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Exam 6: Inventory and Cost of Goods Sold

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Question 31

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In a period of rising costs,which inventory valuation method would a company likely choose if they want to have the highest possible balance of inventory on the balance sheet?

A) Weighted-average cost.
B) FIFO.
C) LIFO.
D) Periodic.

E) C) and D)
F) B) and C)

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Question 32

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Consider the following inventory data: What is the average days in inventory for the year?

A) 126.7 days.
B) 101.4 days.
C) 152.0 days.
D) 111.7 days.

E) A) and C)
F) B) and C)

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Question 33

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Given the information in the table below,what is the company's gross profit?

During 2015,a company sells 400 units of inventory for $85 each.The company has the following inventory purchase transactions for 2015: Calculate ending inventory and cost of goods sold for 2015 assuming the company uses LIFO with a periodic inventory system.

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term placing the letter designating the term in the space provided. -_____ Products that have started the production process but are not yet complete at the end of the period.

During periods when inventory costs are rising,cost of goods sold will most likely be:

Listed below are four terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term placing the letter designating the term in the space provided. -_____ Requires a year-end adjustment for inventory.

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term placing the letter designating the term in the space provided. -_____ Companies that purchase inventories that are primarily in finished form for resale to customers.

At the beginning of 2015,Calston Incorporated reports inventory of $9,000.During 2015,the company purchases additional inventory for $25,000.At the end of 2015,the cost of inventory remaining is $8,000.Calculate cost of goods sold for 2015.

Tyler Toys has beginning inventory for the year of $18,000.During the year,Tyler purchases inventory for $230,000 and has cost of goods sold equal to $233,000.Tyler's ending inventory equals:

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms.Match each phrase with the best term placing the letter designating the term in the space provided. -_____ Cost flow assumption that assumes last units purchased are sold first.

Merchandising companies purchase inventories that are primarily in finished form for resale to customers.

The following information relates to inventory for Shoeless Joe Inc. At what amount would Shoeless report ending inventory using FIFO cost flow assumptions?

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term placing the letter designating the term in the space provided. -_____ Equals cost of goods sold divided by average inventory.

Inventory records for Dunbar Incorporated revealed the following: Dunbar sold 700 units of inventory during the month.Ending inventory assuming weighted-average cost would be (round weighted-average unit cost to four decimals if necessary) :

Northwest Fur Co.started the year with $94,000 of merchandise inventory on hand.During the year,$400,000 in merchandise was purchased on account with credit terms of 1/15,n/45.All discounts were taken.Northwest paid freight-in charges of $7,500.Merchandise with an invoice amount of $5,000 was returned for credit.Cost of goods sold for the year was $380,000.What is ending inventory?

During 2015,a company sells 300 units of inventory for $85 each.The company has the following inventory purchase transactions for 2015: Calculate ending inventory and cost of goods sold for 2015 assuming the company uses FIFO with a periodic inventory system.

Nu Company reported the following data for its first year of operations: What is Nu's gross profit ratio?

During 2015,a company sells 20 units of inventory.The company has the following inventory purchase transactions for 2015: Calculate ending inventory and cost of goods sold for 2015 assuming the company uses FIFO with a periodic inventory system.

Consider the following inventory transactions for September: For the month of September,the company sold 35 units.What is cost of good sold under the weighted-average cost method (round the weighted-average unit cost to four decimals if necessary) ?