Question :
Multiple Choice Questions
60. Damaged and obsolete goods that can be sold: A. Are : 1257941
Multiple Choice Questions
60. Damaged and obsolete goods that can be sold: A. Are never counted as inventory.B. Are included in inventory at their full cost.C. Are included in inventory at their net realizable value.D. Should be disposed of immediately.E. Are assigned a value of zero.
61. Merchandise inventory includes: A. All goods owned by a company and held for sale.B. All goods in transit.C. All goods on consignment.D. Only damaged goods.E. Only non-damaged goods.
62. Goods in transit are included in a purchaser’s inventory: A. At any time during transit.B. When the purchaser is responsible for paying freight charges.C. When the supplier is responsible for freight charges.D. If the goods are shipped FOB destination.E. After the half-way point between the buyer and seller.
63. Consignment goods are: A. Goods shipped by the owner to the consignee who sells the goods for the owner.B. Reported in the consignee’s books as inventory.C. Goods shipped to the consignor who sells the goods for the owner.D. Not reported in the consignor’s inventory since they do not have possession of the inventory.E. Always paid for by the consignee when they take possession.
64. Regardless of the inventory costing system used, cost of goods available for sale must be allocated at the end of the period between A. beginning inventory and net purchases during the period.B. ending inventory and beginning inventory.C. net purchases during the period and ending inventory.D. ending inventory and cost of goods sold.E. beginning inventory and cost of goods sold.
65. On December 31 of the current year, Plunkett Company reported an ending inventory balance of $215,000. The following additional information is also available:
Plunkett sold and shipped goods costing $38,000 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were included in the ending inventory amount of $215,000.
Plunkett purchased goods costing $44,000 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $215,000.
Plunkett’s ending inventory balance of $215,000 included $15,000 of goods being held on consignment from Carole Company. (Plunkett Company is the consignee.)
Plunkett’s ending inventory balance of $215,000 did not include goods costing $95,000 that were shipped to Plunkett on December 27 with shipping terms of FOB destination and were still in transit at year-end.
Based on the above information, the amount that Plunkett should report in ending inventory on December 31 is: A. $194,000B. $209,000C. $200,000D. $171,000E. $156,000
66. Bedrock Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available:
The ending inventory balance of $412,000 included $72,000 of consigned inventory for which Bedrock was the consignor.
The ending inventory balance of $412,000 included $22,000 of office supplies that were stored in the warehouse and were to be used by the company’s supervisors and managers during the coming year.
Based on this information, the correct balance for ending inventory on December 31 is: A. $412,000B. $340,000C. $318,000D. $362,000E. $390,000
67. Buffalo Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available:
The ending inventory balance of $412,000 did not include goods costing $48,000 that were purchased by Buffalo on December 28 and shipped FOB destination on that date. Buffalo did not receive the goods until January 2 of the following year.
The ending inventory balance of $412,000 included damaged goods at their original cost of $38,000. The net realizable value of the damaged goods was $10,000.
Based on this information, the correct balance for ending inventory on December 31 is: A. $374,000B. $384,000C. $460,000D. $422,000E. $438,000
68. Costs included in the Merchandise Inventory account can include all of the following : A. Invoice price minus any discount.B. Transportation-in.C. Storage.D. Insurance.E. Damaged inventory that cannot be sold.
69. Internal controls that should be applied when a business takes a physical count of inventory should include all of the following A. Prenumbered inventory tickets.B. A manager confirms that all inventories are ticketed only once.C. Counters confirm the validity of inventory existence, amounts, and quality.D. Second counts by a different counter.E. Counters of inventory should be those who are responsible for the inventory.
