Question 1

A subsidiary inventory ledger can be an aid in maintaining inventory levels at their proper levels.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

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 inventory cost by (a)FIFO,(b)LIFO,and (c)average cost methods.

Accepted Answer

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

Question 4

On the basis of the following data,determine the estimated cost of the inventory as of March 31 by the retail method,presenting details of the computation in good order.

Accepted Answer

The answer of On the basis of the following data,determine...

Question 5

On the basis of the following data for Sanford Industries as of December 31,determine the value of the inventory at the lower of cost or market.Also,show how the inventory would appear on the balance sheet (assume that the cost was determined by the FIFO method).Apply lower of cost or market to each inventory item.

Accepted Answer

Inventory

Question 6

Three identical units of merchandise were purchased during July,as follows:
​
   Assume one unit sells on July 28 for $45.
Determine the gross profit,cost of goods sold,and ending inventory on July 31 using (a)first-in,first-out,(b)last-in,first-out,and (c)average cost flow methods.

Accepted Answer

The answer of Three identical units of merchandise were purchased...

Question 7

List the internal control objectives illustrated by the following:

Accepted Answer

The answer of List the internal control objectives illustrated by...

Question 8

Using a LIFO perpetual cost flow,calculate the value of the ending inventory and the cost of goods sold for the month of November of Beamer Company using the data below.
​
Nov.1 Purchased 600 units $80 each
4 Sold 200 units
11 Purchased 350 units $82 each
12 Sold 275 units
22 Purchased 175 units $84 each
23 Sold 155 units
​
Calculate the following:
(a)Inventory valuation at the end of November
(b)Calculate the cost of goods sold for November

Accepted Answer

(a)Inventory valuation:400 @ $

Question 9

Inventory at the end of the year was inadvertently overstated.Which of the following statements correctly states the effect of the error on net income,assets,and stockholders' equity?

Accepted Answer

A)  net income is overstated,assets are overstated,and stockholders' equity is understated 
B)  net income is overstated,assets are overstated,and stockholders' equity is overstated 
C)  net income is understated,assets are understated,and stockholders' equity is understated 
D)  net income is understated,assets are understated,and stockholders' equity is overstated 
A)  net income is overstated,assets are overstated,and stockholders' equity is understated 
B)  net income is overstated,assets are overstated,and stockholders' equity is overstated 
C)  net income is understated,assets are understated,and stockholders' equity is understated 
D)  net income is understated,assets are understated,and stockholders' equity is overstated

Question 10

A consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor.

Accepted Answer

A) True 
 B)False

Question 11

The value of ending inventory using LIFO is ​

Accepted Answer

A)  $1,250 
B)  $1,350 
C)  $1,375 
D)  $1,150 
A)  $1,250 
B)  $1,350 
C)  $1,375 
D)  $1,150

Question 12

During a period of falling prices,which of the following inventory methods generally results in the lowest balance sheet amount for inventory?

Accepted Answer

A)  average cost method 
B)  LIFO method 
C)  FIFO method 
D)  cannot tell without more information 
A)  average cost method 
B)  LIFO method 
C)  FIFO method 
D)  cannot tell without more information

Question 13

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 according to the LIFO method?

Accepted Answer

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

Question 14

Assuming that the company uses the perpetual inventory system,determine the gross profit for the sale of May 23 using the FIFO inventory cost method.

Accepted Answer

A)  $108 
B)  $120 
C)  $72 
D)  $180 
A)  $108 
B)  $120 
C)  $72 
D)  $180

Question 15

If inventory is being valued at cost and the price level is steadily rising,the method of costing that will yield the highest net income is

Accepted Answer

A)  periodic 
B)  LIFO 
C)  FIFO 
D)  average cost 
A)  periodic 
B)  LIFO 
C)  FIFO 
D)  average cost

Question 16

Under a periodic inventory system

Accepted Answer

A)  accounting records continuously disclose the amount of inventory 
B)  a separate account for each type of merchandise is maintained in a subsidiary ledger 
C)  a physical inventory is taken at the end of the period 
D)  inventory is debited when goods are returned to vendors 
A)  accounting records continuously disclose the amount of inventory 
B)  a separate account for each type of merchandise is maintained in a subsidiary ledger 
C)  a physical inventory is taken at the end of the period 
D)  inventory is debited when goods are returned to vendors

Question 17

Assuming that the company uses the perpetual inventory system,determine the gross profit for the month of May using the LIFO cost method. ​

Accepted Answer

A)  $348 
B)  $452 
C)  $444 
D)  $356 
A)  $348 
B)  $452 
C)  $444 
D)  $356

Question 18

Average inventory is computed by adding the inventory at the beginning of the period to the inventory at the end of the period and dividing by two.

Accepted Answer

A) True 
 B)False

Question 19

The number of days' sales in inventory measures​

Accepted Answer

A)  ​the length of time it takes to acquire,sell,and replace the inventory 
B)  ​the length of time it takes to acquire and receive payment for the inventory 
C)  ​the number of days inventory is on hand prior to sale 
D)  ​the number of days inventory takes to arrive after ordering 
A)  ​the length of time it takes to acquire,sell,and replace the inventory 
B)  ​the length of time it takes to acquire and receive payment for the inventory 
C)  ​the number of days inventory is on hand prior to sale 
D)  ​the number of days inventory takes to arrive after ordering

Question 20

Inventory controls start when the merchandise is shelved in the store area.

Accepted Answer

A) True 
 B)False

Exam 6: Inventories

A subsidiary inventory ledger can be an aid in maintaining inventory levels at their proper levels.

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

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 inventory cost by (a)FIFO,(b)LIFO,and (c)average cost methods.

On the basis of the following data,determine the estimated cost of the inventory as of March 31 by the retail method,presenting details of the computation in good order.

Three identical units of merchandise were purchased during July,as follows: ​ Assume one unit sells on July 28 for $45. Determine the gross profit,cost of goods sold,and ending inventory on July 31 using (a)first-in,first-out,(b)last-in,first-out,and (c)average cost flow methods.

List the internal control objectives illustrated by the following:

Inventory at the end of the year was inadvertently overstated.Which of the following statements correctly states the effect of the error on net income,assets,and stockholders' equity?

A consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor.

The value of ending inventory using LIFO is ​

During a period of falling prices,which of the following inventory methods generally results in the lowest balance sheet amount for inventory?

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 according to the LIFO method?

Assuming that the company uses the perpetual inventory system,determine the gross profit for the sale of May 23 using the FIFO inventory cost method.

If inventory is being valued at cost and the price level is steadily rising,the method of costing that will yield the highest net income is

Under a periodic inventory system

Assuming that the company uses the perpetual inventory system,determine the gross profit for the month of May using the LIFO cost method. ​

Average inventory is computed by adding the inventory at the beginning of the period to the inventory at the end of the period and dividing by two.

The number of days' sales in inventory measures​

Inventory controls start when the merchandise is shelved in the store area.

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 inventory cost by (a)FIFO,(b)LIFO,and (c)average cost methods.

Three identical units of merchandise were purchased during July,as follows: Assume one unit sells on July 28 for $45. Determine the gross profit,cost of goods sold,and ending inventory on July 31 using (a)first-in,first-out,(b)last-in,first-out,and (c)average cost flow methods.

The value of ending inventory using LIFO is

Assuming that the company uses the perpetual inventory system,determine the gross profit for the month of May using the LIFO cost method.

The number of days' sales in inventory measures