Exam 5: Inventories and Cost of Goods Sold

Learning Tree,Inc. The following data is available for one of the products sold by Learning Tree,Inc. ,which uses the perpetual inventory system: Refer to the data for Learning Tree,Inc. If the moving average method is used,what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10?

Sunset Band,Inc.purchased merchandise from Rumble Music Company on June 5,2014.The goods were shipped the same day.The merchandise's selling price was $15,000.The credit terms were 1/10,n/30.The shipping terms were FOB shipping point.Sunset received the merchandise on June 10,2014.Sunset paid the amount due on June 13,2014. When did title to the merchandise transfer from Rumble Music Company to Sunset?

A major advantage of the weighted average method of inventory costing is that

Caruso,Inc.has an inventory turnover rate of 8 times.If its cost of goods sold is $150,000,then

In order to evaluate a company's gross profit ratio,

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

Chen's Department Store Chen's Department Store is a merchandising company that uses the periodic inventory system.Selected account balances are listed below: Refer to the account information for Chen's Department Store. Determine Chen's gross profit.

Whether LIFO costing is applied at the time each sale is made or only at the end of the period,both the periodic and perpetual systems will yield the same ending inventory under LIFO.

The following information was taken from the operating activity section of the 2014 statement of cash flows for Limited Corp: Based on the information provided,which one of the following conclusions is correct?

If a customer returns merchandise which has already been paid for,the retailer may give either a cash refund or a credit on account.

The inventory of a(n)____________________ consists of three distinct types of costs: direct materials,direct labor,and manufacturing overhead.

Feinstein Company buys designer clothing to sell in its retail stores.Since much of the merchandise comes from Dallas and Europe.Feinstein Company must pay freight charges to get the merchandise shipped in.Which statement is true?

Wendt,Inc.counted its ending inventory as $178,000 at year-end,January 31,2014.Upon review of the records,it was noted that the following items were in transit during the count: Determine the correct inventory balance at January 31.

Share,Inc. The following data is available for one of the products sold by Share,Inc. ,which uses a perpetual inventory system. Refer to the data for Share,Inc. If the moving average method is used,how much is ending inventory on May 30?

Baucus,Inc. Baucus,Inc.reported the following information for 2014 and 2013: Refer to the information for Baucus,Inc. How much of every dollar is gross profit for 2014?

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

Grout,Inc.offers terms of 2/10,n/30 to credit customers.Tile Mart Corp.purchased 100 tile cutters with a list price of $20 each on March 5,2014,on account. Tile Mart Corp.paid the invoice on March 31,2014.How much sales discount will Grout recognize?

The LIFO conformity rule requires that if a company uses LIFO in reporting income to stockholders,it also must use LIFO on its tax return.

If the amount assigned to ending inventory is incorrect,

The inventory turnover ratio is defined as cost of goods sold divided by average inventory.