Exam 15: Accounting for Merchandise Inventory

Which of the following items should be included in inventory?

LIFO reflects most recent costs for inventory on the balance sheet.

If the ending inventory is overstated in period 1:

Given the following accounts: [1] Cash [2] Accounts receivable [3] Merchandise inventory [4] Supplies [5] Accounts payable [6] Sales [7] Sales returns and allowances [8] Sales discounts [9] Cost of goods sold [10] Purchases [11] Purchase returns and allowances [12] Purchase discounts [13] Freight-in Indicate the account(s) to be debited and credited to record the following transactions. -Sold merchandise on account.- Perpetual Debit ________ & ________ Credit ________ & ________

Last year's ending inventory was overstated.This error would cause:

Items that are very similar,such as canned goods in a grocery store would be costed using the ________ system of inventory valuation.

Given the following accounts: [1] Cash [2] Accounts receivable [3] Merchandise inventory [4] Supplies [5] Accounts payable [6] Sales [7] Sales returns and allowances [8] Sales discounts [9] Cost of goods sold [10] Purchases [11] Purchase returns and allowances [12] Purchase discounts [13] Freight-in Indicate the account(s) to be debited and credited to record the following transactions. -Purchased merchandise with credit terms of 2/10,n/30.- Periodic Debit ________ & ________ Credit ________ & ________

Under the perpetual inventory system,which of the following accounts would not be used?

The weighted-average method:

The full disclosure principle says that if a change is made:

The inventory method that matches old costs with current selling prices is:

Shayla's Design uses a periodic inventory system.Shayla sold 33 artist kits during January.Other data for January includes: Jan. 1 Balance 12 kits @\ 30 11 Purchased 20 kits @\ 33 25 Purchased 26 kits @\ 35 Ending inventory under the LIFO method is:

The inventory method where the cost flows tend to follow the physical flow is:

An entry to record the payment to a vendor was correctly recorded and posted to the general ledger but was not posted to the subsidiary ledger.This error would cause:

Sterling Supply uses a periodic inventory system.Magnum sold 25 globes during March.Other data for March includes: Mar. 1 Balance 20@\ 12 11 Purchased 10@11 25 Purchased 10@10 Cost of goods sold under the weighted-average method is:

The inventory method that assumes the cost of the ending inventory consists of new inventory is:

Shayla's Design uses a periodic inventory system.Shayla sold 33 artist kits during January.Other data for January includes: Jan. 1 Balance 12 kits @\ 30 11 Purchased 20 kits @\ 33 25 Purchased 26 kits @\ 35 Ending inventory under the FIFO method is:

Which of the following would not be used to pay for purchases under the periodic system?

The return of merchandise was recorded as a debit to Accounts Payable and a credit to Purchases.This error would cause:

Lois's Furniture uses a periodic inventory system.Lois sold 60 tables during August.Other data for August includes: Aug. 1 Balance 8@\ 15 9 Purchased 12@18 18 Purchased 60@20 Ending inventory under the LIFO method is: