Question 1

Inventory costing methods place primary emphasis on assumptions about

Accepted Answer

A) flow of goods 
B) flow of costs 
C) flow of goods or flow of costs depending on the method 
D) neither flow of goods or flow of costs 
A) flow of goods 
B) flow of costs 
C) flow of goods or flow of costs depending on the method 
D) neither flow of goods or flow of costs

Question 2

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 LIFO method.

Accepted Answer

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

Question 3

If a company uses the periodic inventory system to cost its inventory,the gross profit method is a method that can be used to check on theft when the actual inventory is taken by the company.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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

Accepted Answer

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

Question 6

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 Average Cost method.

Accepted Answer

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

Question 7

The specific identification inventory method should be used when the inventory consists of identical,low cost units that are purchased and sold frequently.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Safeguarding inventory and proper reporting of the inventory in the books are the reasons for controlling the inventory.

Accepted Answer

A) True 
 B)False

Question 10

Of the three widely used inventory costing methods (FIFO,LIFO,and average cost),the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Garrison Company uses the retail method of inventory costing.They started the year with an inventory that had a retail cost of $45,000.During the year they purchased an inventory with a retail cost of $300,000.After performing a physical inventory,they calculated their inventory cost at retail to be $80,000.The mark up is 100% of cost.Determine the ending inventory at its estimated cost.

Accepted Answer

A) $160,000 
B) $80,000 
C) $40,000 
D) $45,000 
A) $160,000 
B) $80,000 
C) $40,000 
D) $45,000

Question 13

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 14

The method of computing inventory that uses records of the selling prices of the merchandise is called

Accepted Answer

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

Question 15

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 16

When merchandise sold is assumed to be in the order in which the purchases were made,the company is using

Accepted Answer

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

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

When using a perpetual inventory system,the journal entry to record the cost of merchandise sold is:

Accepted Answer

A) debit Cost of Merchandise Sold;credit Sales 
B) debit Cost of Merchandise Sold;credit Merchandise Inventory 
C) debit Merchandise Inventory;credit Cost of Merchandise Sold 
D) No journal entry is made to record the cost of merchandise sold. 
A) debit Cost of Merchandise Sold;credit Sales 
B) debit Cost of Merchandise Sold;credit Merchandise Inventory 
C) debit Merchandise Inventory;credit Cost of Merchandise Sold 
D) No journal entry is made to record the cost of merchandise sold.

Question 19

Use the following information to answer the following questions.
The 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 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 20

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...

Inventory costing methods place primary emphasis on assumptions about

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 LIFO method.

If a company uses the periodic inventory system to cost its inventory,the gross profit method is a method that can be used to check on theft when the actual inventory is taken by the company.

Determine the total value of the merchandise using Net Realizable Value:

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

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 Average Cost method.

The specific identification inventory method should be used when the inventory consists of identical,low cost units that are purchased and sold frequently.

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

Safeguarding inventory and proper reporting of the inventory in the books are the reasons for controlling the inventory.

Of the three widely used inventory costing methods (FIFO,LIFO,and average cost),the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first.

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

The method of computing inventory that uses records of the selling prices of the merchandise is called

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.

When merchandise sold is assumed to be in the order in which the purchases were made,the company is using

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

When using a perpetual inventory system,the journal entry to record the cost of merchandise sold is:

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.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 6: Inventories

Inventory costing methods place primary emphasis on assumptions about

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 LIFO method.

If a company uses the periodic inventory system to cost its inventory,the gross profit method is a method that can be used to check on theft when the actual inventory is taken by the company.

Determine the total value of the merchandise using Net Realizable Value:

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

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 Average Cost method.

The specific identification inventory method should be used when the inventory consists of identical,low cost units that are purchased and sold frequently.

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

Safeguarding inventory and proper reporting of the inventory in the books are the reasons for controlling the inventory.

Of the three widely used inventory costing methods (FIFO,LIFO,and average cost),the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first.

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

The method of computing inventory that uses records of the selling prices of the merchandise is called

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.

When merchandise sold is assumed to be in the order in which the purchases were made,the company is using

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

When using a perpetual inventory system,the journal entry to record the cost of merchandise sold is:

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.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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