FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Inventories

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

True/False

Review LaterAdd Note

Review Later

FIFO is the inventory costing method that follows the physical flow of the goods.

A) True
B) False

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

The inventory data for an item for November are: 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

E) None of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 73

Essay

Review LaterAdd Note

1. Explain the effect of the following on the financial statements: Goods held on consignment were included in the ending inventory count. Goods purchased FOB shipping point were in transit on the last day of the year. The goods were not counted as part of ending inventory. Goods sold FOB shipping point were in transit on the last day of the year. These goods were not counted as part of ending inventory. 2. What happens if inventory errors are not found and corrected?

The two most widely used methods for determining the cost of inventory are

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?

The following units of an inventory item were available for sale during the year: 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:

The inventory method that assigns the most recent costs to cost of goods sold is

If ending inventory for the year is understated, net income for the year is overstated.

Beginning inventory, purchases, and sales for Product - Weld TM are as follows: Assuming a perpetual inventory system and the last-in, first-out method, determine (a) the cost of the merchandise sold for the September 30 sale and (b) the inventory on September 30.

If Beginning Inventory (BI) + Purchases (P) - Ending Inventory (EI) = Cost of Goods Sold (COGS) , an equivalent equation can be written as?

Assume that three identical units of merchandise are purchased during October, as follows: Assume one unit is sold on October 31 for $28. Determine Cost of Merchandise Sold, Gross Profit, and Ending Inventory under the LIFO method.

Ending inventory is made up of the oldest purchases when a company uses

Fill in the missing amounts from the chart below regarding the calculation of Bean Corporation's estimated inventory using the retail method of estimation.

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 inventory at the end of the year according to the FIFO method?

The units of Product Green-2 available for sale during the year were as follows: There are 17 units of the product in the physical inventory at Sep 30. The periodic inventory system is used. Determine the cost of merchandise sold by (a) FIFO, (b) LIFO, and (c) average cost methods.

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

A company will most likely use an estimated method of determining inventory when

During periods of decreasing costs the use of the LIFO method of costing inventory will result in a lower amount of net income than would result from the use of the FIFO method.

Beginning inventory, purchases, and sales for Product - Weld TM are as follows: Assuming a perpetual inventory system and the first-in, first-out method, determine (a) the cost of the merchandise sold for the September 30 sale and (b) the inventory on September 30.