ACC 301 Chapter 8 quiz

$11.40.

A company purchased inventory as follows: 150 units at $10 350 units at $12 The average unit cost for inventory is A. $12.00. B. $11.00. C. $10.00. D. $11.40.

A. beginning inventory + cost of goods purchased - ending inventory.

Cost of goods sold is computed from the following equation: A. beginning inventory + cost of goods purchased - ending inventory. B. sales + gross profit - ending inventory + beginning inventory. C. beginning inventory - cost of goods purchased + ending inventory. D. sales - cost of goods purchased + beginning inventory - ending inventory.

A. $103,000

Eneri Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $9.20 Purchases: June 18 4,500 8.00 November 8 3,000 7.00 A physical inventory on December 31 shows 2,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. What is the cost of goods available for sale? A. $103,000 B. $162,500 C. $84,600 D. $89,000

to determine ownership of the goods.

For companies that use a perpetual inventory system, all of the following are purposes for taking a physical inventory except: A. to determine losses due to employee theft. B. to check the accuracy of the records. C. to determine ownership of the goods. D. to determine the amount of wasted raw materials.

COGS: overstatement, Net Income: understatement

If the beginning inventory for 2017 is overstated, the effects of this error on cost of goods sold for 2017 and net income for 2017 are A. COGS: understatement, Net Income: understatement B. COGS: understatement, Net Income: overstatement C. COGS: overstatement, Net Income: understatement D. COGS: overstatement, Net Iincome: overstatement

ending inventory and cost of goods sold.

The cost of goods available for sale is allocated between A. ending inventory and cost of goods sold. B. beginning inventory and ending inventory. C. beginning inventory and cost of goods on hand. D. beginning inventory and cost of goods purchased.

net income.

Understating beginning inventory will understate A. cost of goods sold. B. net income. C. owner's equity. D. assets.

The cost of goods held on consignment from other companies.

Valuation of inventories requires the determination of all of the following except: A. The cost of goods held on consignment from other companies. B. The cost flow assumption to be adopted. C. The costs to be included in inventory. D. The physical goods to be included in inventory.

All of these answer choices are correct.

When using a perpetual inventory system, Answers: A. no Purchases account is used. B. a Cost of Goods Sold account is used. C. two entries are required to record a sale. D. All of these answer choices are correct.

Goods in transit from another company shipped FOB shipping point

Which of the following should be included in the physical inventory of a company? A. Goods held on consignment from another company. B. Goods in transit to another company shipped FOB shipping point. C. Goods in transit from another company shipped FOB shipping point. D. Both b and c above.