Exam 7: Inventory and Cost of Goods Sold

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 number of days to sell in Year 2 was approximately:

Match the term to the appropriate definition.There are more definitions than terms. -Cost of Goods Sold Equation

The primary goals of inventory managers are to maintain a sufficient quantity of inventory to meet customers' needs,ensure inventory quality meets customers' expectations and company standards,and minimize the cost of acquiring and carrying inventory.

Ending inventory = Beginning inventory + Purchases − Cost of goods sold

The process of buying and selling inventory is known as inventory:

Assume a periodic inventory system is used.Which inventory costing method generally results in the cost of the first goods purchased being assigned to ending inventory?

Cortez Company updates its inventory records perpetually.The company's records showed a beginning inventory of $1,800,cost of goods sold of $4,200,and ending inventory of $2,400.How much inventory was purchased during the year?

A company uses a weighted-average perpetual inventory system.The following transactions took place during the month of August: August 2 10 units were purchased at \ 12 per unit August 18 15 units were purchased at \ 15 per unit August 29 20 units were sold August 31 14 units were purchased at \ 16 per unit What is the per-unit value of ending inventory on August 31? (Round each per unit cost to 2 decimal places. )

LIFO uses the ________ unit costs for cost of goods sold on the income statement and the ________ unit costs for inventory on the balance sheet.

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 specific identification method,what is the cost of its ending inventory?

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 weighted average cost method,what is the cost of goods sold for January?

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 inventory turnover ratio?

Match the term to the appropriate definition.There are more definitions than terms. -Cost of Goods Sold

Which of the following statements about the lower of cost or market rule/net realizable value is not correct?

Which one of the following statements about inventory is not correct?

A fire destroyed some of Cholla,Inc.'s records.Information from the documents found related to inventory is listed below. What was the amount of inventory that was purchased during the year?

Assume the periodic inventory method is used.When LIFO is used,costs are assigned to cost of goods sold using the most recent purchase at the time of the sale.

An overstatement of beginning inventory causes net income to be overstated.

If a company uses LIFO to prepare its U.S.tax return,then it must use LIFO to prepare its financial statements.

A company had inventory on November 1 of 5 units at a cost of $20 each.On November 2,the company purchased 10 units at $22 each.On November 5,the company sold 8 units for $55 each.On November 6,the company purchased 6 units at $25 each.The company uses a perpetual inventory system.Using the weighted average method,what is the value of the ending inventory on November 30? (Round each per unit cost to 2 decimal places and then round your answer to the nearest whole dollar. )