIFO cost of the company's January 31 inventory?

(Essay)

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Question 185

A company reported the following information regarding its inventory. Beginning inventory: cost is $70,000; retail is $130,000. Net purchases: cost is $65,000; retail is $120,000. Sales at retail: $145,000. The year-end inventory showed $105,000 worth of merchandise available at retail prices.What is the cost of the ending inventory?

(Multiple Choice)

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Question 186

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 187

If the _______________ is responsible for paying the freight,ownership of merchandise inventory passes when goods are loaded on the transport vehicle.

(Short Answer)

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Question 188

A company has inventory of 15 units at a cost of $12 each on August 1.On August 5,they purchased 10 units at $13 per unit.On August 12,they purchased 20 units at $14 per unit.On August 15,they sold 30 units.Using the FIFO perpetual inventory method,what is the value of the inventory on August 15 after the sale?

(Multiple Choice)

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Question 189

The cost of an inventory item includes the _,plus __ costs necessary to put it in a place and condition for sale.

(Essay)

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Question 190

A company can change its inventory costing method without mentioning this change in its financial statements since it is a decision made by internal management.

(True/False)

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Question 191

What costs are assigned to merchandise inventory?

(Essay)

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Question 192

The _____________________ method of assigning costs to inventory and cost of goods sold assumes that the inventory items are sold in the order acquired.

(Short Answer)

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Question 193

LIFO assumes that inventory costs flow in the order they were incurred.

(True/False)

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Question 194

A corporation uses a FIFO perpetual inventory system. August 2,25 units were purchased at $12 per unit. August 5,10 units were purchased at $13 per unit. August 15,12 units were sold at $25 per unit. August 18,15 units were purchased at $14 per unit. What was the amount of the ending inventory for the month of August?

(Multiple Choice)

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Question 195

On June 30 a company needed to estimate its ending inventory to prepare its second quarter financial statements.The following information is available: Beginning inventory,April 1: $6,000 Net sales: $70,000 Net purchases: $36,000 The company's gross margin ratio is 12%.Using the gross profit method,the cost of goods sold would be:

(Multiple Choice)

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Question 196

A company made the following merchandise purchases and sales during the month of May: May 1 purchased 380 units at \ 15 each May 5 purchased 270 units at \ 17 each May 10 sold 400 units at \ 50 each May 20 purchased 300 units at \ 22 each May 25 sold 400 units at \ 50 each There was no beginning inventory.If the company uses the FIFO periodic inventory method,what would be the cost of the ending inventory?

(Essay)

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Question 197

Showing 181 - 197 of 197

To avoid the time-consuming process of taking an inventory each year,the majority of companies use the gross profit method to estimate ending inventory.

During January,a company that uses a perpetual inventory system had beginning inventory,purchases,and sales as follows.What was the LIFO cost of the company's January 31 inventory?

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

If the _______________ is responsible for paying the freight,ownership of merchandise inventory passes when goods are loaded on the transport vehicle.

The cost of an inventory item includes the _,plus __ costs necessary to put it in a place and condition for sale.

A company can change its inventory costing method without mentioning this change in its financial statements since it is a decision made by internal management.

What costs are assigned to merchandise inventory?

The _____________________ method of assigning costs to inventory and cost of goods sold assumes that the inventory items are sold in the order acquired.

LIFO assumes that inventory costs flow in the order they were incurred.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing

Activity-Based Costing and Analysis

Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Decentralization and Performance Measurement

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Accounting With Special Journals

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Filters

Exam 5: Inventories and Cost of Sales

To avoid the time-consuming process of taking an inventory each year,the majority of companies use the gross profit method to estimate ending inventory.

During January,a company that uses a perpetual inventory system had beginning inventory,purchases,and sales as follows.What was the LIFO cost of the company's January 31 inventory?

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

If the _______________ is responsible for paying the freight,ownership of merchandise inventory passes when goods are loaded on the transport vehicle.

The cost of an inventory item includes the _____________,plus ______________ costs necessary to put it in a place and condition for sale.

A company can change its inventory costing method without mentioning this change in its financial statements since it is a decision made by internal management.

What costs are assigned to merchandise inventory?

The _____________________ method of assigning costs to inventory and cost of goods sold assumes that the inventory items are sold in the order acquired.

LIFO assumes that inventory costs flow in the order they were incurred.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing

Activity-Based Costing and Analysis

Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Decentralization and Performance Measurement

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Accounting With Special Journals

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Filters

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

The cost of an inventory item includes the _,plus __ costs necessary to put it in a place and condition for sale.