Question 1

Which of the following terms best describes the assumption made in applying the four inventory methods?

Accepted Answer

A) Cost flow 
B) Goods flow 
C) Asset flow 
D) Physical flow 
A) Cost flow 
B) Goods flow 
C) Asset flow 
D) Physical flow

Question 2

Use this inventory information for the month of July to answer the following question.   Assuming that a periodic inventory system is used,what is cost of goods sold under the average-cost method?

Accepted Answer

A) $3,648 
B) $7,752 
C) $3,712 
D) $7,888 
A) $3,648 
B) $7,752 
C) $3,712 
D) $7,888

Question 3

The gross profit method requires that records be kept at both cost and retail.

Accepted Answer

A) True 
 B)False

Question 4

Use this information to answer the following question.   A periodic inventory system is used.
Using LIFO,the cost assigned to ending inventory is

Accepted Answer

A) $3,480. 
B) $8,112. 
C) $2,664. 
D) $8,928. 
A) $3,480. 
B) $8,112. 
C) $2,664. 
D) $8,928.

Question 5

Which of the following is an inventory processing system?

Accepted Answer

A) Perpetual 
B) Last-in,first-out 
C) Lower-of-cost-or-market 
D) Average-cost 
A) Perpetual 
B) Last-in,first-out 
C) Lower-of-cost-or-market 
D) Average-cost

Question 6

Which inventory method generally results in the most realistic balance sheet valuation?

Accepted Answer

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

Question 7

When taking a physical inventory under the retail method,it is necessary to know only the quantity of items on hand.

Accepted Answer

A) True 
 B)False

Question 8

An understatement of ending inventory in a period will result in an overstatement of gross margin in the next period.

Accepted Answer

A) True 
 B)False

Question 9

Which costing method will produce different results under perpetual and periodic systems?

Accepted Answer

A) Specific identification 
B) Average-cost 
C) FIFO 
D) Both FIFO and specific identification 
A) Specific identification 
B) Average-cost 
C) FIFO 
D) Both FIFO and specific identification

Question 10

Merchandise inventory is valued on the balance sheet at the expected resale price.

Accepted Answer

A) True 
 B)False

Question 11

A manufacturer's inventory consists of raw materials,work in process,and finished goods.

Accepted Answer

A) True 
 B)False

Question 12

A company has goods available for sale of $500,000 at retail and $350,000 at cost.It also had sales of $420,000 for the period.What is the estimated cost of ending inventory,using the retail method?

Accepted Answer

A) $56,000 
B) $76,000 
C) $80,000 
D) $126,000 
A) $56,000 
B) $76,000 
C) $80,000 
D) $126,000

Question 13

Use this information to answer the following question.   A periodic inventory system is used; ending inventory is 147 units.
What is ending inventory under FIFO?

Accepted Answer

A) $1,382 
B) $1,582 
C) $1,282 
D) $1,482 
A) $1,382 
B) $1,582 
C) $1,282 
D) $1,482

Question 14

In general,when prices are rising,use of the FIFO method will result in a lower tax liability than the other methods.

Accepted Answer

A) True 
 B)False

Question 15

Use this inventory information for the month of August to answer the following question.   Assuming that a perpetual inventory system is used,what is ending inventory (rounded)under the average-cost method?

Accepted Answer

A) $3,764 
B) $3,826 
C) $3,968 
D) $3,986 
A) $3,764 
B) $3,826 
C) $3,968 
D) $3,986

Question 16

Inventory turnover is expressed in terms of

Accepted Answer

A) days. 
B) a percentage. 
C) dollars. 
D) times. 
A) days. 
B) a percentage. 
C) dollars. 
D) times.

Question 17

Average inventory equals $200,000,and cost of goods sold equals $442,000.Days' inventory on hand equals

Accepted Answer

A) 165.2 days. 
B) Not enough information available to answer the question. 
C) 154.3 days. 
D) 188.7 days. 
A) 165.2 days. 
B) Not enough information available to answer the question. 
C) 154.3 days. 
D) 188.7 days.

Question 18

What is the chief objective of supply-chain management? How is it accomplished?

Accepted Answer

The chief objective of supply-chain mana

Question 19

Which of the following inventory methods when used for income tax purposes must also be used for reporting purposes?

Accepted Answer

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

Question 20

Use the following information to calculate cost of goods sold under each of three methods: (a)FIFO,(b)LIFO,and (c)average-cost.Assume the periodic inventory system is used.(Show your work.)

Accepted Answer

a.FIFO: $14,760 [(90 × $80)+ (

Which of the following terms best describes the assumption made in applying the four inventory methods?

Use this inventory information for the month of July to answer the following question. Assuming that a periodic inventory system is used,what is cost of goods sold under the average-cost method?

The gross profit method requires that records be kept at both cost and retail.

Use this information to answer the following question. A periodic inventory system is used. Using LIFO,the cost assigned to ending inventory is

Which of the following is an inventory processing system?

Which inventory method generally results in the most realistic balance sheet valuation?

When taking a physical inventory under the retail method,it is necessary to know only the quantity of items on hand.

An understatement of ending inventory in a period will result in an overstatement of gross margin in the next period.

Which costing method will produce different results under perpetual and periodic systems?

Merchandise inventory is valued on the balance sheet at the expected resale price.

A manufacturer's inventory consists of raw materials,work in process,and finished goods.

A company has goods available for sale of $500,000 at retail and $350,000 at cost.It also had sales of $420,000 for the period.What is the estimated cost of ending inventory,using the retail method?

Use this information to answer the following question. A periodic inventory system is used; ending inventory is 147 units. What is ending inventory under FIFO?

In general,when prices are rising,use of the FIFO method will result in a lower tax liability than the other methods.

Use this inventory information for the month of August to answer the following question. Assuming that a perpetual inventory system is used,what is ending inventory (rounded)under the average-cost method?

Inventory turnover is expressed in terms of

Average inventory equals $200,000,and cost of goods sold equals $442,000.Days' inventory on hand equals

What is the chief objective of supply-chain management? How is it accomplished?

Which of the following inventory methods when used for income tax purposes must also be used for reporting purposes?

Use the following information to calculate cost of goods sold under each of three methods: (a)FIFO,(b)LIFO,and (c)average-cost.Assume the periodic inventory system is used.(Show your work.)

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

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Exam 7: Inventories

Which of the following terms best describes the assumption made in applying the four inventory methods?

Use this inventory information for the month of July to answer the following question. Assuming that a periodic inventory system is used,what is cost of goods sold under the average-cost method?

The gross profit method requires that records be kept at both cost and retail.

Use this information to answer the following question. A periodic inventory system is used. Using LIFO,the cost assigned to ending inventory is

Which of the following is an inventory processing system?

Which inventory method generally results in the most realistic balance sheet valuation?

When taking a physical inventory under the retail method,it is necessary to know only the quantity of items on hand.

An understatement of ending inventory in a period will result in an overstatement of gross margin in the next period.

Which costing method will produce different results under perpetual and periodic systems?

Merchandise inventory is valued on the balance sheet at the expected resale price.

A manufacturer's inventory consists of raw materials,work in process,and finished goods.

A company has goods available for sale of $500,000 at retail and $350,000 at cost.It also had sales of $420,000 for the period.What is the estimated cost of ending inventory,using the retail method?

Use this information to answer the following question. A periodic inventory system is used; ending inventory is 147 units. What is ending inventory under FIFO?

In general,when prices are rising,use of the FIFO method will result in a lower tax liability than the other methods.

Use this inventory information for the month of August to answer the following question. Assuming that a perpetual inventory system is used,what is ending inventory (rounded)under the average-cost method?

Inventory turnover is expressed in terms of

Average inventory equals $200,000,and cost of goods sold equals $442,000.Days' inventory on hand equals

What is the chief objective of supply-chain management? How is it accomplished?

Which of the following inventory methods when used for income tax purposes must also be used for reporting purposes?

Use the following information to calculate cost of goods sold under each of three methods: (a)FIFO,(b)LIFO,and (c)average-cost.Assume the periodic inventory system is used.(Show your work.)

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters