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125.  Three identical units of merchandise were purchased during May, as follows: Magnesium XP Units Cost May3 Purchase 1 $130 10 Purchase 1 136 19 Purchase 1 142 Total 3 $408 Assume that two units are sold on May 23 for $313 total. Determine the gross profit for May and ending inventoryon May 31 using (a) FIFO, (b) LIFO, and (c) average cost methods. Gross Profit Ending Inventory a. First-in, first-out (FIFO) $47.
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167.  Journalize the following transactions for both Abbott Co. (seller) and Dalton Co. (buyer). Assume both thecompanies use the perpetual inventory system. July 3Abbott Co. sold merchandise on account to Dalton Co., $7,500, terms FOB shippingpoint, net/eom.  The cost of the merchandise sold was $4,400. 5Dalton Co. paid $275 freight charges on.
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148.  Brutus Corporation, a newly formed corporation, has the following transactions during May, its first month ofoperations. May   1   Purchased 500 units @ $25.00 each 4   Purchased 300 units @ $24.00 each 6   Sold 400 units @ $38.00 each 8   Purchased 700 units @ $23.00 each 13   Sold 450 units @ $37.50 each 20   Purchased 250.
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Match each of the following terms (a–h) with the correct definition below. a.  Credit terms b.  FOB destination c.  FOB shipping point d.  Periodic inventory system e.  Perpetual inventory system f.   Inventory shrinkage g.  Single-step income statement h.  Multiple-step income statement 168.  Shipping terms where the ownership of merchandise passes to the buyer when the buyer receives the merchandise. 169. .
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31.A consignor who has goods out on consignment with an agent should include the goods in ending inventory eventhough they are notin the possession of the consignor. a.True b.False 32.The use of the lower-of-cost-or-market method of inventory valuation increases net income for the period in whichthe inventory replacement price declined. a.True b.False 33.The lower-of-cost-or-market method of.
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46.Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the a.customer's ledger b.creditor's ledger c.inventory ledger d.purchase ledger 47.Which document authorizes the purchase of the inventory from an approved vendor? a.the purchase order b.the petty cash voucher c.the receiving report d.the vendor's invoice 48.The primary objectives of control over inventory are a.safeguarding the.
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1.One of the two internal control procedures over inventory is to properly report inventory on the financialstatements. a.True b.False 2.A purchase order establishes an initial record of the receipt of the inventory. a.True b.False 3.A perpetual inventory system is an effective means of control over inventory. a.True b.False 4.A subsidiary inventory ledger can be an aid in maintaining inventory.
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148.  Determine the total value of the merchandise using net realizable value. Item Quantity Selling Price Commission Doll 10 $7 $2 Horse 5 9 3 149.  During the taking of its physical inventory on December 31, Almond Supplies Company incorrectly counted itsinventory as $545,000 instead of the correct amount of $554,000.  Indicate the effects of the misstatement onAlmond Supplies Company’s balance sheet and.
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145.The units of Manganese Plus available for sale during the year were as follows: Mar.   1 Inventory 16 units @ $30 $   480 June  16 Purchase 30 units @ $35 1,050 Nov. 28 Purchase 45units @ $39 1,755 91units $3,285 There are 15 units of the product in the physical inventory at November 30.  The periodic inventory system isused.  Determine the inventory cost by (a) FIFO, (b).
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51.All of the following are documents used for inventory control except a.a petty cash voucher b.a vendor's invoice c.a receiving report d.a purchase order 52.Which document establishes an initial record of the receipt of the inventory? a.receiving report b.vendor's invoice c.purchase order d.petty cash voucher 53.Which of the following is notan example for safeguarding inventory? a.Storing inventory in restricted areas. b.Physical devices.
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11.When using the FIFO inventory costing method, the most recent costs are assigned to the cost of merchandise sold. a.True b.False 12.FIFO is the inventory costing method that follows the physical flow of the goods. a.True b.False 13.Under the LIFO inventory costing method, the most recent costs are assigned to ending inventory. a.True b.False 14.The weighted average inventory cost.
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125.  Beginning inventory, purchases, and sales data for widgets are as follows: April3 Inventory 15 units @ $30 11 Purchase 12 units @ $27 14 Sale 18 units 21 Purchase 7 units @ $25 25 Sale 10 units Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates thecost of merchandise sold and ending inventory using FIFO. Purchases Cost ofMerchandise Sold Inventory Date Qty. UnitCost TotalCost Qty. UnitCost TotalCost Qty. UnitCost TotalCost Balances 126.  Beginning inventory, purchases, and sales data for widgets.
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125.  Beginning inventory, purchases, and sales for an inventory item are as follows: Beginning inventory 150 units @ $755 Sale 120 units First purchase 400 units @ $785 Sale 200 units Second purchase 300 units @ $805 Sale 290 units The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year.What.
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167.  Madison Company’s perpetual inventory records indicate that $875,300 of merchandise should be on hand onOctober 31.  The physical inventory indicates that $781,900 is actually on hand.  Journalize the adjusting entry forthe inventory shrinkage for Madison Company for the year ended October 31. 168.  Selected accounts and amounts appear below.  Journalize.
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148.  Based on the following data, calculate the estimated cost of the merchandise inventory on March 31 using the retailmethod. Cost Retail March 1 Merchandise inventory $225,000 $357,600 March 1–31 Purchases (net) 454,245 612,750 March1–31 Sales 835,000 149.  A business using the retail method of inventory costing determines that merchandise inventory at retail is$2,300,000.  If the ratio of cost to retail price.
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167.  Record the following transactions for Sparky’s Pet Shop using the general journal form provided below.  AssumeSparky’s uses a perpetual inventory system. Omit transaction descriptions from entries: Date Transaction August  1 Purchased $6,000 of merchandise on account, terms 2/10, n/30. 3 Returned $1,500 of merchandise purchased on August 1 due to defects. 7 Recorded cash sales for the.
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167.  Journalize the following transactions for the Evans Company.  Assume the company uses a perpetual inventorysystem. (a)          Sold merchandise for $645.  The cost of merchandise sold was $375. (b)          Sold merchandise for $432 and accepted VISA as the form of payment.The cost of merchandise sold was $195. (c)          Sold merchandise on account for.
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167.  Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45.  The cost of the merchandisesold is $24,500.  Abbey Co. issued a credit memo for $3,600 for merchandise returned that originally cost$1,700.  Gomez Co. paid the invoice within the discount period.  What is the amount of.
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125.  Assume that three identical units of merchandise are purchased during October, as follows: Units Cost October 5 Purchase 1 $ 5 12 Purchase 1 13 28 Purchase 1 15 Total 3 $33 Assume one unit is sold on October 31 for $28.  Determine cost of merchandise sold, gross profit, and endinginventory under the FIFO method. 126.  Three identical units of merchandise were purchased during July, as follows: Date Product Basic H Units Cost July.
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167.  Bargain Wholesalers sells pet supplies to retailers including Pet World Supplies. Bargain Wholesalers uses aperpetual inventory. Journalize the following transactions: May 4, Bargain Wholesalers sells inventory to Pet World Supplies for $8,250.00 withterms 1/10, n/30. The cost of the merchandise is $5,755.00. May 7, Bargain Wholesalers sells an additional $10,985 in.
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148.  On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lowerof cost or market to each inventory item. Show your work. Item Inventory Quantity Unit Cost Price Unit Market Price Product C 300 $ 6 $ 5 Product D 420 12 14 149.  On the basis of the following data, determine.
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148.  Basic inventory data for April 30 are presented below for a business that employs the lower-of-cost-or-marketbasis of inventory valuation to each category. Commodity Inventory Quantity Cost per Unit Market Value per Unit Cost Total Market LCM A 35 $52 $  55 _______ _______ _______ B 20 155 150 _______ _______ _______ C 25 82 85 _______ _______ _______ D 40 58 55 _______ _______ _______ (a)           Complete the table. (b)          Determine the amount of reduction in the inventory at April 30 attributable to marketdecline. 149.  Hampton Co. took a.
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167.  The following data were extracted from the accounting records of Dana Designs for the year ended March 31. Merchandise inventory, April 1 $530,000 Merchandise inventory, March 31 375,000 Purchases 270,000 Purchase returns and allowances 25,000 Purchase discounts 10,000 Sales 770,000 Freight in 3,000 Prepare the cost of merchandise sold section of the income statement for the year ended March 31, using theperiodic method. 168.  Prepare.
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167.  Prepare (a) a single-step income statement, (b) a statement of owner's equity, and (c) a balance sheet in reportform from the following data for Burt Co., taken from the ledger after adjustments on December 31, the end of thefiscal year. Accounts Payable $97,200 Accounts Receivable 64,300 Accumulated Depreciation—Office Equipment 72,750 Accumulated Depreciation—Store Equipment 162,100 Administrative Expenses 56,500 Maeve Burt, Capital 81,750 Cash 53,000 Cost.
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148.  The units of Product Green-2 available for sale during the year were as follows: April 1 Inventory 15 units @ $30 June 16 Purchase 29 units @ $33 Sep. 28 Purchase 45 units @ $35 There are 17 units of the product in the physical inventory at September 30.  The periodic inventory system isused.  Determine the cost of merchandise sold by (a) FIFO, (b) LIFO, and (c) average.
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167.  Using the list of accounts below, construct a chart of accounts for a merchandising business that rents out a portionof its building, and assign account numbers and arranging the accounts in balance sheet and income statement order(“1” for assets, and so on).  Each account number should have three digits. .
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125.  Beginning inventory, purchases, and sales data for tennis rackets are as follows: April3 Inventory 12 units @ $45 11 Purchase 13 units @ $47 14 Sale 18 units 21 Purchase 9 units @ $60 25 Sale 10 units Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the costof merchandise sold and ending inventory using FIFO. Purchases Cost ofMerchandise Sold Inventory Date Qty. UnitCost TotalCost Qty. UnitCost TotalCost Qty. UnitCost TotalCost Balances 126.  Beginning inventory, purchases, and sales data for.
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167.  Selected data from the ledger of Burt Co., after adjustments, on September 30, the end of the fiscal year, are listedas follows: Accounts Receivable $ 39,120 Office Equipment $ 82,700 Accumulated  Depreciation 60,540 Prepaid Insurance 4,680 Administrative Expenses 90,000 Note Payable 77,750 Bob Burt, Capital 85,000 Salaries Payable 3,060 Cost of Merchandise Sold 550,000 Sales 950,000 Bob Burt, Drawing 65,000 Selling Expenses 102,000 Interest Revenue 10,000 Supplies 3,125 Prepare a single-step income statement and a statement of owner's.
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167.  Using the following data taken from Hsu’s Imports Inc. which uses a periodic inventory system, determine the gross profit to be reported on the income statement for the year ended March 31. Merchandise inventory, April 1 $  193,250 Merchandise inventory, March 31 180,100 Purchases 1,079,600 Purchases returns and allowances 51,200 Purchases discounts 18,500 Sales 1,860,000 Freight in 19,250 168.  Using the following data taken from.
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Match each of the following items (a–h) with the appropriate definition below. a.  Freight b.  Delivery Expense c.  Merchandise Inventory d.  Sales discount e.  Purchase Returns and Allowances f.   Debit memo g.  Purchase discount h.  Trade discount 168.  Discount taken by the buyer for early payment of invoice. 169.  Account used to record merchandise on hand under a perpetual inventory.
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148.  Beginning inventory, purchases, and sales data for hammers are as follows: Mar.  3 Inventory 12 units @ $15 11 Purchase 13 units @ $17 14 Sale 18 units 21 Purchase 9 units @ $20 25 Sale 10 units Assuming the business maintains a perpetual inventory system, complete the inventory cards and calculate the costof merchandise sold and ending inventory under the following assumptions: (a)   First-in, first-out Purchases Cost of Merchandise Sold Inventory Date Qty. UnitCost TotalCost Qty. UnitCost TotalCost Qty. UnitCost TotalCost Mar.3 11 14 21 25 Balances (b)    Last-in, first-out Purchases Cost of Merchandise Sold Inventory Date Qty. UnitCost TotalCost Qty. UnitCost TotalCost Qty. UnitCost TotalCost Mar.3 11 14 21 25 Balances 149. .
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125.  Safeguarding inventory from damage or theft is a primary objective for the control of inventory.  If you wererunning a clothing store, name three specific controls you would implement to guard inventory from theft. 126.  List three different security measures taken to safeguard inventory. 127.  Three identical units of merchandise were purchased.
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21.During periods of increasing costs, the use of the FIFO method of costing inventory will yield an inventory amountfor the balance sheet that is higher than LIFO would produce. a.True b.False 22.During periods of rapidly rising costs, the use of the LIFO method results in illusory or inventory profits. a.True b.False 23.During periods of decreasing costs,.
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167.  Journalize the following transactions assuming the perpetual inventory system: July 3Sold merchandise on account for $3,750 including terms.  The cost of themerchandise sold was $2,000. 5Issued credit memo for $1,050 for merchandise returned from sale on July 3.The cost of the merchandise returned was $610. 12Received check for the amount due for.
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148.  The following data were taken from the annual reports of Big Bang Inc., a manufacturer of fireworks, and OrangeInc., a manufacturer of computers. Big Bang, Inc. Orange, Inc. Cost of merchandise sold $830,000 $11,540,000 Inventory, end of year 190,000 320,000 Inventory, beginning of year 240,000 290,000 (a) Determine the (1) inventory turnover and (2) number of days' sales in inventory for.
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111.Which of the following measures the length of time it takes to acquire, sell, and replace inventory? a.inventory turnover b.number of days’ sales in inventory c.retail method of inventory costing d.gross profit method of inventory costing 112.Excess inventory results in all of the following except a.tied-up funds that could be used to improve operations b.lost sales c.increased storage.
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125.  Complete the following table using the perpetual FIFO method of inventory flow. Inventory Valuation—Perpetual FIFO ? ? Date ? Purchased Units ? UnitCost ? UnitsSold ? UnitCost ?Inventory Units Balance ? UnitCosts Inventory DollarBalance July 2 600 $12 Bal. July 5 200 $13 Bal. July 7 300 Bal. July 10 325 $14 Bal. July 12 300150 Bal. July 18 250 $13 Bal. July 22 50205 Bal. July 25 120180 Bal. July 28 330 $15 Bal. July 31 705 EndingBalance ? FIFO INVENTORY VALUATION: 126.  .
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148.  Fill in the missing amounts from the chart below regarding the calculation of Bean Corporation’s estimated inventory using the retail method of estimation. Cost Retail Merchandiseinventory, October 1 $13,687 $19,553 Purchases for October (net) ? 98,344 Merchandise available for sale $82,528 $ ? Ratio of cost to retail price: ? Sales for October ? Merchandise at retail, October 31 $25,340 Merchandise at.
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167.  Using the following data taken from Payton Inc. which uses a periodic inventory system, prepare the cost ofmerchandise sold section of the income statement for the year ended May 31. Merchandise inventory, June 1 $  393,250 Merchandise inventory, May 31 380,100 Purchases 1,579,600 Purchases returns and allowances 81,200 Purchases discounts 16,500 Sales 2,060,000 Freight in 59,250 168.  Using the following data taken from Connor.
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91.During times of rising prices, which of the following is notan accurate statement? a.Average costing will yield results that are between those of FIFO and LIFO. b.LIFO will result in a higher cost of merchandise sold than FIFO. c.FIFO will result in a higher net income than LIFO. d.LIFO will result in higher income.
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148.  Beginning inventory, purchases and sales data for T-shirts are as follows: April3 Inventory 24 units @ $10 11 Purchase 26 units @ $12 14 Sale 36 units 21 Purchase 18 units @ $15 25 Sale 20 units Assuming the business maintains a periodic inventory system; calculate the cost of merchandise sold and endinginventory under the following assumptions: a.    FIFO b.    LIFO c.  Average cost (round cost of merchandise sold and ending inventory to the.
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148.  The units of an item available for sale during the year were as follows: Jan.1  Inventory25 units at $45 Mar.4  Purchase15 units at $50 June7  Purchase35 units at $58 Nov.  15  Purchase20 units at $65 There are 30 units of the item in the physical inventory at December 31.  The periodic inventory system isused. .
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148.  Describe three inventory cost flow assumptions and how they impact the financial statements. 149.  The following data regarding purchases and sales of a commodity were taken from the related perpetual inventoryaccount: June  1 Balance 25 units at $60 6 Sale 20 units 8 Purchase 20 units at $61 16 Sale 10 units 20 Purchase 20 units at $62 23 Sale 25 units 30 Purchase 15 units at $63 Calculate the cost of.
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125.  The units of an item available for sale during the year were as follows: January10 Inventory 27 units @ $90 February27 Purchase 54 units @ $98 July11 Purchase 63 units @ $106 November  13 Purchase 36 units @ $115 There are 50 units of the item in the physical inventory at December 31.  The periodic inventory system is used.Determine the ending inventory.
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71.Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for thesale of May 20 using the FIFO inventory cost method. a. $120 b. $180 c. $136 d. $144 72.Assuming that the company uses the perpetual inventory system, determine the ending inventory value for themonth of May using the FIFO.
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61.The inventory costing method that reports the most current prices in ending inventory is a.FIFO b.specific identification c.LIFO d.average cost 62.The inventory costing method that reports the earliest costs in ending inventory is a.FIFO b.LIFO c.weighted average d.specific identification 63.Which of the following companies would be more likely to use the specific identification inventory costing method? a.Gordon’s Jewelers b.Lowe’s c.Best Buy d.Walmart Addison, Inc. uses.
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101.Merchandise inventory at the end of the year was understated.  Which of the following statements correctly statesthe effect of the error? a.net income is understated b.net income is overstated c.cost of merchandise sold is understated d.merchandise inventory reported on the balance sheet is overstated 102.Merchandise inventory at the end of the year is overstated. Which.
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