A company had the following purchases during the current year: $\begin{array}{|l|l|} \hline\text { January: } & 10 \text { units at } \$ 120 \\ \hline \text { February: } & 20 \text { units at } \$ 130 \\ \hline \text { May: } & 15 \text { units at } \$ 140 \\ \hline \text { September: } & 12 \text { units at } \$ 150 \\ \hline \text { November: } & 10 \text { units at } \$ 160\\ \hline \end{array}$ 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) $3,500 B) $3,800 C) $3,960 D) $3,280 E) $3,640 A) $3,500 B) $3,800 C) $3,960 D) $3,280 E) $3,640

A company reported the following data: \[\begin{array} { | l | r | r | r | } \hline & { \text { Year 1 } } & { \text { Year 2 } } &{ \text { Year 3 } } \\ \hline \text { Cost of goods sold } & \$ 238,000 & \$ 375,000 & \$ 495,000 \\ \hline \text { Ending inventory } & 120,000 & 150,000 & 180,000 \\ \hline \end{array}\] Required: 1.Calculate the days' sales in inventory for each year. 2.Comment on the trend in inventory management.

1. \[\begin{array} { | r | r | r | } \

A company reported the following data: \[\begin{array} { | l | r | r | r | } \hline & { \text { Year 1 } } & { \text { Year 2 } } & { \text { Year 3 } } \\ \hline \text { Cost of goods sold } & \$ 347,600 & \$ 79,650 & \$ 443,900 \\ \hline \text { Average inventory } & 85,000 & 91,050 & 98,350 \\ \hline \end{array}\] Required: 1.Calculate the company's merchandise inventory turnover for each year. 2.Comment on the company's efficiency in managing its inventory.

1. \[\begin{array} { | c | c | c | } \

Exam 5: Inventories and Cost of Sales

A company uses the retail inventory method and has the following information available concerning its most recent accounting period: At Cost At Retail Beginning-of-period inventory \ 148,600 \ 245,200 Net purchases 677,400 1,229,800 Sales 1,200,000 (a) What is the cost-to-retail ratio using the retail method? (b) What is the estimated cost of the ending inventory?

(Essay)

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Question 61

Given the following information,determine the cost of ending inventory at June 30 using the LIFO perpetual inventory method.Assume this is the first month of the company's operations. June 1: 15 units were purchased at $20 per unit. June 15: 12 units were sold. June 29: 8 units were purchased for $25 per unit.

(Multiple Choice)

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Question 62

Given the following items and costs as of the balance sheet date,determine the value of Faltron Company's merchandise inventory. - $1,000 goods sold by Faltron to another company.The goods are in transit and shipping terms are FOB destination. - $2,000 goods sold by another company to Faltron.The goods are in transit and shipping terms are FOB destination. - $3,000 owned by Faltron but in the possession of another company,the consignee. - Damaged goods owned by Faltron that originally cost $4,000 but now have a $500 net realizable value.

(Multiple Choice)

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Question 63

A company had the following purchases during the current year: January: 10 units at \ 120 February: 20 units at \ 130 May: 15 units at \ 140 September: 12 units at \ 150 November: 10 units at \ 160 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 64

An overstated beginning inventory will __ cost of goods sold and _ net income.

(Short Answer)

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Question 65

The inventory valuation method that results in the lowest taxable income in a period of inflation is:

(Multiple Choice)

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Question 66

A company reported the following data: Year 1 Year 2 Year 3 Cost of goods sold \ 238,000 \ 375,000 \ 495,000 Ending inventory 120,000 150,000 180,000 Required: 1.Calculate the days' sales in inventory for each year. 2.Comment on the trend in inventory management.

(Essay)

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Question 67

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

(Short Answer)

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Question 68

Given the following information,determine the cost of goods sold at November 30 using the LIFO perpetual inventory method. November 3: 15 units were purchased at $8 per unit. November 11: 18 units were purchased at $9.50 per unit. November 15: 15 units were sold at $45 per unit. November 18: 30 units were purchased at $10.75 per unit. November 30: 20 units were sold at $55 per unit.

(Essay)

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Question 69

When purchase costs regularly rise,the ___________________ method of inventory valuation yields the highest gross profit and net income.

(Short Answer)

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Question 70

The inventory turnover ratio is computed by dividing average merchandise inventory by cost of goods sold.

(True/False)

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Question 71

When LIFO is used with the periodic inventory system,cost of goods sold is assigned costs from the most recent purchases at the point of each sale,rather than from the most recent purchases for the period.

(True/False)

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Question 72

According to IRS requirements,companies are allowed to use FIFO for financial reporting and LIFO for tax reporting.

(True/False)

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Question 73

The full disclosure principle requires that the notes to the financial statements report a change in accounting method for inventory costing.

(True/False)

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Question 74

The choice of an inventory valuation method can have a major impact on gross profit and cost of sales.

(True/False)

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Question 75

If obsolete or damaged goods can be sold,they will be included in inventory at their net realizable value.

(True/False)

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Question 76

The lower of cost or market rule for inventory valuation must be applied to each individual unit separately and not to major categories of inventory or to the entire inventory.

(True/False)

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Question 77

A company reported the following data: Year 1 Year 2 Year 3 Cost of goods sold \ 347,600 \ 79,650 \ 443,900 Average inventory 85,000 91,050 98,350 Required: 1.Calculate the company's merchandise inventory turnover for each year. 2.Comment on the company's efficiency in managing its inventory.

(Essay)

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Question 78

When taking a physical count of inventory,the use of prenumbered inventory tickets assists in the control process.

(True/False)

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Question 79

The inventory turnover ratio:

(Multiple Choice)

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Question 80

Showing 61 - 80 of 197

Exam 5: Inventories and Cost of Sales

An overstated beginning inventory will ______________ cost of goods sold and _____________ net income.

The inventory valuation method that results in the lowest taxable income in a period of inflation is:

A company reported the following data: Year 1 Year 2 Year 3 Cost of goods sold \ 238,000 \ 375,000 \ 495,000 Ending inventory 120,000 150,000 180,000 Required: 1.Calculate the days' sales in inventory for each year. 2.Comment on the trend in inventory management.

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

When purchase costs regularly rise,the ___________________ method of inventory valuation yields the highest gross profit and net income.

The inventory turnover ratio is computed by dividing average merchandise inventory by cost of goods sold.

When LIFO is used with the periodic inventory system,cost of goods sold is assigned costs from the most recent purchases at the point of each sale,rather than from the most recent purchases for the period.

According to IRS requirements,companies are allowed to use FIFO for financial reporting and LIFO for tax reporting.

The full disclosure principle requires that the notes to the financial statements report a change in accounting method for inventory costing.

The choice of an inventory valuation method can have a major impact on gross profit and cost of sales.

If obsolete or damaged goods can be sold,they will be included in inventory at their net realizable value.

The lower of cost or market rule for inventory valuation must be applied to each individual unit separately and not to major categories of inventory or to the entire inventory.

A company reported the following data: Year 1 Year 2 Year 3 Cost of goods sold \ 347,600 \ 79,650 \ 443,900 Average inventory 85,000 91,050 98,350 Required: 1.Calculate the company's merchandise inventory turnover for each year. 2.Comment on the company's efficiency in managing its inventory.

When taking a physical count of inventory,the use of prenumbered inventory tickets assists in the control process.

The inventory turnover ratio:

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

An overstated beginning inventory will __ cost of goods sold and _ net income.