Question 1

If a manufacturer ships merchandise to a retailer on consignment,the unsold merchandise should be included in the inventory of the

Accepted Answer

A)  consignee 
B)  retailer 
C)  manufacturer 
D)  shipper 
A)  consignee 
B)  retailer 
C)  manufacturer 
D)  shipper

Question 2

If a company values inventory at the lower of cost or market,which of the following is the value of inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole.

Accepted Answer

A)  $6,960 
B)  $7,700 
C)  $6,540 
D)  $7,280 
A)  $6,960 
B)  $7,700 
C)  $6,540 
D)  $7,280

Question 3

Beginning inventory,purchases,and sales data for tennis rackets are as follows:
​
   Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of goods sold and ending inventory using FIFO.
​

Accepted Answer

The answer of Beginning inventory,purchases,and sales data for tennis rackets...

Question 4

Beginning inventory,purchases,and sales for an inventory item are as follows:
​
​
   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?

Accepted Answer

$805 × 240

Question 5

During the taking of its physical inventory on December 31,Almond Supplies Company incorrectly counted its inventory as $545,000 instead of the correct amount of $554,000.Indicate the effects of the misstatement on Almond Supplies Company's balance sheet and income statement for the year ended December 31.

Accepted Answer

The answer of During the taking of its physical inventory...

Question 6

The lower-of-cost-or-market method of determining the value of ending inventory can be applied on an item by item,by major classification of inventory,or by the total inventory.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  ​receiving report 
B)  ​vendor's invoice 
C)  ​purchase order 
D)  ​petty cash voucher 
A)  ​receiving report 
B)  ​vendor's invoice 
C)  ​purchase order 
D)  ​petty cash voucher

Question 8

Under the periodic inventory system,a physical inventory is taken to determine the cost of the inventory on hand and the cost of the goods sold.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The three inventory costing methods will normally each yield different amounts of net income.

Accepted Answer

A) True 
 B)False

Question 11

If Beginning Inventory (BI)+ Purchases (P)- Ending Inventory (EI)= Cost of Goods Sold (COGS),an equivalent equation can be written as​

Accepted Answer

A)  BI + P = COGS - EI 
B)  BI - P = COGS + EI 
C)  BI + P = COGS + EI 
D)  EI + P = COGS - BI 
A)  BI + P = COGS - EI 
B)  BI - P = COGS + EI 
C)  BI + P = COGS + EI 
D)  EI + P = COGS - BI

Question 12

When inventory is shown on the balance sheet,both the method of determining the cost of the inventory and the method of valuing the inventory should be shown.

Accepted Answer

A) True 
 B)False

Question 13

Beginning inventory,purchases,and sales data for tennis rackets are as follows:
​
   Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of goods sold and ending inventory using LIFO.

Accepted Answer

The answer of Beginning inventory,purchases,and sales data for tennis rackets...

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Too much inventory on hand

Accepted Answer

A)  ties up funds that could be used to improve operations 
B)  increases the cost to safeguard the assets 
C)  increases the losses due to price declines 
D)  all of these 
A)  ties up funds that could be used to improve operations 
B)  increases the cost to safeguard the assets 
C)  increases the losses due to price declines 
D)  all of these

Question 16

The firm uses the periodic system,and there are 20 units of the commodity on hand at the end of the year.What is the amount of inventory at the end of the year rounded to nearest dollar according to the average cost method?

Accepted Answer

A)  $655 
B)  $620 
C)  $690 
D)  $659 
A)  $655 
B)  $620 
C)  $690 
D)  $659

Question 17

The value of ending inventory rounded to nearest dollar using average cost is:

Accepted Answer

A)  $1,353 
B)  $1,263 
C)  $1,375 
D)  $1,150 
A)  $1,353 
B)  $1,263 
C)  $1,375 
D)  $1,150

Question 18

If a company mistakenly counts more items during a physical inventory than actually exist,how will the error affect their bottom line?

Accepted Answer

A)  no change to net income 
B)  net income will be overstated 
C)  net income will be understated 
D)  only gross profit will be affected 
A)  no change to net income 
B)  net income will be overstated 
C)  net income will be understated 
D)  only gross profit will be affected

Question 19

If Addison uses FIFO,the cost of the ending inventory on September 30 is

Accepted Answer

A)  $800 
B)  $650 
C)  $750 
D)  $700 
A)  $800 
B)  $650 
C)  $750 
D)  $700

Question 20

Based on the following information: compute (a)inventory turnover; (b)average daily cost of goods sold; and (c)number of days' sales in inventory for the current year.Use a 365-day year.(d)If an inventory turnover of 12 is average for the industry,how is this company doing?

Accepted Answer

The answer of Based on the following information: compute (a)inventory...

Exam 6: Inventories

If a manufacturer ships merchandise to a retailer on consignment,the unsold merchandise should be included in the inventory of the

If a company values inventory at the lower of cost or market,which of the following is the value of inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole.

Beginning inventory,purchases,and sales data for tennis rackets are as follows: ​ Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of goods sold and ending inventory using FIFO. ​

Beginning inventory,purchases,and sales for an inventory item are as follows: ​ ​ 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?

The lower-of-cost-or-market method of determining the value of ending inventory can be applied on an item by item,by major classification of inventory,or by the total inventory.

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

Under the periodic inventory system,a physical inventory is taken to determine the cost of the inventory on hand and the cost of the goods sold.

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

The three inventory costing methods will normally each yield different amounts of net income.

If Beginning Inventory (BI)+ Purchases (P)- Ending Inventory (EI)= Cost of Goods Sold (COGS),an equivalent equation can be written as​

When inventory is shown on the balance sheet,both the method of determining the cost of the inventory and the method of valuing the inventory should be shown.

Beginning inventory,purchases,and sales data for tennis rackets are as follows: ​ Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of goods sold and ending inventory using LIFO.

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

Too much inventory on hand

The firm uses the periodic system,and there are 20 units of the commodity on hand at the end of the year.What is the amount of inventory at the end of the year rounded to nearest dollar according to the average cost method?

The value of ending inventory rounded to nearest dollar using average cost is:

If a company mistakenly counts more items during a physical inventory than actually exist,how will the error affect their bottom line?

If Addison uses FIFO,the cost of the ending inventory on September 30 is

Based on the following information: compute (a)inventory turnover; (b)average daily cost of goods sold; and (c)number of days' sales in inventory for the current year.Use a 365-day year.(d)If an inventory turnover of 12 is average for the industry,how is this company doing?

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

Beginning inventory,purchases,and sales data for tennis rackets are as follows: Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of goods sold and ending inventory using FIFO.

Beginning inventory,purchases,and sales for an inventory item are as follows: 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?

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

If Beginning Inventory (BI)+ Purchases (P)- Ending Inventory (EI)= Cost of Goods Sold (COGS),an equivalent equation can be written as

Beginning inventory,purchases,and sales data for tennis rackets are as follows: Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of goods sold and ending inventory using LIFO.