Exam 7: Inventory and the Cost of Sales

Monica Mills Co. began the year with $100,000 in inventory and ends the year with $300,000. Purchases during the year amounted to $1,660,000. The number of days' sales in inventory for the year was

A firm is writing its inventory down to the lower of cost or market. It has determined the following per unit costs and market prices for its product: Original cost \ 104 Sales price 120 Selling cost 20 Normal profit 18 Replacement cost 78 Given these data, the firm should value its inventory at a per unit cost of

Minot Company's inventory balance on December 31, 2012 was $775,000 before considering the following transactions: Minot Company also had the following information available: Given the above information, compute Minot Company's inventory balance on December 31, 2012.

Iliescu Sporting Goods had the following inventory records for one line of skis for the month of January: - Refer to Exhibit 7-7. Assuming the perpetual LIFO inventory method is used, what is the cost of Iliescu's ending inventory?

The gross profit method of estimating inventory would NOT be useful when

When the current year's ending inventory amount is overstated, the

Which inventory cost flow assumption best reflects the current value of inventory on the balance sheet?

Which of the following accounts would be found on the income statement?

If a firm's beginning inventory is $70,000, purchases are $320,000, and the cost of goods sold is $300,000, what is its ending inventory?

A firm using the periodic inventory method returned defective merchandise costing $2,000 to one of its suppliers. The entry to record this transaction would include a debit to

The following information is available for Waggoner Corporation for the month of June: Given this information, the perpetual LIFO ending inventory balance is

Under the periodic inventory method, if an inventory purchase has been made and recorded but has NOT yet arrived (and thus is not counted), the financial statements will

A firm that uses the perpetual inventory method purchased $1,000 of inventory on terms 2/10, n/30. The journal entry to record this transaction would include a debit to

Which of the following would NOT be included in ending inventory of the seller?

If ending inventory on December 31, 2011, is overstated by $60,000, what is the effect on net income for 2012?

Rawson Company's inventory records for April are as follows:: Compute the cost of ending inventory using the following inventory costing methods:

Ling Company's inventory records for the current year are as follows: Compute the cost of ending inventory using the following inventory costing methods:

Purchases and sales during a recent period for Casora Inc. were as follows: - Refer to Exhibit 7-4. Beginning inventory was 100 units at $2 each. Given this information, what is the ending inventory if the periodic LIFO costing alternative is used?

The misclassification of Freight-in as an operating expense will result in

Inventory costs include all of the following, EXCEPT