Exam 5: Reporting and Analyzing Inventories

During January,a company that uses a perpetual inventory system had beginning inventory,purchases,and sales as follows.What was the weighted average cost of the company's January 31 inventory?

(Essay)

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Question 201

Given the following information,determine the cost of ending inventory at June 30 using the LIFO perpetual inventory method.Assume this is the first month of the company's operations. June 1: 15 units were purchased at $20 per unit. June 15: 12 units were sold. June 29: 8 units were purchased for $25 per unit.

(Multiple Choice)

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Question 202

When the __________ method is used with a periodic inventory system,cost of goods sold is assigned costs from the most recent purchases for the period.

(Short Answer)

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Question 203

In a period of rising prices,FIFO usually gives a lower taxable income,which leads to an advantage when it comes to paying income tax.

(True/False)

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Question 204

Toys "R" Us had cost of goods sold of $8,321 million and ending inventory of $2,027 million.Based on this,its days' sales in inventory is equal to 89 days.

(True/False)

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Question 205

The inventory turnover ratio:

(Multiple Choice)

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Question 206

Given the following information,determine the cost of ending inventory at December 31 using the FIFO perpetual inventory method. December 2: 5 units were purchased at $7 per unit. December 9: 10 units were purchased at $9.40 per unit. December 11: 12 units were sold at $35 per unit. December 15: 20 units were purchased at $10.15 per unit. December 22: 18 units were sold at $35 per unit.

(Multiple Choice)

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Question 207

The assignment of costs to cost of goods sold and inventory using weighted average usually yields different results depending on whether a perpetual or periodic system is used

(True/False)

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Question 208

A merchandiser that uses a periodic inventory system made the following cash purchases and sales during the year.There was no beginning inventory. The company has a calendar year-end and uses the FIFO inventory valuation method.Prepare the general journal entry to record the November 16 sale and the year-end adjusting entry relating to inventory.

(Essay)

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Question 209

Given the following information,determine the cost of ending inventory at November 30 using the FIFO perpetual inventory method. November 3: 15 units were purchased at $8 per unit. November 11: 18 units were purchased at $9.50 per unit. November 15: 15 units were sold at $45 per unit. November 18: 30 units were purchased at $10.75 per unit. November 30: 20 units were sold at $55 per unit.

(Essay)

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Question 210

An understatement of the ending inventory balance will understate cost of goods sold and overstate net income.

(True/False)

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Question 211

Showing 201 - 211 of 211

During January,a company that uses a perpetual inventory system had beginning inventory,purchases,and sales as follows.What was the weighted average cost of the company's January 31 inventory?

When the __________ method is used with a periodic inventory system,cost of goods sold is assigned costs from the most recent purchases for the period.

In a period of rising prices,FIFO usually gives a lower taxable income,which leads to an advantage when it comes to paying income tax.

Toys "R" Us had cost of goods sold of $8,321 million and ending inventory of $2,027 million.Based on this,its days' sales in inventory is equal to 89 days.

The inventory turnover ratio:

The assignment of costs to cost of goods sold and inventory using weighted average usually yields different results depending on whether a perpetual or periodic system is used

An understatement of the ending inventory balance will understate cost of goods sold and overstate net income.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

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