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Exam 6: Inventories and Cost of Sales

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Question 31

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A company's inventory records indicate the following data for the month of July: If the company uses the weighted average inventory valuation method and the perpetual inventory system,what would be the cost of its ending inventory?

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Question 32

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The ________________________ ratio reflects how much inventory is available in terms of days' sales.

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Question 33

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A company's inventory records indicate the following data for the month of April: If the company uses the first-in,first-out (FIFO)method and the perpetual inventory system,what is the amount of cost of goods sold for April?

A company's inventory records report the following: On August 15,it sold 30 units.Using the FIFO perpetual inventory method,what is the value of the inventory at August 15 after the sale?

An advantage of the _________________ method of inventory valuation is that it tends to smooth out the effect of erratic changes in costs.

Some companies use the __________________ constraint to avoid assigning incidental costs of acquiring merchandise to inventory. answers can appear in any order

A company's inventory records indicate the following data for the month of January: If the company uses the last-in,first-out perpetual inventory system,what would be the cost of the ending inventory?

A company sells garden hoses and uses the perpetual inventory system to account for its merchandise.The beginning balance of the inventory and its transactions during September were as follows: September 1: Beginning balance of 18 units at $13 each September 12: Purchased 30 units at $14 each September 19: Sold 24 units at $30 selling price each September 20: Purchased 24 units at $17 each September 27: Sold 27 units at $30 selling price each If the ending inventory is reported at $276,what inventory method was used?

Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Lucia Company made two errors: 1) ending inventory at the end of Year 1 was understated by $15,000 and 2) ending inventory at the end of Year 2 was overstated by $6,000.Given this information,the correct cost of goods sold figure for Year 2 would be:

All of the following statements related to goods on consignment are true except:

Goods on consignment are goods that are shipped by the owner,called the _______________,to another party called the ______________________ that will sell the goods for the owner. answers must appear in this order

The _____________________ is a measure of how quickly a merchandiser sells its merchandise inventory.

The full disclosure principle:

Salmone Company reported the following purchases and sales of its only product.Salmone uses a perpetual inventory system.Determine the cost assigned to cost of goods sold using FIFO.

The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:

A company had the following purchases during the current year: On December 31,there were 26 units remaining in ending inventory.Using the LIFO inventory valuation method,what is the cost of the ending inventory?

Oxford Packing Company reported net sales in November of the current year of $1,000,000.At the beginning of November,the company reported beginning inventory of $368,000.Cost of goods purchased during November amounted to $217,500.The company reported ending inventory at the end of November of $226,750. The company's gross profit rate for November of the current year was:

A company's inventory records indicate the following data for the month of April: If the company uses the first-in,first-out (FIFO)method and the perpetual inventory system,what would be the cost of the ending inventory?

The inventory valuation method that tends to smooth out erratic changes in costs is:

A company's inventory records report the following in November of the current year: On November 8,it sold 18 units for $54 each.Using the LIFO perpetual inventory method,what was the amount recorded in the cost of goods sold account for the 18 units sold?