Question 1

The specific identification inventory method should be used when the inventory consists of identical, low-cost units that are purchased and sold frequently.

Accepted Answer

A) True 
 B)False

Question 2

Assume that three identical units of merchandise are purchased during October, as follows: $$\begin{array} { | l | l | l | l | l | } 
\hline & & & \text { Units } & \text { Cost } \
\hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \
\hline & 12 & \text { Purchase } & 1 & 13 \
\hline & 28 & \text { Purchase } & 1 & 15 \
\hline \text { Total } & & & 3 & \$ 33 \
\hline
\end{array}$$ Assume one unit is sold on October 31 for $28. Determine cost of merchandise sold, gross profit, and ending inventory under the FIFO method.

Accepted Answer

The answer of Assume that three identical units of merchandise...

Question 3

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

Accepted Answer

A)   FIFO
B)   LIFO
C)   weighted average
D)   specific identificationE) A) and C)
F) A) and D)

Question 4

Match each situation to its impact a-c)  on the current year's net income.
-A consignor included merchandise in the hands of the consignee in ending inventory.

Accepted Answer

A)  Net income for the current year will be overstated.
B)  Net income for the current year will be understated.
C)  There will be no error effect on net income.D) A) and B)
E) A) and C)

Question 5

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 September 30. The periodic inventory system is used. Determine the cost of merchandise sold by a) FIFO, b) LIFO, and c) average cost methods.

Accepted Answer

The answer of The units of Product Green-2 available for...

Exam 6: Inventories

The specific identification inventory method should be used when the inventory consists of identical, low-cost units that are purchased and sold frequently.

Correct Answer
verified

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 September 30. The periodic inventory system is used. Determine the cost of merchandise sold by a) FIFO, b) LIFO, and c) average cost methods.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Match each situation to its impact a-c) on the current year's net income. -A consignor included merchandise in the hands of the consignee in ending inventory.

Correct Answer
verified

Exam 6: Inventories

The specific identification inventory method should be used when the inventory consists of identical, low-cost units that are purchased and sold frequently.

Correct AnswerverifiedShow Answer

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 September 30. The periodic inventory system is used. Determine the cost of merchandise sold by a) FIFO, b) LIFO, and c) average cost methods.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match each situation to its impact a-c) on the current year's net income. -A consignor included merchandise in the hands of the consignee in ending inventory.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified