Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

The units of an item available for sale during the year were as follows:
​
   There are 48 units of the item in the physical inventory at December 31.The periodic inventory system is used.Determine the inventory cost by (a)the first-in,first-out method,(b)the last-in,first-out method,and (c)the average cost method.Show your work.

Accepted Answer

The answer of The units of an item available for...

Question 3

The units of Manganese Plus available for sale during the year were as follows:
​
   There are 15 units of the product in the physical inventory at November 30.The periodic inventory system is used.Determine the difference in gross profit between the LIFO and FIFO inventory cost systems.

Accepted Answer

The answer of The units of Manganese Plus available for...

Question 4

For the year ended December 31,Depot Max's cost of goods sold was $56,900.Inventory at the beginning of the year was $6,540.Ending inventory was $7,250.Depot Max's number of days' sales in inventory is closest to

Accepted Answer

A)  42 
B)  46 
C)  8 
D)  44 
A)  42 
B)  46 
C)  8 
D)  44

Question 5

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

Accepted Answer

A)  weighted average 
B)  last-in,first-out 
C)  first-in,first-out 
D)  average cost 
A)  weighted average 
B)  last-in,first-out 
C)  first-in,first-out 
D)  average cost

Question 6

Which of the following measures the length of time it takes to acquire,sell,and replace inventory?

Accepted Answer

A)  inventory turnover 
B)  number of days' sales in inventory 
C)  retail method of inventory costing 
D)  gross profit method of inventory costing 
A)  inventory turnover 
B)  number of days' sales in inventory 
C)  retail method of inventory costing 
D)  gross profit method of inventory costing

Question 7

During August,the first month of the fiscal year,sales totaled $875,000 and the cost of merchandise available for sale totaled $850,000.Estimate the cost of the inventory as of August 31,based on an estimated gross profit rate of 45%.

Accepted Answer

The answer of During August,the first month of the fiscal...

Question 8

What is the amount of the inventory at the end of the year using the FIFO method?

Accepted Answer

A)  $1,685 
B)  $1,575 
C)  $1,805 
D)  $3,585 
A)  $1,685 
B)  $1,575 
C)  $1,805 
D)  $3,585

Question 9

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

Accepted Answer

A)  ​number of items ordered 
B)  ​gross profit 
C)  ​cost of goods sold 
D)  ​ending inventory 
A)  ​number of items ordered 
B)  ​gross profit 
C)  ​cost of goods sold 
D)  ​ending inventory

Question 10

One negative effect of carrying too much inventory is risk that customers will change their buying habits.

Accepted Answer

A) True 
 B)False

Question 11

During periods of increasing costs,the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method.

Accepted Answer

A) True 
 B)False

Question 12

When using the FIFO inventory costing method,the most recent costs are assigned to the cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

In valuing merchandise for inventory purposes,net realizable value is the estimated selling price less any direct costs of disposal.

Accepted Answer

A) True 
 B)False

Question 15

FIFO reports higher gross profit and net income than the LIFO method when ​

Accepted Answer

A)  ​prices are increasing 
B)  ​prices are decreasing 
C)  ​prices remain stable 
D)  ​prices are reduced by 50% 
A)  ​prices are increasing 
B)  ​prices are decreasing 
C)  ​prices remain stable 
D)  ​prices are reduced by 50%

Question 16

Assume that three identical units of merchandise are purchased during October,as follows:
​
​
   Assume one unit is sold on October 31 for $28.Determine cost of goods sold,gross profit,and ending inventory under the FIFO method.

Accepted Answer

The answer of Assume that three identical units of merchandise...

Question 17

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.
​

Accepted Answer

(a) ​ @#IMG-DLM& ​ (

Question 18

The units of an item available for sale during the year were as follows:
​
   There are 19 units of the item in the physical inventory at December 31.The periodic inventory system is used.Determine the ending inventory cost using LIFO.

Accepted Answer

$466 (10 u

Question 19

The inventory data for an item for November are: Using a perpetual system,what is the cost of the goods sold for November if the company uses FIFO?

Accepted Answer

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

Question 20

Which of the following measures the relationship between cost of goods sold and the amount of inventory carried during the period?

Accepted Answer

A)  inventory turnover 
B)  fixed asset turnover 
C)  retail method of inventory costing 
D)  gross profit method of inventory costing 
A)  inventory turnover 
B)  fixed asset turnover 
C)  retail method of inventory costing 
D)  gross profit method of inventory costing

Exam 6: Inventories

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

The units of Manganese Plus available for sale during the year were as follows: ​ There are 15 units of the product in the physical inventory at November 30.The periodic inventory system is used.Determine the difference in gross profit between the LIFO and FIFO inventory cost systems.

For the year ended December 31,Depot Max's cost of goods sold was $56,900.Inventory at the beginning of the year was $6,540.Ending inventory was $7,250.Depot Max's number of days' sales in inventory is closest to

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

Which of the following measures the length of time it takes to acquire,sell,and replace inventory?

During August,the first month of the fiscal year,sales totaled $875,000 and the cost of merchandise available for sale totaled $850,000.Estimate the cost of the inventory as of August 31,based on an estimated gross profit rate of 45%.

What is the amount of the inventory at the end of the year using the FIFO method?

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

One negative effect of carrying too much inventory is risk that customers will change their buying habits.

During periods of increasing costs,the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method.

When using the FIFO inventory costing method,the most recent costs are assigned to the cost of goods sold.

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

In valuing merchandise for inventory purposes,net realizable value is the estimated selling price less any direct costs of disposal.

FIFO reports higher gross profit and net income than the LIFO method when ​

Assume that three identical units of merchandise are purchased during October,as follows: ​ ​ Assume one unit is sold on October 31 for $28.Determine cost of goods sold,gross profit,and ending inventory under the FIFO method.

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. ​

The units of an item available for sale during the year were as follows: ​ There are 19 units of the item in the physical inventory at December 31.The periodic inventory system is used.Determine the ending inventory cost using LIFO.

The inventory data for an item for November are: Using a perpetual system,what is the cost of the goods sold for November if the company uses FIFO?

Which of the following measures the relationship between cost of goods sold and the amount of inventory carried during the period?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising 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

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

The units of Manganese Plus available for sale during the year were as follows: There are 15 units of the product in the physical inventory at November 30.The periodic inventory system is used.Determine the difference in gross profit between the LIFO and FIFO inventory cost systems.

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

FIFO reports higher gross profit and net income than the LIFO method when

Assume that three identical units of merchandise are purchased during October,as follows: Assume one unit is sold on October 31 for $28.Determine cost of goods sold,gross profit,and ending inventory under the FIFO method.

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.

The units of an item available for sale during the year were as follows: There are 19 units of the item in the physical inventory at December 31.The periodic inventory system is used.Determine the ending inventory cost using LIFO.