Question 1

Taking a physical count of inventory

Accepted Answer

A)   is not necessary when a periodic inventory system is used
B)   should be done near year-end
C)   has no internal control relevance
D)   is not necessary when a perpetual inventory system is usedE) A) and B)
F) None of the above

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

If Addison uses LIFO,the cost of the ending inventory on September 30 is

Accepted Answer

A)   $800
B)   $650
C)   $750
D)   $700E) A) and C)
F) All of the above

Question 4

Assuming that the company uses the perpetual inventory system,determine the ending inventory value for the month of May using the FIFO inventory cost method.

Accepted Answer

A)   $364
B)   $372
C)   $324
D)   $320E) B) and C)
F) A) and B)

Question 5

The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:
​

Accepted Answer

The answer of The following data regarding purchases and sales...

Question 6

Inventory at the end of the year is overstated.Which of the following statements correctly states the effect of the error?

Accepted Answer

A)   stockholders' equity is overstated
B)   cost of goods sold is overstated
C)   gross profit is understated
D)   net income is understatedE) A) and D)
F) All of the above

Question 7

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?

Accepted Answer

A)   $655
B)   $620
C)   $690
D)   $659E) All of the above
F) C) and D)

Question 8

Stevens Company started the year with an inventory cost of $145,000.During the month of January,Stevens purchased inventory that cost $53,000.January sales totaled $140,000.Estimated gross profit is 35%.The estimated ending inventory as of January 31 is

Accepted Answer

A)   $58,000
B)   $91,000
C)   $107,000
D)   $69,300E) C) and D)
F) None of the above

Question 9

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 goods sold and ending inventory using LIFO.

Accepted Answer

The answer of Beginning inventory,purchases,and sales data for widgets are...

Question 10

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

Accepted Answer

A)   FIFO
B)   LIFO
C)   weighted average
D)   specific identificationE) None of the above
F) All of the above

Question 11

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

Accepted Answer

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

Question 12

A physical inventory should be taken at the end of every month.

Accepted Answer

A) True 
 B)False

Question 13

Under the periodic inventory system,the inventory account continuously discloses the amount of inventory on hand.

Accepted Answer

A) True 
 B)False

Question 14

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 goods sold by (a)FIFO,(b)LIFO,and (c)average cost methods.

Accepted Answer

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

Question 15

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

Accepted Answer

A)   $1,380
B)   $1,375
C)   $1,510
D)   $1,250E) C) and D)
F) None of the above

Question 16

The method of estimating inventory that uses records of the selling prices of the merchandise is called

Accepted Answer

A)   retail method
B)   gross profit method
C)   inventory turnover method
D)   average cost methodE) None of the above
F) A) and B)

Question 17

Use of the retail inventory method requires taking a physical count of inventory.

Accepted Answer

A) True 
 B)False

Question 18

If the estimated rate of gross profit is 30%,what is the estimated cost of the inventory on September 30,based on the following data? ​

Accepted Answer

A)   $320,000
B)   $192,500
C)   $275,000
D)   $105,000E) B) and C)
F) B) and D)

Question 19

Garrison Company uses the retail method of inventory costing.It started the year with an inventory that had a retail cost of $45,000.During the year,Garrison purchased an inventory with a retail sales value of $300,000.After performing a physical inventory,Garrison calculated the inventory at retail to be $80,000.The markup is 100% of cost.Determine the ending inventory at its estimated cost. ​

Accepted Answer

A)   $160,000
B)   $80,000
C)   $40,000
D)   $45,000E) A) and D)
F) A) and B)

Question 20

Which of the following is used to analyze the efficiency and effectiveness of inventory management?

Accepted Answer

A)   inventory turnover only
B)   number of days' sales in inventory only
C)   both inventory turnover and number of days' sales in inventory
D)   neither inventory turnover or number of days' sales in inventoryE) None of the above
F) B) and D)

Exam 6: Inventories

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 goods sold and ending inventory using LIFO.

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 goods sold by (a)FIFO,(b)LIFO,and (c)average cost methods.

Correct Answer
verified

If the estimated rate of gross profit is 30%,what is the estimated cost of the inventory on September 30,based on the following data?

Correct Answer
verified

Taking a physical count of inventory

Correct Answer
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Use of the retail inventory method requires taking a physical count of inventory.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Stevens Company started the year with an inventory cost of $145,000.During the month of January,Stevens purchased inventory that cost $53,000.January sales totaled $140,000.Estimated gross profit is 35%.The estimated ending inventory as of January 31 is

Correct Answer
verified

Inventory at the end of the year is overstated.Which of the following statements correctly states the effect of the error?

Correct Answer
verified

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?

Correct Answer
verified

If Addison uses LIFO,the cost of the ending inventory on September 30 is

Correct Answer
verified

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

Correct Answer
verified

A physical inventory should be taken at the end of every month.

Correct Answer
verified

The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:

Correct Answer
verified

The method of estimating inventory that uses records of the selling prices of the merchandise is called

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
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Which of the following is used to analyze the efficiency and effectiveness of inventory management?

Correct Answer
verified

Under the periodic inventory system,the inventory account continuously discloses the amount of inventory on hand.

Correct Answer
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Assuming that the company uses the perpetual inventory system,determine the ending inventory value for the month of May using the FIFO inventory cost method.

Correct Answer
verified

Exam 6: Inventories

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 goods sold and ending inventory using LIFO.

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 goods sold by (a)FIFO,(b)LIFO,and (c)average cost methods.

Correct AnswerverifiedShow Answer

If the estimated rate of gross profit is 30%,what is the estimated cost of the inventory on September 30,based on the following data? ​

Correct AnswerverifiedShow Answer

Taking a physical count of inventory

Correct AnswerverifiedShow Answer

Use of the retail inventory method requires taking a physical count of inventory.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Stevens Company started the year with an inventory cost of $145,000.During the month of January,Stevens purchased inventory that cost $53,000.January sales totaled $140,000.Estimated gross profit is 35%.The estimated ending inventory as of January 31 is

Correct AnswerverifiedShow Answer

Inventory at the end of the year is overstated.Which of the following statements correctly states the effect of the error?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

If Addison uses LIFO,the cost of the ending inventory on September 30 is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A physical inventory should be taken at the end of every month.

Correct AnswerverifiedShow Answer

The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account: ​

Correct AnswerverifiedShow Answer

The method of estimating inventory that uses records of the selling prices of the merchandise is called

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is used to analyze the efficiency and effectiveness of inventory management?

Correct AnswerverifiedShow Answer

Under the periodic inventory system,the inventory account continuously discloses the amount of inventory on hand.

Correct AnswerverifiedShow Answer

Assuming that the company uses the perpetual inventory system,determine the ending inventory value for the month of May using the FIFO inventory cost method.

Correct AnswerverifiedShow Answer

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 goods sold and ending inventory using LIFO.

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 goods sold by (a)FIFO,(b)LIFO,and (c)average cost methods.

Correct Answer
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If the estimated rate of gross profit is 30%,what is the estimated cost of the inventory on September 30,based on the following data?

Correct Answer
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The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:

Correct Answer
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