Question 1

What is Nu's net income if it elects LIFO?

Accepted Answer

A) $288. 
B) $144. 
C) $240. 
D) $480. 
A) $288. 
B) $144. 
C) $240. 
D) $480.

Question 2

ATC's inventory turnover ratio for 2016 is:

Accepted Answer

A) 2.42. 
B) 2.76. 
C) 3.21. 
D) None of the above is correct. 
A) 2.42. 
B) 2.76. 
C) 3.21. 
D) None of the above is correct.

Question 3

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Random Creations uses LIFO and a periodic inventory system.

Accepted Answer

The answer of Required: Compute the January 31 ending inventory...

Question 4

The inventories disclosure note in the 2014 financial statements for SUPERVALU Inc. ,one of the largest grocery chains in the United States,included the following ($ in millions):
"Inventories are valued at the lower of cost or market.Substantially all of the Company's inventory consists of finished goods.As of February 22,2014 and February 23,2013,approximately 57 percent and 60 percent,respectively,of the Company's inventories were valued under the LIFO method.If the FIFO method had been used to determine cost of inventories for which the LIFO method is used,the Company's inventories would have been higher by approximately $202 and $211 as of February 22,2014 and February 23,2013,respectively."
Cost of goods sold for the fiscal year ended February 22,2014 was $14,623 million.
Required:
If SUPERVALU had used FIFO for all of its LIFO inventories,what would its cost of goods sold have been for 2014?

Accepted Answer

Cost of goods sold for 2014 would have b

Question 5

GG Inc.uses LIFO.GG disclosed that if FIFO had been used,inventory at the end of 2016 would have been $15 million higher than the difference between LIFO and FIFO at the end of 2015.Assuming GG has a 40% income tax rate:

Accepted Answer

A) Its reported cost of goods sold for 2016 would have been $9 million higher if it had used FIFO rather than LIFO for its financial statements. 
B) Its reported cost of goods sold for 2016 would have been $15 million higher if it had used FIFO rather than LIFO for its financial statements. 
C) Its reported net income for 2016 would have been $9 million higher if it had used FIFO rather than LIFO for its financial statements. 
D) Its reported net income for 2016 would have been $15 million higher if it had used FIFO rather than LIFO for its financial statements. 
A) Its reported cost of goods sold for 2016 would have been $9 million higher if it had used FIFO rather than LIFO for its financial statements. 
B) Its reported cost of goods sold for 2016 would have been $15 million higher if it had used FIFO rather than LIFO for its financial statements. 
C) Its reported net income for 2016 would have been $9 million higher if it had used FIFO rather than LIFO for its financial statements. 
D) Its reported net income for 2016 would have been $15 million higher if it had used FIFO rather than LIFO for its financial statements.

Question 6

Appleton Inc.adopted dollar-value LIFO on January 1,2016,when the inventory value was $1,200,000.The December 31,2016,ending inventory at year-end costs was $1,430,000 and the cost index for the year is 1.1.
Required:
Compute the dollar-value LIFO inventory valuation for the December 31,2016,inventory.

Accepted Answer

The answer of Appleton Inc.adopted dollar-value LIFO on January 1,2016,when...

Question 7

The Genworth Company adopted the dollar-value LIFO method on January 1,2016 when the inventory value of its one inventory pool was $450,000.The company decided to use an external index,the Consumer Price Index (CPI),to adjust for changes in the cost level.On January 1,2016,the CPI was 280.On December 31,2016,inventory valued at year-end cost was $504,000 and the CPI was 294.
Required:
Calculate the inventory value at the end of 2016 using the dollar-value LIFO method.

Accepted Answer

The answer of The Genworth Company adopted the dollar-value LIFO...

Question 8

In a periodic inventory system,the cost of purchases is debited to:

Accepted Answer

A) Purchases. 
B) Cost of goods sold. 
C) Inventory. 
D) Accounts payable. 
A) Purchases. 
B) Cost of goods sold. 
C) Inventory. 
D) Accounts payable.

Question 9

Net purchases are reduced for discounts taken whether the net method is used or the gross method is used.

Accepted Answer

A) True 
 B)False

Question 10

The use of LIFO in accounting for a firm's inventory:

Accepted Answer

A) Usually matches the physical flow of goods through the business. 
B) Is usually used for internal management purposes. 
C) Usually provides a better match of expenses with revenues. 
D) None of these answer choices is correct. 
A) Usually matches the physical flow of goods through the business. 
B) Is usually used for internal management purposes. 
C) Usually provides a better match of expenses with revenues. 
D) None of these answer choices is correct.

Question 11

Shipping charges on outgoing goods are included in either cost of goods sold or selling expenses.

Accepted Answer

A) True 
 B)False

Question 12

The use of LIFO during a long inflationary period can result in:

Accepted Answer

A) A net increase in income tax expense. 
B) An inflated balance sheet. 
C) Significant cash flow advantages over FIFO. 
D) A reduction in inventory turnover over FIFO. 
A) A net increase in income tax expense. 
B) An inflated balance sheet. 
C) Significant cash flow advantages over FIFO. 
D) A reduction in inventory turnover over FIFO.

Question 13

On January 1,2016,the National Furniture Company adopted the dollar-value LIFO method of computing inventory.An internal cost index is used to convert ending inventory to base year.Inventory on January 1 was $200,000.Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:   
Required:
Compute inventory amounts at the end of each year.

Accepted Answer

The answer of On January 1,2016,the National Furniture Company adopted...

Question 14

Inventory costing methods are merely means by which costs are allocated between ending inventory and cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 15

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2016.  Missing information has been left blank.
-Required:  Compute the missing amounts.

Accepted Answer

The answer of The following information is taken from the...

Question 16

Liquidated Corporation had a dollar-value LIFO (DVL)inventory of $800,000 at the beginning of the current year when it adopted DVL.Its year-end inventory at year-end prices was $850,000.The index for the current year was 1.08.
Required:
Compute the DVL inventory (rounded)to be reported at the end of the year.

Accepted Answer

DVL with a LIFO Liqu

Question 17

Cost of goods on consignment is included in the consignee's inventory until sold.

Accepted Answer

A) True 
 B)False

Question 18

In a period when costs are rising and inventory quantities are stable,the inventory method that would result in the highest ending inventory is:

Accepted Answer

A) Weighted average. 
B) Moving average. 
C) FIFO. 
D) LIFO. 
A) Weighted average. 
B) Moving average. 
C) FIFO. 
D) LIFO.

Question 19

Briefly explain when there would be a tax benefit from electing LIFO rather than FIFO.

Accepted Answer

In periods of rising costs,LIFO provides

Question 20

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Denver uses LIFO and a perpetual inventory system.

Accepted Answer

The answer of Required: Compute the January 31 ending inventory...

What is Nu's net income if it elects LIFO?

ATC's inventory turnover ratio for 2016 is:

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Random Creations uses LIFO and a periodic inventory system.

GG Inc.uses LIFO.GG disclosed that if FIFO had been used,inventory at the end of 2016 would have been $15 million higher than the difference between LIFO and FIFO at the end of 2015.Assuming GG has a 40% income tax rate:

In a periodic inventory system,the cost of purchases is debited to:

Net purchases are reduced for discounts taken whether the net method is used or the gross method is used.

The use of LIFO in accounting for a firm's inventory:

Shipping charges on outgoing goods are included in either cost of goods sold or selling expenses.

The use of LIFO during a long inflationary period can result in:

Inventory costing methods are merely means by which costs are allocated between ending inventory and cost of goods sold.

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2016. Missing information has been left blank. -Required: Compute the missing amounts.

Cost of goods on consignment is included in the consignee's inventory until sold.

In a period when costs are rising and inventory quantities are stable,the inventory method that would result in the highest ending inventory is:

Briefly explain when there would be a tax benefit from electing LIFO rather than FIFO.

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Denver uses LIFO and a perpetual inventory system.

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters

Exam 8: Inventories: Measurement

What is Nu's net income if it elects LIFO?

ATC's inventory turnover ratio for 2016 is:

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Random Creations uses LIFO and a periodic inventory system.

GG Inc.uses LIFO.GG disclosed that if FIFO had been used,inventory at the end of 2016 would have been $15 million higher than the difference between LIFO and FIFO at the end of 2015.Assuming GG has a 40% income tax rate:

In a periodic inventory system,the cost of purchases is debited to:

Net purchases are reduced for discounts taken whether the net method is used or the gross method is used.

The use of LIFO in accounting for a firm's inventory:

Shipping charges on outgoing goods are included in either cost of goods sold or selling expenses.

The use of LIFO during a long inflationary period can result in:

Inventory costing methods are merely means by which costs are allocated between ending inventory and cost of goods sold.

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2016. Missing information has been left blank. -Required: Compute the missing amounts.

Cost of goods on consignment is included in the consignee's inventory until sold.

In a period when costs are rising and inventory quantities are stable,the inventory method that would result in the highest ending inventory is:

Briefly explain when there would be a tax benefit from electing LIFO rather than FIFO.

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Denver uses LIFO and a perpetual inventory system.

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters