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Exam 6: Inventories

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Question 41

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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.

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a)Cost of merchandise sold:
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Question 42

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The three identical units of Product Basic H are purchased during July,as shown below. Assume one unit sells on July 28 for $45. Determine the gross profit,cost of merchandise sold,and ending inventory on July 31 using (a)first in first out, (b)last in last out, (c)average cost flow methods.

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Question 43

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

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

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.

The use of the lower-of-cost-or-market method of inventory valuation increases net income for the period in which the inventory replacement price declined.

The lower of cost or market is a method of inventory valuation.

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.

During times of rising prices,which of the following is not an accurate statement?

Which of the following measures the relationship between cost of merchandise sold and the amount of inventory carried during the period?

The units of an item available for sale during the year were as follows: There are 48 units of the item in the physical inventory at December 31.The periodic inventory system is used.Determine the inventory cost by (a)the first-in,first-out method, (b)the last-in,first-out method,and (c)the average cost method.Show your work.

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

If merchandise inventory is being valued at cost and the purchase price is steadily falling,which method of costing will yield the largest net income?

The selection of an inventory costing method has no significant impact on the financial statements.

List three different security measures taken by stores to safeguard inventory.

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.

A business using the retail method of inventory costing determines that merchandise inventory at retail is $2,300,000.If the ratio of cost to retail price is 55%,what is the amount of inventory to be reported on the financial statements?

Which of the following is not an example for safeguarding inventory?

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 consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor.