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Exam 5: Reporting and Analyzing Inventories

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Question 51

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Acme-Jones Corporation uses a weighted average perpetual inventory system. August 2,10 units were purchased at $12 per unit. August 18,15 units were purchased at $14 per unit. August 29,12 units were sold. What was the amount of the cost of goods sold for this sale?

A) $148.00
B) $150.50
C) $158.40
D) $210.00
E) $330.00

F) D) and E)
G) A) and B)

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Question 52

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Given the following information,determine the cost of ending inventory at December 31 using the weighted average perpetual inventory method. December 2: 5 units were purchased at $7 per unit. December 9: 10 units were purchased at $9.40 per unit. December 11: 12 units were sold at $35 per unit. December 15: 20 units were purchased at $10.15 per unit. December 22: 18 units were sold at $35 per unit.

A) $51.75
B) $83.22
C) $41.30
D) $49.75
E) $50.75

F) B) and E)
G) None of the above

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Question 53

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Given the following information,determine the cost of goods sold at November 30 using the weighted average perpetual inventory method. November 3: 15 units were purchased at $8 per unit. November 11: 18 units were purchased at $9.50 per unit. November 15: 15 units were sold at $45 per unit. November 18: 30 units were purchased at $10.75 per unit. November 30: 20 units were sold at $55 per.

If damaged and obsolete goods cannot be sold,they are not included in inventory.

A company had inventory of 14 units at a cost of $18 each on November 1.On November 2,they purchased 19 units at $19 each.On November 6,they purchased 15 units at $20 each.On November 8,they sold 36 units for $63 each.Using the LIFO periodic inventory method,what was the cost of the 36 units sold?

Toys "R" Us had cost of goods sold of $9,421 million,ending inventory of $2,089 million,and average inventory of $1,965 million.Its days' sales in inventory equals:

A company that uses a perpetual inventory system made the following cash purchases and sales.There was no beginning inventory. Prepare the general journal entries to record the March 16 sale using the LIFO inventory valuation method.

A company uses the periodic inventory system and had the following activity during the current monthly period: Using the weighted average inventory method,the company's ending inventory would be reported at:

A company's cost of inventory was $317,500.Due to phenomenal demand for this product,the market value of its inventory increased to $323,000.According to the consistency principle,this company should write up the value of its inventory.

During January,a company that uses a perpetual inventory system had beginning inventory,purchases,and sales as follows.What was the LIFO cost of the company's January 31 inventory?

A company has inventory with a market value of $217,000 and a cost of $241,000.According to the lower of cost or market,the inventory should be written down to $217,000.

Describe the internal controls that must be applied when taking a physical count of inventory.

The reasoning behind the retail inventory method is that if an accurate estimate of the cost-to-retail ratio is made,it can be multiplied by the ending inventory at retail to estimate ending inventory at cost.

A company that uses a perpetual inventory system made the following cash purchases and sales.There was no beginning inventory. Prepare the general journal entry to record the March 16 sale,assuming the weighted average method is used.

The full disclosure principle:

The _____________________ method of assigning costs to inventory and cost of goods sold assumes that the inventory items are sold in the order acquired.

An overstated beginning inventory will ______________ cost of goods sold and _____________ net income.

The inventory turnover ratio is calculated as:

A company made the following merchandise purchases and sales during the month of July: There was no beginning inventory.If the company uses the first-in,first-out perpetual inventory method,what would be the cost of the ending inventory?

Incidental costs most commonly added to the costs of inventory include import duties,freight,storage,and insurance.