Question 1

Determine the total value of the merchandise using net realizable value.

Accepted Answer

A) $35 
B) $80 
C) $115 
D) $25 
A) $35 
B) $80 
C) $115 
D) $25

Question 2

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 merchandise sold and ending inventory using LIFO.

Accepted Answer

The answer of Beginning inventory,purchases,and sales data for widgets are...

Question 3

A physical inventory should be taken at the end of every month.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Based on the following information,compute 
(a)inventory turnover 
(b)average daily cost of merchandise sold using a 365-day year and 
(c)days' sales in inventory.​Cost of merchandise sold $195,640Inventory:Beginning 20,500Ending 18,628

Accepted Answer

(a)$195,640 ÷ [
($20,500 + $18

Question 6

Use the information below to answer the following questions.
Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
​
   ​
-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 7

Which document establishes an initial record of the receipt of 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

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Generally,the lower the days' sales in inventory,the better.

Accepted Answer

A) True 
 B)False

Question 11

Brutus Corporation,a newly formed corporation,has the following transactions during May,its first month of operations.​May 1 Purchased 500 units @ $25.00 each.4 Purchased 300 units @ $24.00 each.6 Sold 400 units @ $38.00 each.8 Purchased 700 units @ $23.00 each.13 Sold 450 units @ $37.50 each.20 Purchased 250 units @ $25.25 each.22 Sold 275 units @ $36.00 each.27 Sold 300 units @ $37.00 each.28 Purchased 550 units @ $26.00 each.30 Sold 100 units @ $39.00 each.​Calculate total sales,cost of merchandise sold,gross profit,and ending inventory using each of the following inventory methods:
1.FIFO perpetual
2.FIFO periodic
3.LIFO perpetual
4.LIFO periodic
5.Average cost periodic 
(round average to nearest cent)

Accepted Answer

Total sales 
(not dependent on inventory

Question 12

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 13

Based on the following data,calculate the estimated cost of the merchandise inventory on March 31 using the retail method.

Accepted Answer

The answer of Based on the following data,calculate the estimated...

Question 14

Match each description to the appropriate inventory system (a or b).​
-This system can be costly and time consuming if not computerized.

Accepted Answer

A) Perpetual 
B) Periodic 
A) Perpetual 
B) Periodic

Question 15

Match each description to the appropriate inventory system (a or b).​
-Under this system,only revenue is recorded when sales are made.

Accepted Answer

A) Perpetual 
B) Periodic 
A) Perpetual 
B) Periodic

Question 16

Use the information below to answer the following questions.
Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
​
   ​
-Assuming that the company uses the perpetual inventory system,determine the cost of merchandise sold for the sale of May 20 using the FIFO inventory cost method.

Accepted Answer

A) $120 
B) $180 
C) $136 
D) $144 
A) $120 
B) $180 
C) $136 
D) $144

Question 17

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 choices 
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 choices

Question 18

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 merchandise sold,gross profit,and ending inventory under the FIFO method.

Accepted Answer

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

Question 19

​
Match each description to the appropriate cost flow assumption (a-c).
-Widely used for tax purposes

Accepted Answer

A) FIFO 
B) LIFO 
C) Weighted average 
A) FIFO 
B) LIFO 
C) Weighted average

Question 20

Applying the lower of cost or market to each item of inventory,what should the total inventory value be for the following items?​

Accepted Answer

The answer of Applying the lower of cost or market...

Determine the total value of the merchandise using net realizable value.

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 merchandise sold and ending inventory using LIFO.

A physical inventory should be taken at the end of every month.

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

Based on the following information,compute (a)inventory turnover (b)average daily cost of merchandise sold using a 365-day year and (c)days' sales in inventory.Cost of merchandise sold $195,640Inventory:Beginning 20,500Ending 18,628

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

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

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

Generally,the lower the days' sales in inventory,the better.

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

Based on the following data,calculate the estimated cost of the merchandise inventory on March 31 using the retail method.

Match each description to the appropriate inventory system (a or b). -This system can be costly and time consuming if not computerized.

Match each description to the appropriate inventory system (a or b). -Under this system,only revenue is recorded when sales are made.

Too much inventory on hand

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 merchandise sold,gross profit,and ending inventory under the FIFO method.

Match each description to the appropriate cost flow assumption (a-c). -Widely used for tax purposes

Applying the lower of cost or market to each item of inventory,what should the total inventory value be for the following items?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 7: Inventories

Determine the total value of the merchandise using net realizable value.

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 merchandise sold and ending inventory using LIFO.

A physical inventory should be taken at the end of every month.

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

Based on the following information,compute (a)inventory turnover (b)average daily cost of merchandise sold using a 365-day year and (c)days' sales in inventory.​Cost of merchandise sold $195,640Inventory:Beginning 20,500Ending 18,628

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

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

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

Generally,the lower the days' sales in inventory,the better.

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

Based on the following data,calculate the estimated cost of the merchandise inventory on March 31 using the retail method.

Match each description to the appropriate inventory system (a or b).​ -This system can be costly and time consuming if not computerized.

Match each description to the appropriate inventory system (a or b).​ -Under this system,only revenue is recorded when sales are made.

Too much inventory on hand

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 merchandise sold,gross profit,and ending inventory under the FIFO method.

​ Match each description to the appropriate cost flow assumption (a-c). -Widely used for tax purposes

Applying the lower of cost or market to each item of inventory,what should the total inventory value be for the following items?​

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

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 merchandise sold and ending inventory using LIFO.

Based on the following information,compute (a)inventory turnover (b)average daily cost of merchandise sold using a 365-day year and (c)days' sales in inventory.Cost of merchandise sold $195,640Inventory:Beginning 20,500Ending 18,628

Match each description to the appropriate inventory system (a or b). -This system can be costly and time consuming if not computerized.

Match each description to the appropriate inventory system (a or b). -Under this system,only revenue is recorded when sales are made.

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 merchandise sold,gross profit,and ending inventory under the FIFO method.

Match each description to the appropriate cost flow assumption (a-c). -Widely used for tax purposes

Applying the lower of cost or market to each item of inventory,what should the total inventory value be for the following items?