Exam 7: Inventory and Cost of Goods Sold

Pearl Company has a perpetual inventory system.The company uses the FIFO method to assign costs to inventory and cost of goods sold.Consider the following information: Date Description Units Cost per unit April 1 Beginning inventory 1,000 \ 5 April 2 Purchase 750 \ 4 April 5 Sales 1,250 What amounts would be reported as cost of goods sold and ending inventory for April?

Barron Industries has the following information: What is Barron's number of days to sell?

Nordic Industries uses a periodic inventory system.During its first month of operations,Nordic Industries purchased inventory as follows: There were 100 units in ending inventory on January 31. Under the LIFO cost method,what is the cost of goods sold for January?

Lower of cost or market can be applied on an item or total inventory basis.

The records of Alberta Inc.included the following information: Cost of goods sold \ 1,800,000 Begirniring irventory 435,000 Ending irventory 465,000 What is the number of days to sell?

If the market value of goods in inventory is $26,000 below its cost,the company should:

Sparks Furniture Company carries three lines of sofas.Information about the sofa inventory as of the end of its most recent fiscal year follows.If LCM/NRV is applied to each separate product line,what is the amount of the adjustment that must be made to the company's inventory? Product Line Cost per Unit Market Value per Urit Quartity Rustic \ 700 \ 725 190 Mediterranearn 600 605 300 Conternporary 950 820 275

Langston Company updates its inventory periodically.The company's cost of goods sold was $2,700 and purchases were $5,600 during the year.The company's ending inventory count was $5,000.What was the amount of beginning inventory?

Acme Company's balance sheet shows three inventory accounts-raw materials,work in process,and finished goods.Acme Company must be a:

One of the most common sources of misstatement in financial statements is the:

Alphabet Company,which uses the periodic inventory method,purchases different letters for resale.Alphabet had no beginning inventory.It purchased A thru G in January at $4 per letter.In February,it purchased H thru L at $6 per letter.It purchased M thru R in March at $7 per letter.It sold A,D,E,H,J and N in October.There were no additional purchases or sales during the remainder of the year. If Alphabet Company uses the weighted average method,what is the cost of its ending inventory? (Round the per unit cost to two decimal places and then round your answer to the nearest whole dollar. )

Which of the following statements about inventory costing methods is correct?

When costs to purchase inventory are rising,using LIFO leads to reporting a ________ than FIFO.

Nordic Industries uses a periodic inventory system.During its first month of operations,Nordic Industries purchased inventory as follows: There were 100 units in ending inventory on January 31. Under the FIFO cost method,what is the cost of goods sold for January?

Sun Concepts sells and installs solar energy products.Information from the financial statements for the last two years revealed the following: Beginning Inventory Ending Inventory Cost of Goods Sold Year 1 \ 90,000 \ 130,000 \ 605,000 Year 2 130,000 110,000 720,000 The inventory turnover ratio in Year 1 was:

Match the term to the appropriate definition.There are more definitions than terms. -FIFO

Which method will result in the same cost of goods sold amount whether it is computed using the periodic inventory system or the perpetual inventory system?

Inventory shipped FOB destination and in transit on the last day of the year should be included in:

Inventory shipped FOB shipping point and in transit on the last day of the year should be included in:

If the Ball Corp.writes down its inventory,its: