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Exam 6: Inventories

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Question 41

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Basic inventory data for April 30 are presented below for a business that employs the lower-of-cost-or-market basis of inventory valuation to each category. a) Complete the table. b) Determine the amount of reduction in the inventory at April 30 attributable to market decline.

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a) b) $22...

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Question 42

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What is the amount of the inventory at the end of the year using the FIFO method?

A) $1,685
B) $1,575
C) $1,805
D) $3,585

E) C) and D)
F) A) and C)

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Question 43

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

The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account: Calculate the cost of the ending inventory at June 30, using a) the first-in, first-out FIFO) method and b) the last-in, first-out LIFO) method. Identify the quantity, unit price, and total cost of each lot in the inventory.

Using a LIFO perpetual cost flow, calculate the value of the ending inventory and the cost of merchandise sold for the month of November of Beamer Company using the data below. Calculate the following: a) Inventory valuation at the end of November b) Calculate the cost of merchandise sold for November

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

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work.

Match each description to the appropriate cost flow assumption a-c) . -Prohibited under International Financial Reporting Standards IFRS)

What is the amount of cost of merchandise sold for the year according to the FIFO method?

If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is

Three identical units of merchandise were purchased during March, as shown: $\begin{array} { | c | l | l | l | } \hline & { \text { Steele Plate } } & \text { Units } & \text { Cost } \\\hline \text { Mar. } 3 & \text { Purchase } & 1 & \$ 830 \\\hline 10 & \text { Purchase } & 1 & 840 \\\hline 19 & \text { Purchase } & 1 & 880 \\\hline \text { Total } & & 3 & \$ 2,550 \\\hline\end{array}$ Assume that one unit is sold on March 23 for $1,125. Determine the gross profit for March and ending inventory on March 31 using a) FIFO and b) LIFO.

Unsold consigned merchandise should be included in the consignee's inventory.

One of the two internal control procedures over inventory is to properly report inventory on the financial statements.

Cost flow is in the reverse order in which costs were incurred when using

Match each description to the appropriate cost flow assumption a-c) . -Assigns the same value to all inventory units

Match each description to the appropriate cost flow assumption a-c) . -Widely used for tax purposes

In valuing merchandise for inventory purposes, net realizable value is the estimated selling price less any direct costs of disposal.

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.

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.

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