Ch. 6 Quiz Essay

question

A company just starting business made the following four inventory purchases in June: June 1 150 units @ $5.20/unit = $ 780 June 10 200 units @ $5.85/unit = 1,170 June 15 200 units @ $6.30/unit = 1,260 June 28 150 units @ $6.60/unit = 990 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 (rounded to the nearest dollar) is A. $3,128 B. $1,305 C. $1,073 D. $2,895
answer

C
question

Patterson has the following inventory information: July 1 Beginning Inventory 20 units @ $19 = $ 380 July 7 Purchases 70 units @ $20 = $1,400 July 22 Purchases 10 units @ $23 = $ 230 $2,010 A physical count of merchandise inventory on July 31 reveals that there are 35 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is A. $1,287 B. $1,280 C. $1,330 D. $1,306
answer

C
question

Fetherston Company’s goods in transit at December 31 include: Sales Made Purchases Made (1) FOB Destination (3) FOB Destination (2) FOB Shipping Point (4) FOB Shipping Point Which items should be included in Fetherston’s inventory at December 31? A. (1) and (3) B. (1) and (4) C. (2) and (3) D. (2) and (4)
answer

B
question

A company just starting business made the following four inventory purchases in June: June 1 150 units @ $5.20/unit = $ 780 June 10 200 units @ $5.85/unit = 1,170 June 15 200 units @ $6.30/unit = 1,260 June 28 150 units @ $6.60/unit = 990 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average cost method, the amount allocated to the ending inventory on June 30 is A. $4,200 B. $3,000 C. $1,150 D. $1,200
answer

D
question

Under the lower-of-cost-or-market basis, market is defined as current replacement cost. T/F
answer

True
question

A company just starting business made the following four inventory purchases in June: Total Cost June 1………….150 units……………………… $ 390 June 10………..200 units………………………. 585 June 15………..200 units……………………… 630 June 28………..150 units……………………… 510 $2115 A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using FIFO, the amount allocated to cost of goods sold for June is (round to the nearest dollar) A. $1290 B. $1432 C. $825 D. $683
answer

A
question

A company just starting business made the following four inventory purchases in June: June 1 150 units @ $5.20/unit = $ 780 June 10 200 units @ $5.85/unit = 1,170 June 15 200 units @ $6.30/unit = 1,260 June 28 150 units @ $6.60/unit = 990 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is A. $2,895 B. $1,305 C. $2,545 D. $3,128
answer

A
question

Beginning inventory plus net cost of purchases equals A. Cost of Goods Sold B. Ending Inventory C. Cost of Goods Available for Sale D.Freight In
answer

C
question

Allister Company developed the following information about its inventories in applying the lower-of-cost-or-market (LCM) basis in valuing inventories: Product Cost Market A $112,000 $120,000 B 80,000 76,000 C 155,000 162,000 If Allister applies the LCM basis, the value of the inventory reported on the balance sheet would be: A. $347,000 B. $358,000 C. $343,000 D. $362,000
answer

C
question

Cost of Goods Sold is computed from the following equation: A.Sales + Gross Profit – Ending Inventory + Beginning Inventory B.Beginning Inventory – Cost of Goods Purchased + Ending Inventory C.Sales – Cost of Goods Purchased + Beginning Inventory – Ending Inventory D.Beginning Inventory + Cost of Goods Purchased – Ending Inventory
answer

D

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