Exam 6: Inventories

Beginning inventory,purchases,and sales for an inventory item are as follows: ​ Assuming a perpetual inventory system and the first-in,first-out method,determine (a)the cost of the goods sold for the September 30 sale and (b)the inventory on September 30.

Unsold consigned merchandise should be included in the consignee's inventory.

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 LIFO?

If inventory is being valued at cost and the purchase price is steadily falling,which method of costing will yield the largest net income?

A perpetual inventory system is an effective means of control over inventory.

During a period of consistently rising prices,the method of inventory that will result in reporting the greatest cost of goods sold is

Damaged merchandise that can be sold only at prices below cost should be valued at

Beginning inventory,purchases,and sales for an inventory item are as follows: ​ Assuming a perpetual inventory system and the last-in,first-out method,determine (a)the cost of the goods sold for the September 30 sale and (b)the inventory on September 30.

Beginning inventory,purchases,and sales data for widgets 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.

In the retail inventory method,the cost to retail ratio is equal to the cost of goods sold divided by the retail price of the goods sold.

Kristin's Boutiques has identified the following items for possible inclusion in its December 31 inventory.Which of the following would not be included in the year-end inventory?

Which of the following is not an example for safeguarding inventory?

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

A company will most likely use an estimated method of determining inventory when

During periods of increasing costs,the use of the FIFO method of costing inventory will yield an inventory amount for the balance sheet that is higher than LIFO would produce.

Which of the following companies would be more likely to use the specific identification inventory costing method?

Assuming that the company uses the perpetual inventory system,determine the cost of goods sold for the sale of May 20 using the LIFO inventory cost method.

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

If a company uses a periodic inventory system,the gross profit method can be used to estimate inventory for monthly or quarterly statements.

If the perpetual inventory system is used,the inventory account is debited for purchases of merchandise.