Question 1

The annual inventory of Great Stuff Emporium shows the following information for refrigerators:  If 586 refrigerators were on hand on December 31, what is the value of the ending inventory using the LIFO method of inventory pricing?

Accepted Answer

The answer of The annual inventory of Great Stuff Emporium...

Question 2

During the past year, Kool Kats Inc. sold 829 pet bandanas. Inventory records for the year are as follows:  Using the LIFO method of inventory pricing, calculate the dollar value of the ending inventory.

Accepted Answer

A)  $13,944.00 
B)  $10,831.00 
C)  $15,294.00 
D)  $19,356.00

Question 3

Calculate the total number of units available for sale and the cost of goods available for sale from the inventory of peat moss for D.J.'s Nurseries: $\begin{array}{llcc}
  \text { D.J.'s Nurseries } &  \
 \text {Peat Moss Inventory  } &\
\end{array}$

$\begin{array}{llll}
\text { Date } & \text { Units } & \text { Cost per Unit } & \text { Total Cost } \
\hline \text { Beginning Inventory, January } 1 & 200 & \$ 11.46 \
\text { Purchase, March } 10 & 160 & \$ 11.70 \
\text { Purchase, May 16 } & 180 & \$ 12.10 \
\text { Purchase, October } 8 & 250 & \$ 12.50 \
\text { Purchase, December 6 } & 150 & \$ 12.40
\end{array}$  
A)Total units available: _______
B)Cost of goods available for sale: _______

Accepted Answer

The answer of Calculate the total number of units available...

Question 4

The annual inventory of The Bike Shop Inc. shows the following information for mountain bikes:  If 36 mountain bikes were on hand on December 31, what is the value of the ending inventory using the LIFO method of inventory pricing?

Accepted Answer

A)  $4,536 
B)  $3,992 
C)  $6,536 
D)  $2,720

Question 5

An inventory valuation method that assumes the items purchased by a company last are the first items to be sold is called the perpetual valuation method.​

Accepted Answer

A) True 
 B)False

Question 6

Inventory is defined as the goods that a company has in its possession at any given time. ​

Accepted Answer

A) True 
 B)False

Question 7

Like New Express had 400 multi-function centers machines in stock at the end of the year. Inventory records for the year are as follows:  Using the average cost method of inventory pricing calculate the dollar value of the ending inventory.

Accepted Answer

A)  $69,200.00 
B)  $79,200.00 
C)  $77,547.00 
D)  $85,650.00

Question 8

The average inventory at retail for Flying Fishes Inc. was $260,510. The turnover rate at retail was 5.1, based on net sales of $1,328,600. The published inventory turnover at retail is 7. Since the actual turnover rate is less than the published rate, find the target average inventory at retail.(Round your answer to the nearest dollar)

Accepted Answer

A)  $357,563 
B)  $260,510 
C)  $189,800 
D)  $450,310

Question 9

Northern Industries had sales of $428,000 in the month of May. Use the retail method to estimate the value of the inventory as of May 31 given the following financial information: (Round cost ratio to four decimal places) $\begin{array}{llcc}
  \text { Northern Industries } &  \ 
 \text {Financial Highlights  } &\
 \text {May 1-May 31 } &\ 
\end{array}$
$\begin{array}{|lll|} 
\hline  & \text { Cost } & \text { Retail } \
\hline \text { Beginning Inventory } & \$ 434,719& \$585,100\
\text { Net Purchases (January) } & 148,9211 & 170,900 \
\text { Total avalable for sale } & & \
\hline
\end{array}$

Accepted Answer

A)  $328,199 
B)  $230,435 
C)  $253,216 
D)  $456,812

Question 10

The current inventory turnover at retail for Jennifer's Lingerie is 3.8, based on net sales of $3,270,490. The published inventory turnover at retail is 5.2. Since the actual turnover rate is less than the published rate, find the target average inventory at retail.

Accepted Answer

The answer of The current inventory turnover at retail for...

Question 11

Find the value of the following inventory for TV City Inc. using the lower-of-cost-or-market rule. $$\begin{array} { l l l l l l } 
\text { Item } & \text { Quantity } & \text { Cost } & \text { Market } & \text { Basis } & \text { Amount } \
\text { Portables } & 202 & \$ 2,611 & \$ 2,684 & & \
\text { Combo HD Players } & 203 & 1,784 & 1,682 & \
\text { Projection } & 318 & 1,356 & 1,212 & \
\text { High-definition } & 216 & 1,339 & 1,157 & \
\text { Plasma } & 360 & 1,416 & 936 & \
\hline
\end{array}$$

Accepted Answer

A)  $1,841,156 
B)  $2,224,339 
C)  $3,563,997 
D)  $1,212,367

Question 12

The retail method of inventory estimation uses a comparison of goods available for sale at a cost and at retail.

Accepted Answer

A) True 
 B)False

Question 13

During the last year Leathers Unlimited sold 702 jackets. Inventory records for the year are as follows:  Using the average cost method of inventory pricing calculate the dollar value of the ending inventory.(Round the average cost per unit to the nearest cent)

Accepted Answer

The answer of During the last year Leathers Unlimited sold...

Question 14

Goods purchased and held for resale are commonly known as ____________________.

Accepted Answer

The answer of Goods purchased and held for resale are...

Question 15

​In the FIFO inventory method, it is assumed that the items purchased first are the first ones to be sold.

Accepted Answer

A) True 
 B)False

Question 16

Bigg Stores had net sales of $254,700 for July. They maintain a gross margin of 56% on sales, and estimate their ending inventory for July to be $78,400. What is the amount of goods available for sale?

Accepted Answer

The answer of Bigg Stores had net sales of $254,700...

Question 17

Save-Mor Merchandisers had net sales of $422,300 for the year. If the beginning inventory at retail was $250,900 and the ending inventory at retail was $171,400, find the inventory turnover at retail. (Round your answer to the nearest tenth)

Accepted Answer

A)  2.0 Times 
B)  1.7 Times 
C)  2.5 Times 
D)  1.5 Times

Question 18

Narrative 16-1
Use the information below for the following problems:
The following is the inventory for the year for Better Products, Inc.:
$$\begin{array} { l l l l } 
\text { Date } & \text { Units } & \text { Cost per unit } & \text { Total Cost } \
\hline \text { Beginning inventory, Jan. 1 } & 50 & \$ 85.26 & 4,263 \
\text { Purchase, April 15 } & 200 & 92.50 & 18,500 \
\text { Purchase, September 20 } & 140 & 91.50 & 12,810 \
\text { Purchase, December 15 } & 30 & 98.60 & 2,958 \
\hline \text { Total Units Available } & 420 & & \$ 38,531
\end{array}$$
-Refer to Narrative in your text 16-1. Using the Better Products inventory chart, what is the dollar value of the ending inventory on December 31, if Better Products used the LIFO method of valuing their ending inventory of 105 units?

Accepted Answer

The answer of Narrative 16-1
Use the information below for the...

Question 19

Grande Market had net sales of $339,900 for July. They maintain a gross margin of 48% on sales, and estimate their ending inventory for July to be $96,000. What is the amount of goods available for sale?

Accepted Answer

The answer of Grande Market had net sales of $339,900...

Question 20

The After Five Boutique took in $825,200 in sales during May. They started the month with inventory worth $524,000 and spent $225,500 on new purchases during the month. Gross margin on sales was 30%. Using the gross profit method, estimate the cost value of the inventory at the end of June.

Accepted Answer

A)  $295,100 
B)  $345,625 
C)  $171,860 
D)  $454,250

Exam 16: Inventory

The annual inventory of Great Stuff Emporium shows the following information for refrigerators: If 586 refrigerators were on hand on December 31, what is the value of the ending inventory using the LIFO method of inventory pricing?

During the past year, Kool Kats Inc. sold 829 pet bandanas. Inventory records for the year are as follows: Using the LIFO method of inventory pricing, calculate the dollar value of the ending inventory.

The annual inventory of The Bike Shop Inc. shows the following information for mountain bikes: If 36 mountain bikes were on hand on December 31, what is the value of the ending inventory using the LIFO method of inventory pricing?

An inventory valuation method that assumes the items purchased by a company last are the first items to be sold is called the perpetual valuation method.​

Inventory is defined as the goods that a company has in its possession at any given time. ​

Like New Express had 400 multi-function centers machines in stock at the end of the year. Inventory records for the year are as follows: Using the average cost method of inventory pricing calculate the dollar value of the ending inventory.

The current inventory turnover at retail for Jennifer's Lingerie is 3.8, based on net sales of $3,270,490. The published inventory turnover at retail is 5.2. Since the actual turnover rate is less than the published rate, find the target average inventory at retail.

The retail method of inventory estimation uses a comparison of goods available for sale at a cost and at retail.

During the last year Leathers Unlimited sold 702 jackets. Inventory records for the year are as follows: Using the average cost method of inventory pricing calculate the dollar value of the ending inventory.(Round the average cost per unit to the nearest cent)

Goods purchased and held for resale are commonly known as ____________________.

​In the FIFO inventory method, it is assumed that the items purchased first are the first ones to be sold.

Bigg Stores had net sales of $254,700 for July. They maintain a gross margin of 56% on sales, and estimate their ending inventory for July to be $78,400. What is the amount of goods available for sale?

Save-Mor Merchandisers had net sales of $422,300 for the year. If the beginning inventory at retail was $250,900 and the ending inventory at retail was $171,400, find the inventory turnover at retail. (Round your answer to the nearest tenth)

Grande Market had net sales of $339,900 for July. They maintain a gross margin of 48% on sales, and estimate their ending inventory for July to be $96,000. What is the amount of goods available for sale?

The After Five Boutique took in $825,200 in sales during May. They started the month with inventory worth $524,000 and spent $225,500 on new purchases during the month. Gross margin on sales was 30%. Using the gross profit method, estimate the cost value of the inventory at the end of June.

An inventory valuation method that assumes the items purchased by a company last are the first items to be sold is called the perpetual valuation method.

Inventory is defined as the goods that a company has in its possession at any given time.

In the FIFO inventory method, it is assumed that the items purchased first are the first ones to be sold.