Question 1

Inventory costing methods place primary emphasis on assumptions about

Accepted Answer

A)  flow of goods 
B)  flow of costs 
C)  flow of goods or flow of costs depending on the method 
D)  neither flow of goods or flow of costs 
A)  flow of goods 
B)  flow of costs 
C)  flow of goods or flow of costs depending on the method 
D)  neither flow of goods or flow of costs

Question 2

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 LIFO.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 3

Generally, the lower the number of days' sales in inventory, the better.

Accepted Answer

A) True 
 B)False

Question 4

If a company values inventory at the lower of cost or market, which of the following is the value of merchandise inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole.

Accepted Answer

A)  $6,960 
B)  $7,700 
C)  $6,540 
D)  $7,280 
A)  $6,960 
B)  $7,700 
C)  $6,540 
D)  $7,280

Question 5

Of the three widely used inventory costing methods (FIFO, LIFO, and average cost), the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first.

Accepted Answer

A) True 
 B)False

Question 6

The following lots of a particular commodity were available for sale during the year:   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?

Accepted Answer

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

Question 7

Match between columns
                        Premises: Vendor’s Invoice
Purchase Order
Receiving Report

Accepted Answer

The Answer of last document in the chain, use to is...

Question 8

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

Accepted Answer

A)  $58,000 
B)  $91,000 
C)  $107,000 
D)  $69,300 
A)  $58,000 
B)  $91,000 
C)  $107,000 
D)  $69,300

Question 9

Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and owner's equity?

Accepted Answer

A)  net income is overstated, assets are overstated, owner's equity is understated 
B)  net income is overstated, assets are overstated, owner's equity is overstated 
C)  net income is understated, assets are understated, owner's equity is understated 
D)  net income is understated, assets are understated, owner's equity is overstated 
A)  net income is overstated, assets are overstated, owner's equity is understated 
B)  net income is overstated, assets are overstated, owner's equity is overstated 
C)  net income is understated, assets are understated, owner's equity is understated 
D)  net income is understated, assets are understated, owner's equity is overstated

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

A purchase order establishes an initial record of the receipt of the inventory.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is used to analyze the efficiency and effectiveness of inventory management?

Accepted Answer

A)  inventory turnover only 
B)  number of days' sales in inventory only 
C)  both inventory turnover and number of days' sales in inventory 
D)  neither inventory turnover or number of days' sales in inventory 
A)  inventory turnover only 
B)  number of days' sales in inventory only 
C)  both inventory turnover and number of days' sales in inventory 
D)  neither inventory turnover or number of days' sales in inventory

Question 13

Describe three inventory cost flow assumptions and how they impact the financial statements.

Accepted Answer

1. Cost flow is in the order in which co

Question 14

The inventory costing method that reports the earliest costs in ending inventory is

Accepted Answer

A)  FIFO 
B)  LIFO 
C)  Average cost 
D)  Specific identification 
A)  FIFO 
B)  LIFO 
C)  Average cost 
D)  Specific identification

Question 15

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:   If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is

Accepted Answer

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

Question 16

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.
  Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method.

Accepted Answer

A)  $324 
B)  $372 
C)  $320 
D)  $364 
A)  $324 
B)  $372 
C)  $320 
D)  $364

Question 17

Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the

Accepted Answer

A)  customer's ledger 
B)  creditor's ledger 
C)  inventory ledger 
D)  purchase ledger 
A)  customer's ledger 
B)  creditor's ledger 
C)  inventory ledger 
D)  purchase ledger

Question 18

On the basis of the following data, estimate the cost of the merchandise inventory at March 31 by the retail method:

Accepted Answer

Estimated cost of merchandise

Question 19

List the internal control objectives illustrated by the following:

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 20

The following units of a particular item were available for sale during the year:
   The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year. What is the total cost of ending inventory according to FIFO?

Accepted Answer

$193,200 (

Inventory costing methods place primary emphasis on assumptions about

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 LIFO.

Generally, the lower the number of days' sales in inventory, the better.

If a company values inventory at the lower of cost or market, which of the following is the value of merchandise inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole.

Of the three widely used inventory costing methods (FIFO, LIFO, and average cost), the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first.

The following lots of a particular commodity were available for sale during the year: 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?

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

Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and owner's equity?

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.

A purchase order establishes an initial record of the receipt of the inventory.

Which of the following is used to analyze the efficiency and effectiveness of inventory management?

Describe three inventory cost flow assumptions and how they impact the financial statements.

The inventory costing method that reports the earliest costs in ending inventory is

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September: If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is

Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the

On the basis of the following data, estimate the cost of the merchandise inventory at March 31 by the retail method:

List the internal control objectives illustrated by the following:

The following units of a particular item were available for sale during the year: The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year. What is the total cost of ending inventory according to FIFO?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 7: Inventories

Inventory costing methods place primary emphasis on assumptions about

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 LIFO.

Generally, the lower the number of days' sales in inventory, the better.

If a company values inventory at the lower of cost or market, which of the following is the value of merchandise inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole.

Of the three widely used inventory costing methods (FIFO, LIFO, and average cost), the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first.

The following lots of a particular commodity were available for sale during the year: 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?

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

Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and owner's equity?

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.

A purchase order establishes an initial record of the receipt of the inventory.

Which of the following is used to analyze the efficiency and effectiveness of inventory management?

Describe three inventory cost flow assumptions and how they impact the financial statements.

The inventory costing method that reports the earliest costs in ending inventory is

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September: If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is

Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the

On the basis of the following data, estimate the cost of the merchandise inventory at March 31 by the retail method:

List the internal control objectives illustrated by the following:

The following units of a particular item were available for sale during the year: The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year. What is the total cost of ending inventory according to FIFO?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters