Question 1

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 2

The inventory costing method that reports the most current prices in ending inventory is

Accepted Answer

A)  FIFO 
B)  Specific identification 
C)  LIFO 
D)  Average cost 
A)  FIFO 
B)  Specific identification 
C)  LIFO 
D)  Average cost

Question 3

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 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 4

The three identical units of Product Basic H are purchased during July, as shown below.
   Assume one unit sells on July 28 for $45.
Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using (a) first in first out, (b) last in last out, (c) average cost flow methods.

Accepted Answer

The answer of The three identical units of Product Basic...

Question 5

Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and owner's equity?

Accepted Answer

A)  net income is overstated, assets are overstated, owner's equity is understated 
B)  net income is overstated, assets are overstated, owner's equity is overstated 
C)  net income is understated, assets are understated, owner's equity is understated 
D)  net income is understated, assets are understated, owner's equity is overstated 
A)  net income is overstated, assets are overstated, owner's equity is understated 
B)  net income is overstated, assets are overstated, owner's equity is overstated 
C)  net income is understated, assets are understated, owner's equity is understated 
D)  net income is understated, assets are understated, owner's equity is overstated

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

The inventory costing method that reports the most current prices in ending inventory is

The three identical units of Product Basic H are purchased during July, as shown below. Assume one unit sells on July 28 for $45. Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using (a) first in first out, (b) last in last out, (c) average cost flow methods.

Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and owner's equity?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

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

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Filters

Exam 7: Inventories

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

The inventory costing method that reports the most current prices in ending inventory is

The three identical units of Product Basic H are purchased during July, as shown below. Assume one unit sells on July 28 for $45. Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using (a) first in first out, (b) last in last out, (c) average cost flow methods.

Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and owner's equity?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

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

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Filters