Arizona sells toys.At the beginning of April 100 trains 168H were on hand for which the firm had paid $10 each.Purchases and sales for the month were: $\begin{array}{rll}\text { Date }&\text {Purchases}&\text { Unit Cost }&\text {Sales }\\&\text { units }&\text { units }\\ \text { Apri1 3 } & 120 & \$ 11 \\ 10 & 150 & \$ 12 \\ 29 &&&180 \end{array}$ If Arizona uses a periodic system with a LIFO cost flow assumption April's cost of sales for the 168H trains is:

A) $2130 B) $2160 C) $2020 D) $1880 A) $2130 B) $2160 C) $2020 D) $1880

This is an extract from an income statement: $\begin{array}{lr}&\$\\ \text { Beginning inventory } & 10000 \\ \text { Gross sales } & 32000 \\ \text { Freight-in } & 2000 \\ \text { Sales reburns } & 2000 \\ \text { Ending inventory } & 12200 \\ \text { Purchases } & 18200 \end{array}$ The cost of sales is:

A) $14 000 B) $12 200 C) $18 000 D) $17 000 A) $14 000 B) $12 200 C) $18 000 D) $17 000

Florida Inc uses a periodic inventory system with the weighted average method of cost assignment.The following data are available: $\begin{array}{lllll}&&&& \text { Total }\\ &\text { Date }&\text { Units }&\text { Unit Cost }&\text { Cost }\\ \text { Beginning Inventory } & \text { Jan 1 } & 2000 & \$ 6 & \$ 12000 \\ \text { Purchase } & \text { Mar 13 } & 4000 & \$ 7 & \$ 28000 \\ \text { Purchase } & \text { June 20 } & 6000 & \$ 8 & \$ 48000 \\ \text { Ending Inv entory } & \text { Dec } 31 & 1000 & & \end{array}$ The cost of the ending inventory to the nearest dollar is:

A) $8333 B) $8000 C) $7300 D) $6000 A) $8333 B) $8000 C) $7300 D) $6000

These are the purchases and sales of Commodity C during the month of August.A perpetual inventory system is used. Balance on hand 1 August: 10 units $@ \$ 10$ each. Purchases: $\begin{array}{lr} \text { Aug 3 } & 10 \text { units } @ \$ 12 \\ \text { Aug 12 } & 6 \text { units } \$ 13 \\ \text { Aug 25 } & 12 \text { units } @ \$ 10 \end{array}$ Sales: Aug $7 \quad 14$ units Aug $27 \quad 10$ units The value of the stock of Commodity C at 31 August using the FIFO method of costing inventory is:

A) $140 B) $146 C) $168 D) $182 A) $140 B) $146 C) $168 D) $182

Exam 19: Inventories

Arizona sells toys.At the beginning of April 100 trains 168H were on hand for which the firm had paid $10 each.Purchases and sales for the month were: Date Purchases Unit Cost Sales units units Apri1 3 120 \ 11 10 150 \ 12 29 180 If Arizona uses a periodic system with a LIFO cost flow assumption April's cost of sales for the 168H trains is:

(Multiple Choice)

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Question 21

Dupont Ltd uses a periodic inventory system with the specific identification method of cost assignment. $\begin{array}{lrrr}&\text { Date }&\text {Units }&\text {Unit Cost \$}\\\text { Beginning Inventory } & \text { July 1 } & 1000 & 10 \\\text { Purchase } & 10 & 2000 & 11 \\\text { Purchase } & 20 & 1000 & 13\end{array}$ On 25 July 500 units from beginning inventory and 1500 units from the 10 July purchase were sold.What was the value of ending inventory at 31 July?

(Multiple Choice)

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Question 22

This is an extract from an income statement: \ Beginning inventory 10000 Gross sales 32000 Freight-in 2000 Sales reburns 2000 Ending inventory 12200 Purchases 18200 The cost of sales is:

(Multiple Choice)

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Question 23

At 31 December 2012,the end of their accounting year,the Black Sheep Wool Cooperative understated ending inventory by $3,000.The profit for 2012 will be:

(Multiple Choice)

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Question 24

The two types of systems for recording inventory are the perpetual and the p________________ systems.

(Short Answer)

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Question 25

Which of these is not a possible source of error in calculating closing inventory?

(Multiple Choice)

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Question 26

Two methods that can be used for estimating the value of unsold inventory,without taking a physical inventory count,are the retail inventory method and the g___ p_ method.

(Short Answer)

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Question 27

The accounting standards governing determination of the cost of inventories are:

(Multiple Choice)

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Question 28

Mikey uses a periodic inventory system and committed an error that understated inventory at the end of Year One.If no further errors occur,at the end of Year Two:

(Multiple Choice)

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Question 29

With the perpetual method of accounting for inventory the costing assumption,such as first-in first-out,is applied to:

(Multiple Choice)

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Question 30

Moon uses a periodic inventory system with the last-in first-out method of cost assignment.The following data are available: $\begin{array}{ccc}\text { Date }& \text { Units Unit }& \text { Cost \$}\\\text { Jan } 6 \text { Beginning inventory } & 1000 & 10 \\15 \text { Purchase } & 2000 & 11 \\26 \text { Purchase } & 1000 & 12\\& 4000 \\31 \text { Sale } & 1000&20\\\text { Closing inventory }&3000\end{array}$ What is the value of closing inventory at 31 January?

(Multiple Choice)

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Question 31

Won Inc has an historical gross profit percentage of 35%.Net purchases for six months were $1 400 and sales were $2 000.Inventory at the end of the previous period was $200.If Won Inc prepares an interim balance sheet the amount that can be estimated for closing inventory is:

(Multiple Choice)

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Question 32

The lower of cost or net realisable value procedure is used with: i.Weighted average ii.FIFO iii.The perpetual method

(Multiple Choice)

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Question 33

The essence of the p______________ method of accounting for inventory is that all movements in each item of stock are tracked via detailed inventory records.

(Short Answer)

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Question 34

Florida Inc uses a periodic inventory system with the weighted average method of cost assignment.The following data are available: Total Date Units Unit Cost Cost Beginning Inventory Jan 1 2000 \ 6 \ 12000 Purchase Mar 13 4000 \ 7 \ 28000 Purchase June 20 6000 \ 8 \ 48000 Ending Inv entory Dec 31 1000 The cost of the ending inventory to the nearest dollar is:

(Multiple Choice)

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Question 35

These are the purchases and sales of Commodity C during the month of August.A perpetual inventory system is used. Balance on hand 1 August: 10 units $@ \$ 10$ each. Purchases: Aug 3 10 units @\ 12 Aug 12 6 units \ 13 Aug 25 12 units @\ 10 Sales: Aug $7 \quad 14$ units Aug $27 \quad 10$ units The value of the stock of Commodity C at 31 August using the FIFO method of costing inventory is:

(Multiple Choice)

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Question 36

A manufacturer would normally classify inventories into the three categories: raw materials,work in process and f_________ goods.

(Short Answer)

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Question 37

Assuming rising prices which statement is correct?

(Multiple Choice)

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Question 38

F________________ is a cost flow assumption that assumes the first goods purchased are the first goods sold.

(Short Answer)

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Question 39

All of these statements about the presentation of inventory in financial reports are correct except:

(Multiple Choice)

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Question 40

This is an extract from an income statement: \ Beginning inventory 10000 Gross sales 32000 Freight-in 2000 Sales reburns 2000 Ending inventory 12200 Purchases 18200 The cost of sales is:

At 31 December 2012,the end of their accounting year,the Black Sheep Wool Cooperative understated ending inventory by $3,000.The profit for 2012 will be:

The two types of systems for recording inventory are the perpetual and the p________________ systems.

Which of these is not a possible source of error in calculating closing inventory?

Two methods that can be used for estimating the value of unsold inventory,without taking a physical inventory count,are the retail inventory method and the g___ p_ method.

The accounting standards governing determination of the cost of inventories are:

Mikey uses a periodic inventory system and committed an error that understated inventory at the end of Year One.If no further errors occur,at the end of Year Two:

With the perpetual method of accounting for inventory the costing assumption,such as first-in first-out,is applied to:

Won Inc has an historical gross profit percentage of 35%.Net purchases for six months were $1 400 and sales were $2 000.Inventory at the end of the previous period was $200.If Won Inc prepares an interim balance sheet the amount that can be estimated for closing inventory is:

The lower of cost or net realisable value procedure is used with: i.Weighted average ii.FIFO iii.The perpetual method

The essence of the p______________ method of accounting for inventory is that all movements in each item of stock are tracked via detailed inventory records.

A manufacturer would normally classify inventories into the three categories: raw materials,work in process and f_________ goods.

Assuming rising prices which statement is correct?

F________________ is a cost flow assumption that assumes the first goods purchased are the first goods sold.

All of these statements about the presentation of inventory in financial reports are correct except:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Internal Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis,profitability Analysis and Capital Budgeting

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Liabilities

Analysis and Interpretation of Financial Statements

Filters

Exam 19: Inventories

This is an extract from an income statement: \ Beginning inventory 10000 Gross sales 32000 Freight-in 2000 Sales reburns 2000 Ending inventory 12200 Purchases 18200 The cost of sales is:

At 31 December 2012,the end of their accounting year,the Black Sheep Wool Cooperative understated ending inventory by $3,000.The profit for 2012 will be:

The two types of systems for recording inventory are the perpetual and the p________________ systems.

Which of these is not a possible source of error in calculating closing inventory?

Two methods that can be used for estimating the value of unsold inventory,without taking a physical inventory count,are the retail inventory method and the g___________ p_________ method.

The accounting standards governing determination of the cost of inventories are:

Mikey uses a periodic inventory system and committed an error that understated inventory at the end of Year One.If no further errors occur,at the end of Year Two:

With the perpetual method of accounting for inventory the costing assumption,such as first-in first-out,is applied to:

Won Inc has an historical gross profit percentage of 35%.Net purchases for six months were $1 400 and sales were $2 000.Inventory at the end of the previous period was $200.If Won Inc prepares an interim balance sheet the amount that can be estimated for closing inventory is:

The lower of cost or net realisable value procedure is used with: i.Weighted average ii.FIFO iii.The perpetual method

The essence of the p______________ method of accounting for inventory is that all movements in each item of stock are tracked via detailed inventory records.

A manufacturer would normally classify inventories into the three categories: raw materials,work in process and f_________ goods.

Assuming rising prices which statement is correct?

F________________ is a cost flow assumption that assumes the first goods purchased are the first goods sold.

All of these statements about the presentation of inventory in financial reports are correct except:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Internal Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis,profitability Analysis and Capital Budgeting

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Liabilities

Analysis and Interpretation of Financial Statements

Filters

Two methods that can be used for estimating the value of unsold inventory,without taking a physical inventory count,are the retail inventory method and the g___ p_ method.