The following lots of a particular commodity were available for sale during the year: $\begin{array}{ll} \text { Beginning inventory } & 10 \text { units at } \$ 60 \\ \text { First purchase } & 25 \text { units at } \$ 65 \\ \text { Second purchase } & 30 \text { units at } \$ 68 \\ \text { Third purchase } & 15 \text { units at } \$ 75 \end{array}$ The firm uses the periodic system and there are 25 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year using the LIFO method?

A) $1,685 B) $1,575 C) $1,805 D) $3,815 A) $1,685 B) $1,575 C) $1,805 D) $3,815

The following lots of a particular commodity were available for sale during the year: $\begin{array}{lc} \text { Beginning invent ory } & 5 \text { units at } \$ 61 \\ \text { First purchase } & 15 \text { units at } \$ 63 \\ \text { Second purchase } & 10 \text { units at } \$ 74 \\ \text { Third purchase } & 10 \text { units at } \$ 77 \end{array}$ The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of cost of good sold for the year according to the average cost method?

A) $1,380 B) $1,375 C) $1,510 D) $1,250 A) $1,380 B) $1,375 C) $1,510 D) $1,250

The inventory data for an item for November are: $\begin{array}{rll} \text { Nov } 1 & \text { Inventory } & 20 \text { units at } \$ 19 \\ 4 & \text { Sold } & 10 \text { units } \\ 10 & \text { Purchased } & 30 \text { units at } \$ 20 \\ 17 & \text { Sold } & 20 \text { units } \\ 30 & \text { Purchased } & 10 \text { units at } \$ 21 \end{array}$ Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO?

A) $610 B) $600 C) $590 D) $580 A) $610 B) $600 C) $590 D) $580

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September: $\begin{array}{rll} \text { Sep. } 1 & \text { Inventory } & 20 \text { units at } \$ 20 \\ 4 & \text { Sold } & 10 \text { units } \\ 10 & \text { Purchased } & 30 \text { units at } \$ 25 \\ 17 & \text { Sold } & 20 \text { units } \\ 30 & \text { Purchased } & 10 \text { units at } \$ 30 \end{array}$ If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is

A) $800 B) $650 C) $750 D) $700 A) $800 B) $650 C) $750 D) $700

The following units of an inventory item were available for sale during the year: $\begin{array}{ll} \text { Beginning inventory } & 10 \text { units at } \$ 55 \\ \text { First purchase } & 25 \text { units at } \$ 60 \\ \text { Second purchase } & 30 \text { units at } \$ 65 \\ \text { Third purchase } & 15 \text { units at } \$ 70 \end{array}$ The firm uses the periodic inventory system. During the year, 60 units of the item were sold. The value of ending inventory using average cost is:

A) $1,353 B) $1,263 C) $1,375 D) $1,150 A) $1,353 B) $1,263 C) $1,375 D) $1,150

Use the following information to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. $\begin{array}{|l|l|l|l|} \hline \text { Date } & \text { Product Z } & \text { Units } & \text { Cost } \\ \hline \text { May 3 } & \text { Purchase } & 5 & \$ 20 \\ \hline \text { May 10 } & \text { Sale } & 3 & \\ \hline \text { May 17 } & \text { Purchase } & 10 & \$ 24 \\ \hline \text { May 20 } & \text { Sale } & 6 & \\ \hline \text { May 23 } & \text { Sale } & 3 & \\ \hline \text { May 30 } & \text { Purchase } & 10 & \$ 30 \\ \hline \end{array}$ Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the FIFO inventory cost method.

A) $120 B) $180 C) $136 D) $144 A) $120 B) $180 C) $136 D) $144

Exam 6: Inventories

The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at \ 60 First purchase 25 units at \ 65 Second purchase 30 units at \ 68 Third purchase 15 units at \ 75 The firm uses the periodic system and there are 25 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year using the LIFO method?

(Multiple Choice)

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Question 101

The selection of an inventory costing method has no significant impact on the financial statements.

(True/False)

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Question 102

Stevens Company started the year with an inventory cost of $145,000. During the month of January they purchased inventory that cost of $53,000. January sales totaled $140,000. Estimated gross profit is 35%. The estimated ending inventory as of January 31 is

(Multiple Choice)

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(70)

Question 103

The following lots of a particular commodity were available for sale during the year: Beginning invent ory 5 units at \ 61 First purchase 15 units at \ 63 Second purchase 10 units at \ 74 Third purchase 10 units at \ 77 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of cost of good sold for the year according to the average cost method?

(Multiple Choice)

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Question 104

The inventory data for an item for November are: Nov 1 Inventory 20 units at \ 19 4 Sold 10 units 10 Purchased 30 units at \ 20 17 Sold 20 units 30 Purchased 10 units at \ 21 Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO?

(Multiple Choice)

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Question 105

During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory.

(Multiple Choice)

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Question 106

Beginning inventory, purchases and sales data for widgets are as follows: Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using FIFO.

(Essay)

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Question 107

Inventory turnover measures the length of time is takes to acquire, sell and replace the inventory.

(True/False)

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Question 108

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September: Sep. 1 Inventory 20 units at \ 20 4 Sold 10 units 10 Purchased 30 units at \ 25 17 Sold 20 units 30 Purchased 10 units at \ 30 If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is

(Multiple Choice)

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Question 109

Beginning inventory, purchases and sales data for hammers are as follows: Assuming the business maintains a perpetual inventory system, complete the inventory cards and calculate the cost of merchandise sold and ending inventory under the following assumptions: a. First-in, first-out b. Last-in, first-out 11ed7796_115f_20e9_8231_b16283e4a9ec_TB2083_00

(Essay)

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Question 110

Which of the following is not an example for safeguarding inventory?

(Multiple Choice)

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Question 111

The following units of an inventory item were available for sale during the year: Beginning inventory 10 units at \ 55 First purchase 25 units at \ 60 Second purchase 30 units at \ 65 Third purchase 15 units at \ 70 The firm uses the periodic inventory system. During the year, 60 units of the item were sold. The value of ending inventory using average cost is:

(Multiple Choice)

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Question 112

Use the following information to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Product Z Units Cost May 3 Purchase 5 \ 20 May 10 Sale 3 May 17 Purchase 10 \ 24 May 20 Sale 6 May 23 Sale 3 May 30 Purchase 10 \ 30 Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the FIFO inventory cost method.

(Multiple Choice)

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Question 113

If ending inventory for the year is overstated, owner's equity reported on the balance sheet at the end of the year is understated.

(True/False)

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Question 114

Under the _________ inventory method, accounting records maintain a continuously updated inventory value.

(Multiple Choice)

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Question 115

Merchandise inventory at the end of the year was understated. Which of the following statements correctly states the effect of the error?

(Multiple Choice)

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Question 116

If a company uses the periodic inventory system to cost its inventory, the gross profit method is a method that can be used to check on theft when the actual inventory is taken by the company.

(True/False)

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Question 117

When merchandise inventory is shown on the balance sheet, both the method of determining the cost of the inventory and the method of valuing the inventory should be shown.

(True/False)

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Question 118

Under the periodic inventory system, a physical inventory is taken to determine the cost of the inventory on hand and the cost of the merchandise sold.

(True/False)

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Question 119

List the internal control objectives illustrated by the following:

(Essay)

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Question 120

Exam 6: Inventories

The selection of an inventory costing method has no significant impact on the financial statements.

Stevens Company started the year with an inventory cost of $145,000. During the month of January they purchased inventory that cost of $53,000. January sales totaled $140,000. Estimated gross profit is 35%. The estimated ending inventory as of January 31 is

The inventory data for an item for November are: Nov 1 Inventory 20 units at \ 19 4 Sold 10 units 10 Purchased 30 units at \ 20 17 Sold 20 units 30 Purchased 10 units at \ 21 Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO?

During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory.

Beginning inventory, purchases and sales data for widgets are as follows: Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using FIFO.

Inventory turnover measures the length of time is takes to acquire, sell and replace the inventory.

Which of the following is not an example for safeguarding inventory?

If ending inventory for the year is overstated, owner's equity reported on the balance sheet at the end of the year is understated.

Under the _________ inventory method, accounting records maintain a continuously updated inventory value.

Merchandise inventory at the end of the year was understated. Which of the following statements correctly states the effect of the error?

If a company uses the periodic inventory system to cost its inventory, the gross profit method is a method that can be used to check on theft when the actual inventory is taken by the company.

When merchandise inventory is shown on the balance sheet, both the method of determining the cost of the inventory and the method of valuing the inventory should be shown.

Under the periodic inventory system, a physical inventory is taken to determine the cost of the inventory on hand and the cost of the merchandise sold.

List the internal control objectives illustrated by the following:

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

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