Exam 6: Cost Of Goods Sold and Inventory

Match the terms with the descriptions related to merchandise sales and purchases. -Relies on a count of inventory on the last day of the year to determine the amount on hand.

The cost of goods sold is equal to

The cost of goods sold for Uzzi Corp. totaled $750,000. Sales returns and purchase returns were $3,000 and $5,000, respectively. Purchases totaled $800,000. Purchase discounts totaled $7,000, while sales discounts totaled $9,000. Beginning inventory was $100,000. Determine the amount of ending inventory to be reported on the company's balance sheet.

Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June.June -Refer to the information provided for Klump Co. If the company uses the FIFO inventory costing method, the amount of ending inventory reported on the balance sheet is:

Eli Company sells novelty items and offers terms of 1/10, n/30 to credit customers. One customer, Faulkner, Inc., purchased 100 Sweet-16 party decor packs with a list price of $20 each on March 5, 2019. -Refer to the information provided for Eli Company. If the customer pays the amount of the invoice for its purchase on March 14, 2019, how much cash will Eli Company receive?

Explain the relationship between the valuation of inventory and income measurement as it relates to the balance sheet and income statement.

At the year-end inventory count, if goods in transit are shipped FOB shipping point, they should be included in the inventory count of:

Ward Company had beginning inventory of $40,000 on January 1. During the year, the company purchased $660,000 of goods from a supplier. On December 31, the cost of unsold inventory was $50,000. Compute Ward Company's cost of goods available for sale and cost of goods sold for the year.

Zellenger uses a periodic inventory system and had the following data for inventory during the most recent year: Calculate the company's ending inventory and cost of goods sold under the following inventory cost flow methods: A) FIFO B) LIFO C) Average Cost

Match the costs that might be included as part of the cost of inventory to the listed accounting treatment. (Choices may be used more than once.) -Prices are rising; ending inventory best approximates replacement cost with this method.

The following selected financial information is available for Pham Enterprises for the year ended December 31: -Refer to the information provided for Pham Enterprises. What is the company's gross profit ratio for the year ended December 31?

Ending inventory is equal to the cost of items on hand plus

Satoor, Inc.Satoor, Inc., which uses a periodic inventory system, purchased merchandise from Taye Company on July 7 for $15,000. The credit terms were 1/10, n/30. The goods were shipped FOB shipping point on July 7. Satoor, Inc. received the merchandise on July 10 and paid the amount due on July 15. -Refer to the information provided for Satoor, Inc. When did title to the merchandise transfer from the seller to the buyer?

A LIFO liquidation occurs when a company sells more units than it buys during the period.

Roesel Fashions completed a physical inventory at the end of the current year. A review of the physical inventory procedures and records uncovered several errors that are described below. In the columns provided, indicate the effect, if any, on the four financial statement items listed. Use the following codes for your answers: O = Overstatement; U = Understatement; NE = No Effect

Under a perpetual inventory system, each time goods are purchased, the inventory account is transferred to sales revenue.

A LIFO inventory liquidation occurs when a company that uses the LIFO inventory costing method

Which of the following statements is true?

Which inventory costing method results in the lowest income tax expense during a period of decreasing purchase prices?

Coffski, Inc. sold merchandise to a customer on credit. The invoice amount was $1,000; the invoice date was June 10th; credit terms were 1/10, n/30. Which of the following statements is true?