Question 1

What is a LIFO liquidation? Why is it important to disclose the effects of a LIFO inventory liquidation?

Accepted Answer

A LIFO liquidation means that some of th

Question 2

Vaden Company uses the periodic inventory system. The data presented below is from the company's accounting records for the year ended December 31, 2013:
   Calculate the company's cost of goods sold for 2013.

Accepted Answer

$30,000 beginning inventory +

Question 3

The weighted average cost is calculated by adding the units' costs from each purchase and then dividing by the number of purchases.

Accepted Answer

A) True 
 B)False

Question 4

The buyer must include goods purchased FOB shipping point in its inventory account if the goods are still in transit.

Accepted Answer

A) True 
 B)False

Question 5

-Refer to the information provided for Lowery Company. If the company uses the FIFO inventory costing method, how much is ending inventory at March 31st?

Accepted Answer

A) $40 
B) $16 
C) $12 
D) $ 8 
A) $40 
B) $16 
C) $12 
D) $ 8

Question 6

-Refer to the information provided for Lowery Company. If the company uses the FIFO inventory costing method, how much is cost of goods sold for March?

Accepted Answer

A) $560 
B) $212 
C) $208 
D) $204 
A) $560 
B) $212 
C) $208 
D) $204

Question 7

A company can calculate its average days to sell inventory by dividing 365 days per year by its _____.

Accepted Answer

inventory

Question 8

All of the following are acceptable for financial accounting purposes except

Accepted Answer

A) specific identification. 
B) FIFO. 
C) LIFO. 
D) retail cost. 
A) specific identification. 
B) FIFO. 
C) LIFO. 
D) retail cost.

Question 9

-Refer to the information provided for Klump Co. If the company uses the LIFO inventory costing method, cost of goods sold for the month of June is:

Accepted Answer

A) $2,538.00 
B) $2,550.00 
C) $2,551.25 
D) $2,555.00 
A) $2,538.00 
B) $2,550.00 
C) $2,551.25 
D) $2,555.00

Question 10

Match the terms with the descriptions related to merchandise sales and purchases.
a.Transportation-in
e.Cost of goods available for sale
b.Perpetual inventory system
f.Periodic inventory system
c.Net purchases
g.FOB shipping point
d.FOB destination
h.Delivery expense
-Relies on a count of inventory on the last day of the year to determine the amount on hand.

Accepted Answer

The answer of Match the terms with the descriptions related...

Question 11

In a periodic inventory system, the cost of purchases is recognized as

Accepted Answer

A) an integral part of the calculation of cost of goods sold. 
B) the only part of the calculation of cost of goods sold. 
C) an increase in the inventory account. 
D) an increase in an asset account. 
A) an integral part of the calculation of cost of goods sold. 
B) the only part of the calculation of cost of goods sold. 
C) an increase in the inventory account. 
D) an increase in an asset account.

Question 12

A Purchases account is not needed under a periodic inventory system.

Accepted Answer

A) True 
 B)False

Question 13

Match the terms with the descriptions provided.
a.Average days to sell inventory
d.Inventory turnover ratio
b.Gross margin
e.Freight-in
c.Gross profit ratio
f.Freight-out
-Generally speaking, the lower this measure the better.

Accepted Answer

The answer of Match the terms with the descriptions provided.
a.Average...

Question 14

Parlato Corp. has an inventory turnover rate of 8 times. Calculate the company's average days to sell inventory.

Accepted Answer

A) 1,200 
B) 150 
C) 120 
D) 45.625 
A) 1,200 
B) 150 
C) 120 
D) 45.625

Question 15

The cost of goods sold is equal to

Accepted Answer

A) purchases less beginning inventory plus ending inventory. 
B) the inventory account as reported on the balance sheet. 
C) the cost of goods available for sale less ending inventory. 
D) the amount of inventory on hand at the end of the accounting period. 
A) purchases less beginning inventory plus ending inventory. 
B) the inventory account as reported on the balance sheet. 
C) the cost of goods available for sale less ending inventory. 
D) the amount of inventory on hand at the end of the accounting period.

Question 16

-Refer to the information provided for Robey Company. If the LIFO method is used, determine the following amounts:
A)Ending inventory on February 28th?
B)Cost of Goods sold for the month of February?

Accepted Answer

The answer of  
-Refer to the information provided for...

Question 17

Which of the following statements regarding the application of the lower of cost or market method is true?

Accepted Answer

A) Generally, historical cost is greater than replacement cost. 
B) When the lower of cost or market method is used, inventories are valued at their selling price. 
C) The lower of cost or market method is most commonly applied on a total inventory basis because it is a more conservative approach. 
D) The lower of cost or market method is an exception to the historical cost principle. 
A) Generally, historical cost is greater than replacement cost. 
B) When the lower of cost or market method is used, inventories are valued at their selling price. 
C) The lower of cost or market method is most commonly applied on a total inventory basis because it is a more conservative approach. 
D) The lower of cost or market method is an exception to the historical cost principle.

Question 18

Under the periodic inventory system, all purchases are assumed to occur before any ______.

Accepted Answer

The answer of Under the periodic inventory system, all purchases...

What is a LIFO liquidation? Why is it important to disclose the effects of a LIFO inventory liquidation?

Vaden Company uses the periodic inventory system. The data presented below is from the company's accounting records for the year ended December 31, 2013: Calculate the company's cost of goods sold for 2013.

The weighted average cost is calculated by adding the units' costs from each purchase and then dividing by the number of purchases.

The buyer must include goods purchased FOB shipping point in its inventory account if the goods are still in transit.

-Refer to the information provided for Lowery Company. If the company uses the FIFO inventory costing method, how much is ending inventory at March 31st?

-Refer to the information provided for Lowery Company. If the company uses the FIFO inventory costing method, how much is cost of goods sold for March?

A company can calculate its average days to sell inventory by dividing 365 days per year by its _____.

All of the following are acceptable for financial accounting purposes except

-Refer to the information provided for Klump Co. If the company uses the LIFO inventory costing method, cost of goods sold for the month of June is:

In a periodic inventory system, the cost of purchases is recognized as

A Purchases account is not needed under a periodic inventory system.

Match the terms with the descriptions provided. a.Average days to sell inventory d.Inventory turnover ratio b.Gross margin e.Freight-in c.Gross profit ratio f.Freight-out -Generally speaking, the lower this measure the better.

Parlato Corp. has an inventory turnover rate of 8 times. Calculate the company's average days to sell inventory.

The cost of goods sold is equal to

-Refer to the information provided for Robey Company. If the LIFO method is used, determine the following amounts: A)Ending inventory on February 28th? B)Cost of Goods sold for the month of February?

Which of the following statements regarding the application of the lower of cost or market method is true?

Under the periodic inventory system, all purchases are assumed to occur before any ______.

Accounting and the Financial Statements

The Accounting Information System

Accrual Accounting

Internal Control and Cash

Sales and Receivables

Operating Assets

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

Exam 6: Cost of Goods Sold and Inventory

What is a LIFO liquidation? Why is it important to disclose the effects of a LIFO inventory liquidation?

Vaden Company uses the periodic inventory system. The data presented below is from the company's accounting records for the year ended December 31, 2013: Calculate the company's cost of goods sold for 2013.

The weighted average cost is calculated by adding the units' costs from each purchase and then dividing by the number of purchases.

The buyer must include goods purchased FOB shipping point in its inventory account if the goods are still in transit.

-Refer to the information provided for Lowery Company. If the company uses the FIFO inventory costing method, how much is ending inventory at March 31st?

-Refer to the information provided for Lowery Company. If the company uses the FIFO inventory costing method, how much is cost of goods sold for March?

A company can calculate its average days to sell inventory by dividing 365 days per year by its _____.

All of the following are acceptable for financial accounting purposes except

-Refer to the information provided for Klump Co. If the company uses the LIFO inventory costing method, cost of goods sold for the month of June is:

In a periodic inventory system, the cost of purchases is recognized as

A Purchases account is not needed under a periodic inventory system.

Match the terms with the descriptions provided. a.Average days to sell inventory d.Inventory turnover ratio b.Gross margin e.Freight-in c.Gross profit ratio f.Freight-out -Generally speaking, the lower this measure the better.

Parlato Corp. has an inventory turnover rate of 8 times. Calculate the company's average days to sell inventory.

The cost of goods sold is equal to

-Refer to the information provided for Robey Company. If the LIFO method is used, determine the following amounts: A)Ending inventory on February 28th? B)Cost of Goods sold for the month of February?

Which of the following statements regarding the application of the lower of cost or market method is true?

Under the periodic inventory system, all purchases are assumed to occur before any ______.

Accounting and the Financial Statements

The Accounting Information System

Accrual Accounting

Internal Control and Cash

Sales and Receivables

Operating Assets

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters