Exam 8: Inventories: Measurement

Company C is identical to Company D in every respect except that Company C uses LIFO and Company D uses average costs.In an extended period of rising inventory costs,Company C's gross profit and inventory turnover ratio,compared to Company D's,would be:

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

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

Company A is identical to Company B in every regard except that Company A uses FIFO and Company B uses LIFO.In an extended period of rising inventory costs,Company A's gross profit and inventory turnover ratio,compared to Company B's,would be:

Dollar-value LIFO eliminates the risk of LIFO liquidations.

The ending inventory assuming FIFO is:

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.

What is Nueva's gross profit ratio (rounded)if it elects FIFO?

Tiger Inc.adopted dollar-value LIFO on January 1,2016,when the inventory value was $360,000 and the cost index was 1.25.On December 31,2016,the inventory was valued at year-end cost of $395,000 and the cost index was 1.30.Tiger would report a LIFO inventory of:

Ramen Inc.adopted dollar-value LIFO (DVL)as of January 1,2016,when it had a cost inventory of $600,000.Its inventory as of December 31,2016,was $667,800 at year-end costs and the cost index was 1.06.What was DVL inventory on December 31,2016?

During periods when costs are rising and inventory quantities are stable,ending inventory will be:

Bond Company adopted the dollar-value LIFO inventory method on January 1,2016.In applying the LIFO method,Bond uses internal cost indexes and the multiple-pools approach.The following data were available for Inventory Pool No.3 for the two years following the adoption of LIFO: Under the dollar-value LIFO method,the inventory at December 31,2017,should be

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

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

Thompson's 2016 inventory turnover ratio is:

Assuming Northwest uses the gross method to record purchases,what is the cost of goods available for sale?

Under the gross method,purchase discounts taken are:

Briefly explain the advantages of dollar-value LIFO (DVL).

Using the gross method,purchase discounts lost are:

Udon Inc.adopted dollar-value LIFO (DVL)as of January 1,2016,when it had an inventory of $700,000.Its inventory as of December 31,2016,was $777,000 at year-end costs and the cost index was 1.05.What was DVL inventory on December 31,2016?