Question 1

In applying the LCM rule, the inventory of rehab equipment would be valued at:

Accepted Answer

A) $315. 
B) $247. 
C) $150. 
D) $235.$235 designated market value is less than $250 cost. 
A) $315. 
B) $247. 
C) $150. 
D) $235.$235 designated market value is less than $250 cost.

Question 2

Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to classes of trees.

Accepted Answer

The answer of Required: Determine the balance sheet inventory carrying...

Question 3

Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to individual types of feeds.

Accepted Answer

The answer of Required: Determine the balance sheet inventory carrying...

Question 4

The average cost-to-retail percentage is:

Accepted Answer

A) 74.5%. 
B) 55.6%. 
C) 57.4%. 
D) 58.7%.55.6%
Cost-to-retail percentage = $155,000 $279,000 = 55.6% 
A) 74.5%. 
B) 55.6%. 
C) 57.4%. 
D) 58.7%.55.6%
Cost-to-retail percentage = $155,000 $279,000 = 55.6%

Question 5

Losses on reduction to LCM may be charged to either cost of goods sold or to a current loss account without distorting financial statement ratios.

Accepted Answer

A) True 
 B)False

Question 6

Cloverdale, Inc. uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations: What amount should be reported as cost of goods sold for the year?

Accepted Answer

A) $273,600. 
B) $272,861. 
C) $275,000. 
D) None of these. 
A) $273,600. 
B) $272,861. 
C) $275,000. 
D) None of these.

Question 7

When computing the cost-to-retail percentage for the conventional retail method, included in the denominator are:

Accepted Answer

A) Net markups and net markdowns. 
B) Neither net markups nor net markdowns. 
C) Net markups, but not net markdowns. 
D) Net markdowns, but not net markups. 
A) Net markups and net markdowns. 
B) Neither net markups nor net markdowns. 
C) Net markups, but not net markdowns. 
D) Net markdowns, but not net markups.

Question 8

Inventory written down due to LCM may be written back up if market values go back up.

Accepted Answer

A) True 
 B)False

Question 9

Billingsly Products uses the conventional retail method to estimate its ending inventories. The following data has been summarized for the year 2009:
Required:
Estimate the ending inventory as of December 31, 2009.
 $$\begin{array} { l c r } 
& \text { Cost } & \text { Retail } \
\text { Inventory, January 1 } & \$ 53,000 & \$ 78,000 \
\text { Purchases } & 322,360 & 466,000 \
\text { Net markups } & & 8,000 \
\text { Net markdowns } & & 16,700 \
\text { Net sales } & & 392,000
\end{array}$$

Accepted Answer

The answer of Billingsly Products uses the conventional retail method...

Question 10

In using the LIFO retail method, the current period cost-to-retail percentage includes both net markdowns and net markups.

Accepted Answer

A) True 
 B)False

Question 11

An argument against the use of LCM is its lack of:

Accepted Answer

A) Relevance. 
B) Reliability. 
C) Consistency. 
D) Objectivity. 
A) Relevance. 
B) Reliability. 
C) Consistency. 
D) Objectivity.

Question 12

In the year 2009, the internal auditors of Goofy Co. discovered that goods costing $25 million that were purchased in December of 2008 were recorded for $20 million. The goods were properly measured in the 12/31/08 ending physical inventory.
Required:
Prepare the journal entry needed in 2009 to correct the error. Also, briefly describe any other measures Goofy would take in connection with correcting the error. (Ignore income taxes.)

Accepted Answer

F1F1F1S1F1F1F10 The 2008 financial stat

In applying the LCM rule, the inventory of rehab equipment would be valued at:

Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to classes of trees.

Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to individual types of feeds.

The average cost-to-retail percentage is:

Losses on reduction to LCM may be charged to either cost of goods sold or to a current loss account without distorting financial statement ratios.

Cloverdale, Inc. uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations: What amount should be reported as cost of goods sold for the year?

When computing the cost-to-retail percentage for the conventional retail method, included in the denominator are:

Inventory written down due to LCM may be written back up if market values go back up.

In using the LIFO retail method, the current period cost-to-retail percentage includes both net markdowns and net markups.

An argument against the use of LCM is its lack of:

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement and Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Operational Assets: Acquisition and Disposition

Operational 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

Appendix a Derivatives

Filters

Exam 9: Inventories: Additional Issues

In applying the LCM rule, the inventory of rehab equipment would be valued at:

Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to classes of trees.

Required: Determine the balance sheet inventory carrying value assuming the LCM rule is applied to individual types of feeds.

The average cost-to-retail percentage is:

Losses on reduction to LCM may be charged to either cost of goods sold or to a current loss account without distorting financial statement ratios.

Cloverdale, Inc. uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations: What amount should be reported as cost of goods sold for the year?

When computing the cost-to-retail percentage for the conventional retail method, included in the denominator are:

Inventory written down due to LCM may be written back up if market values go back up.

In using the LIFO retail method, the current period cost-to-retail percentage includes both net markdowns and net markups.

An argument against the use of LCM is its lack of:

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement and Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Operational Assets: Acquisition and Disposition

Operational 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

Appendix a Derivatives

Filters