ACG 6

Which of these should a company include in its ending inventory?(1) Goods in transit it sold with terms FOB destination(2) Goods in transit it sold with terms FOB shipping point(3) Goods in transit it purchased with terms FOB destination(4) Goods in transit it purchased with terms FOB shipping point.Which of these should be included in its inventory?

1 and 4

A company has the following data: Dec. 1, beg. bal. 150 units $ 825 Dec. 10, purchase 200 units 1,120 Dec. 15, purchase 200 units 1,140 Dec. 28, purchase 150 units 885 $ 3,970 A physical count of merchandise inventory on December 31 reveals that there are 200 units on hand. Using the average-cost method and a periodic inventory system, the amount allocated to the ending inventory on December 31 is

1,134

A company uses the LIFO to measure ending inventory and cost of goods sold. It reported $1,000 of beginning inventory and $1,300 of ending inventory using LIFO. It also reports a LIFO reserve of $100 at the end of the year. The company operates in an inflationary environment. If the company used FIFO instead of LIFO, its ending inventory would be

1,400

A company has the following inventory units and costs: Number of unitsCost per unitBeg. inventory, Jan. 17,000$11Purchase, June 1910,000$12Purchase, Nov. 84,000$13 If 8,000 units are on hand at December 31, what is the cost of the ending inventory under FIFO using a periodic inventory system?

100,000

Sales revenue is $1,000,000, cost of goods purchased is $480,000, ending inventory is $40,000, and cost of goods sold is $540,000. How much is beginning inventory?

100,000

A company has the following data: Dec. 1 Beginning inventory 45 units at $105 per unit Dec. 5 Purchases 200 units at $100 per unit Dec. 21 Purchases 75 units at $115 per unit The company sold 142 units in December. What is the company's cost of goods sold using LIFO and a periodic inventory system?

15,325

A company has the following: Units Cost per unit Dec. 1, Beg. Bal. 40 $41Dec. 14, Purchase 60 $42Dec. 21, Purchase 55 $44 The company sold 100 units at $85 each and has a tax rate of 30%. Assuming that a periodic inventory system is used and operating expenses are $500, what is the company's after tax net income using LIFO? (rounded to whole dollars)

2,583

A company has three categories of inventory in stock: Inventory Item Cost Market value Tin $ 500 $ 650 Stainless Steel 2,000 1,900 Aluminum 350 250 Apply the lower-of-cost-or-market rule to determine the company's ending inventory.

2,650

A company has the following inventory data: July 1 Beginning inventory 30 units at $120 5 Purchases 180 units at $112 14 Sale 120 units 21 Purchases 90 units at $115 30 Sale 84 units Assuming that a periodic inventory system is used, what is the cost of goods sold on a FIFO basis?

23,088

At December 31, Moore Company's inventory records indicated a balance of $360,000. Upon further investigation it was determined that this amount included the following: (1) $56,000 in inventory purchases made by Moore shipped from the seller December 28 terms FOB destination, but not due to be received until January 3. (2) $24,000 in inventory purchases made by Moore shipped from the seller December 28 terms FOB shipping point, but not due to be received until January 2. (3) $8,000 in goods sold by Moore with terms FOB shipping point on December 28. The goods are not expected to reach their destination until January 5. (4) $9,000 in goods sold by Moore with terms FOB destination on December 28. The goods are not expected to reach their destination until January 4. (5) $13,000 of goods received on consignment from Dollywood Company. What is Moore's correct ending inventory balance at December 31?

283,000

At December 31, Moore Company's inventory records indicated a balance of $360,000. Upon further investigation it was determined that this amount included the following: (1) $56,000 in inventory purchases made by Moore shipped from the seller December 28 terms FOB shipping point, but not due to be received until January 2. (2) $24,000 in inventory purchases made by Moore shipped from the seller December 28 terms FOB destination, but not due to be received until January 3. (3) $8,000 in goods sold by Moore with terms FOB destination on December 28. The goods are not expected to reach their destination until January 4. (4) $9,000 in goods sold by Moore with terms FOB shipping point on December 28. The goods are not expected to reach their destination until January 5. (5) $13,000 of goods owned by Moore Company held on consignment by Dollywood Company. What is Moore's correct ending inventory balance at December 31?

327,000

At December 31, Moore Company's inventory records indicated a balance of $400,000. Upon further investigation it was determined that this amount included the following: (1) $56,000 in inventory purchases made by Moore shipped from the seller December 27 terms FOB destination, but not due to be received until January 2. (2) $23,000 in inventory purchases made by Moore shipped from the seller December 27 terms FOB shipping point, but not due to be received until January 3. (3) $6,000 in goods sold by Moore with terms FOB shipping point on December 27. The goods are not expected to reach their destination until January 4. (4) $8,000 in goods sold by Moore with terms FOB destination on December 27. The goods are not expected to reach their destination until January 6. (5) $13,000 of goods owned by Moore Company held on consignment by Dollywood Company. What is Moore's correct ending inventory balance at December 31? Group of answer choices

338,000

A company has the following: 2022 2021 Ending inventory $32,650 $30,490 Cost of goods sold 255,250 261,300 Sales revenue 420,000 480,000 Net income 100,000 80,000 What is the company's days in inventory for 2022? (rounded)

45.1 days

A company has the following: 2022 2021 Ending inventory $37,650 $30,490 Cost of goods sold 255,750 261,300 Sales revenue 480,000 500,000 Net income 100,000 80,000 What is the company's days in inventory for 2022? (rounded)

48.6 days

A company has the following: 2022 2021 Ending inventory $32,650 $30,490 Cost of goods sold 178,000 174,200 Sales revenue 245,000 233,000 Net income 50,000 40,000 What is the company's inventory turnover for 2022? (rounded)

5.6

On December 31, a company's records indicated an inventory balance of $654,000. That amount included $450,000 of inventory on hand and it included the following: (1) $68,000 of inventory sold and shipped by the company on December 28 under the terms FOB destination, and this inventory was received by the buyer on January 6. (2) $98,000 of inventory purchased by the company under the terms FOB destination, and this $98,000 of inventory did not arrive until January 2. (3) $4,000 of inventory held on consignment by the company. (4) $34,000 of inventory placed on consignment by the company that has not been sold by year-end. What is the company's ending inventory balance at December 31?

552,000

A company has the following: Units Cost per unit Dec. 1 Beginning balance 72 $90 Dec. 14 Purchase 124 $94 Dec. 21 Purchase 88 $98 The company sold 204 units at $126 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars)

6,784

A company has the following: Units Cost per unit Dec. 1 Beginning balance 72 $90 Dec. 14 Purchase 124 $94 Dec. 21 Purchase 88 $98 The company sold 204 units at $126 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars) Group of answer choices

6,784

A company has the following data: Dec. 1 Inventory 50 units for $6.00 per unit Dec. 8 Purchase 90 units for $6.30 per unit Dec. 17 Purchase 35 units for $6.20 per unit Dec. 25 Purchase 70 units for $6.40 per unit There are 100 units of ending inventory on hand at December 31. What is the company's ending inventory using LIFO and a periodic inventory system?

615

A company has the following inventory data: Dec. 1 Beginning inventory 20 units at $19 $ 380 Dec. 7 Purchases 70 units at $20 1,400 Dec. 22 Purchases 10 units at $22 220 $ 2,000 There are 32 units of ending inventory on hand at December 31. What is the company's ending inventory using LIFO and a periodic inventory system?

620

A company has the following: Cost Data Market DataTin $22,000 $19,600 Steel 17,000 18,500 Aluminum 26,500 28,600 Using the lower-of-cost-or-market, how much is the value of the ending inventory?

63,100

A company has the following data: Units Per Unit CostInventory, Dec. 1: 5,000 $ 8Purchase, Dec. 12 15,000 10Purchase, Dec. 28 20,000 12 If the company has 7,000 units on hand at December 31, how much is the cost of ending inventory under the average-cost method in a periodic inventory system? Group of answer choices

75,250

A company has the following: 2022 2021 Ending inventory $32,650 $30,490 Cost of goods sold 255,250 261,300 Sales 520,000 560,000 Net income 50,000 40,000 What is the company's inventory turnover for 2022? (rounded)

8.1 times

Sales revenue is $1,000,000, cost of goods purchased is $480,000, beginning inventory is $40,000, and cost of goods sold is $440,000. How much is ending inventory?

80,000

Sales revenue is $1,000,000, cost of goods purchased is $620,000, ending inventory is $60,000, and cost of goods sold is $650,000. How much is beginning inventory?

90,000

A company has the following data: Units Per Unit Cost Inventory, Dec. 1 8,000 $ 8 Purchase, Dec. 12 17,000 10 Purchase, Dec. 28 15,000 12 If the company has 9,000 units on hand at December 31, how much is the cost of ending inventory under the average-cost method in a periodic inventory system?

93,150

Which statement concerning lower of cost or market (LCM) is false?

Under the LCM Basis

When is a physical inventory is taken, what is included?

all of these

Inventory is accounted for at cost. After a company has determined the quantity of units of inventory, it applies unit costs to the quantities to determine the total cost of inventory and the cost of goods sold. Which of the following statements is not a method for computing the cost of inventory?

allowance estimation

A company uses the periodic inventory method. An understatement of ending inventory in one period results in

an overstatement of net income the next period

If the ending inventory is overstated, what occurs?

assets are overstated and stockholders equity is overstated

Which of the following would most likely employ the specific identification method of inventory costing?

car dealer

The lower of cost or market basis of valuing inventories is an example of

conservatism

Inventory costing methods place primary reliance on assumptions about the flow of

costs

When applying the lower of cost or market rule to inventory valuation, market generally means

current replacement cost

Which of these transactions would cause the inventory turnover ratio to increase the most?

decreasing the amount of inventory on hand and increasing sales

In a period of declining inventory costs, which inventory flow assumption will result in the lowest net income?

fifo

Which inventory method usually results in ending inventory being the closest to the current cost of replacing inventory?

fifo

Ownership passes to the buyer when the public carrier accepts the goods if the goods are shipped

fob shipping point

Which of the following is true of the FIFO inventory method?

it assumes that the cost of the earliest units purchased are the first to be allocated to cost of goods sold.

Jerry places goods on consignment with Tom. At the end of the accounting period, the goods have not been sold. Which of the following parties includes in its inventory the consigned goods?

jerry

Which of the following would most likely employ the specific identification method of inventory costing?

jewelry store

In a period of falling prices, which of the following methods will give the largest net income?

lifo

Reporting which one of the following allows analysts to make adjustments to compare companies using different cost flow methods?

lifo reserve

Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods purchased as inventory has increased during the period, then the company using

lifo will have the lowest net income

In periods of rising prices, what will LIFO produce?

lower net income than fifo

Goods held on consignment are

not owned by the company holding them.

A company overstated its ending inventory by $15,000 at the end of the first year. It never noticed the error. As a result, what was the effect on Harold's stockholders equity at the end of the first year and at the end of the second year, respectively?

overstated and properly stated, respectively

Which of the following is an inventory account?

raw materials

When terms are FOB destination

remain with the seller until they reach the buyer

Two companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, which statement is true?

the company using fifo will have the highest ending inventory

The LIFO reserve is

the difference between a company that uses lifo and fifo

A company uses the periodic inventory method. If beginning inventory is understated by $10,000 because the prior's year's ending inventory was understated by $10,000. The company's ending inventory for this period is correct. The effect of this error in the current period is that (i) cost of goods sold is _________________ and (ii) net income is ___________________.

understated and overstated