Question 1

Cost of goods sold is equal to cost of goods available for sale:

Accepted Answer

A)  Plus cost of ending inventory 
B)  Minus cost of ending inventory 
C)  Divided by cost of ending inventory 
D)  Multiplied by cost of ending inventory 
E)  None of these 
A)  Plus cost of ending inventory 
B)  Minus cost of ending inventory 
C)  Divided by cost of ending inventory 
D)  Multiplied by cost of ending inventory 
E)  None of these

Question 2

Overhead expense can be allocated to particular departments.

Accepted Answer

A) True 
 B)False

Question 3

Inventory turnover at cost is net sales divided by average inventory at retail.

Accepted Answer

A) True 
 B)False

Question 4

Given the following: LIFO method 250 units left in inventory
  The cost of ending inventory is:
Totals for each date should include dollars signs in the third column.

Accepted Answer

A)  $1,550 
B)  $2,300 
C)  $1,200 
D)  $3,200 
E)  None of these 
A)  $1,550 
B)  $2,300 
C)  $1,200 
D)  $3,200 
E)  None of these

Question 5

The specific identification method is able to identify in the ending inventory the actual invoice cost associated with it.

Accepted Answer

A) True 
 B)False

Question 6

During inflation, LIFO produces the highest possible income for a company.

Accepted Answer

A) True 
 B)False

Question 7

Weighted-average unit cost is total cost of goods available for sale divided by beginning number of units available for sale.

Accepted Answer

A) True 
 B)False

Question 8

The cost ratio in the retail method is found by the cost of goods available for sale at cost divided by:

Accepted Answer

A)  Net sales 
B)  Ending inventory at retail 
C)  Cost of goods available for sale at retail 
D)  Net purchases at cost 
E)  None of these 
A)  Net sales 
B)  Ending inventory at retail 
C)  Cost of goods available for sale at retail 
D)  Net purchases at cost 
E)  None of these

Question 9

Complete (assume $100,000 of overhead to be distributed):
   
A. .25
B. $25,000
C. .75
D. $75,000

Accepted Answer

The answer of Complete (assume $100,000 of overhead to be...

Question 10

Allison Co. has a beginning inventory costing $90,000 and an ending inventory costing $120,000. Sales were $380,000. Assume Allison's markup rate is 40%. Based on the selling price, the inventory turnover at cost (to the nearest hundredth) is:

Accepted Answer

A)  2.17 
B)  2.22 
C)  1.47 
D)  1.58 
E)  None of these 
A)  2.17 
B)  2.22 
C)  1.47 
D)  1.58 
E)  None of these

Question 11

Mac's Hardware's gross profit on sales is 40%. At the beginning of January, cost of inventory was $18,000. During one month, Mac had net purchases of $42,000. Net sales at retail for the month were $49,000. The estimated cost of ending inventory using the gross profit method is:

Accepted Answer

A)  $30,600 
B)  $29,400 
C)  $60,000 
D)  $42,000 
E)  None of these 
A)  $30,600 
B)  $29,400 
C)  $60,000 
D)  $42,000 
E)  None of these

Question 12

In specific identification, which one is not true?

Accepted Answer

A)  The specific purchase invoice prices are used 
B)  Flow of goods and flow of cost are the same 
C)  Ending inventory is associated with specific purchase prices 
D)  Low-cost items are often used in this method 
E)  None of these 
A)  The specific purchase invoice prices are used 
B)  Flow of goods and flow of cost are the same 
C)  Ending inventory is associated with specific purchase prices 
D)  Low-cost items are often used in this method 
E)  None of these

Question 13

Compared with cost due to theft, spoilage, etc., inventory turnover at retail is usually:

Accepted Answer

A)  Higher 
B)  Much higher 
C)  Lower 
D)  Much lower 
E)  None of these 
A)  Higher 
B)  Much higher 
C)  Lower 
D)  Much lower 
E)  None of these

Question 14

To use the retail method of estimating ending inventory, the figure for net sales at retail must be known.

Accepted Answer

A) True 
 B)False

Question 15

Molls Co. allocates overhead expenses to all departments on the basis of the floor space (sq. ft.) occupied by each department. The total overhead expenses for a recent year amounted to $80,000. Department A occupied 4,000 square feet, Department B 7,000 square feet, and Department C 9,000 square feet. What is the amount of the overhead allocated to Department C?

Accepted Answer

The answer of Molls Co. allocates overhead expenses to all...

Question 16

Calculate estimated cost of ending inventory using the gross profit method:

Accepted Answer

The answer of Calculate estimated cost of ending inventory using...

Question 17

FIFO assumes all but one of the following:

Accepted Answer

A)  Sell the old inventory first 
B)  Recent cost assigned to inventory not sold 
C)  Sell the new inventory first 
D)  Cost flow tends to follow physical flow 
E)  None of these 
A)  Sell the old inventory first 
B)  Recent cost assigned to inventory not sold 
C)  Sell the new inventory first 
D)  Cost flow tends to follow physical flow 
E)  None of these

Question 18

Given the following: FIFO method: 16 units left in inventory
  The cost of goods sold is:

Accepted Answer

A)  $5,000 
B)  $10,000 
C)  $4,965 
D)  $5,225 
E)  None of these 
A)  $5,000 
B)  $10,000 
C)  $4,965 
D)  $5,225 
E)  None of these

Question 19

With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is:

Accepted Answer

A)  5.75 
B)  7.55 
C)  5.57 
D)  7.57 
E)  None of these 
A)  5.75 
B)  7.55 
C)  5.57 
D)  7.57 
E)  None of these

Question 20

All but which one of the following is information needed to calculate inventory valuation by the retail method?

Accepted Answer

A)  Beginning inventory at cost and retail 
B)  Cost of net purchases at cost and retail 
C)  Net sales at cost 
D)  Net sales at retail 
E)  None of these 
A)  Beginning inventory at cost and retail 
B)  Cost of net purchases at cost and retail 
C)  Net sales at cost 
D)  Net sales at retail 
E)  None of these

Cost of goods sold is equal to cost of goods available for sale:

Overhead expense can be allocated to particular departments.

Inventory turnover at cost is net sales divided by average inventory at retail.

Given the following: LIFO method 250 units left in inventory The cost of ending inventory is: Totals for each date should include dollars signs in the third column.

The specific identification method is able to identify in the ending inventory the actual invoice cost associated with it.

During inflation, LIFO produces the highest possible income for a company.

Weighted-average unit cost is total cost of goods available for sale divided by beginning number of units available for sale.

The cost ratio in the retail method is found by the cost of goods available for sale at cost divided by:

Complete (assume $100,000 of overhead to be distributed): A. .25 B. $25,000 C. .75 D. $75,000

Allison Co. has a beginning inventory costing $90,000 and an ending inventory costing $120,000. Sales were $380,000. Assume Allison's markup rate is 40%. Based on the selling price, the inventory turnover at cost (to the nearest hundredth) is:

Mac's Hardware's gross profit on sales is 40%. At the beginning of January, cost of inventory was $18,000. During one month, Mac had net purchases of $42,000. Net sales at retail for the month were $49,000. The estimated cost of ending inventory using the gross profit method is:

In specific identification, which one is not true?

Compared with cost due to theft, spoilage, etc., inventory turnover at retail is usually:

To use the retail method of estimating ending inventory, the figure for net sales at retail must be known.

Calculate estimated cost of ending inventory using the gross profit method:

FIFO assumes all but one of the following:

Given the following: FIFO method: 16 units left in inventory The cost of goods sold is:

With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is:

All but which one of the following is information needed to calculate inventory valuation by the retail method?

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Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

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Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Sales, Excise, and Property Taxes

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Exam 18: Inventory and Overhead

Cost of goods sold is equal to cost of goods available for sale:

Overhead expense can be allocated to particular departments.

Inventory turnover at cost is net sales divided by average inventory at retail.

Given the following: LIFO method 250 units left in inventory The cost of ending inventory is: Totals for each date should include dollars signs in the third column.

The specific identification method is able to identify in the ending inventory the actual invoice cost associated with it.

During inflation, LIFO produces the highest possible income for a company.

Weighted-average unit cost is total cost of goods available for sale divided by beginning number of units available for sale.

The cost ratio in the retail method is found by the cost of goods available for sale at cost divided by:

Complete (assume $100,000 of overhead to be distributed): A. .25 B. $25,000 C. .75 D. $75,000

Allison Co. has a beginning inventory costing $90,000 and an ending inventory costing $120,000. Sales were $380,000. Assume Allison's markup rate is 40%. Based on the selling price, the inventory turnover at cost (to the nearest hundredth) is:

Mac's Hardware's gross profit on sales is 40%. At the beginning of January, cost of inventory was $18,000. During one month, Mac had net purchases of $42,000. Net sales at retail for the month were $49,000. The estimated cost of ending inventory using the gross profit method is:

In specific identification, which one is not true?

Compared with cost due to theft, spoilage, etc., inventory turnover at retail is usually:

To use the retail method of estimating ending inventory, the figure for net sales at retail must be known.

Calculate estimated cost of ending inventory using the gross profit method:

FIFO assumes all but one of the following:

Given the following: FIFO method: 16 units left in inventory The cost of goods sold is:

With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is:

All but which one of the following is information needed to calculate inventory valuation by the retail method?

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Sales, Excise, and Property Taxes

Filters