Question :
90.Which of the following costs would not be included in : 1244401
90.Which of the following costs would not be included in the inventory cost?
a.
Cost of goods held on consignment
b.
Freight-in
c.
Sales tax
d.
Invoice price
91.Which of the following costs usually would not be included in the inventory cost?
a.
Invoice price less purchases discounts
b.
Insurance on goods in transit
c.
Storage costs
d.
Related tariffs
92.Which of the following terms best describes the assumption made in applying the four inventory methods?
a.
Physical flow
b.
Goods flow
c.
Asset flow
d.
Cost flow
93.Which of the following costs normally would be included in the inventory cost?
a.
Storage costs
b.
Applicable taxes
c.
Receiving costs
d.
Ordering costs
94.An assumption about cost flow is necessary
a.
only when the flow of goods cannot be determined.
b.
even when there is no change in the purchase price of inventory.
c.
because prices usually change, and tracking which units have been sold is difficult.
d.
because it is required by income tax regulations.
95.A dealer in expensive furs would probably use which of the following inventory methods?
a.
Average-cost
b.
Specific identification
c.
LIFO
d.
FIFO
96.Use this inventory information for the month of June to answer the following question.
June
1
Beginning inventory
10 units @ $120
5
Purchase
60 units @ $112
14
Sale
40 units
21
Purchase
30 units @ $116
30
Sale
28 units
Assuming that a periodic inventory system is used, what is cost of goods sold on a LIFO basis?
a.
$7,736
b.
$3,704
c.
$7,696
d.
$3,664
97.Use this inventory information for the month of June to answer the following question.
June
1
Beginning inventory
10 units @ $120
5
Purchase
60 units @ $112
14
Sale
40 units
21
Purchase
30 units @ $116
30
Sale
28 units
Assuming that a periodic inventory system is used, what is cost of goods sold under the average-cost method?
a.
$3,712
b.
$7,888
c.
$3,648
d.
$7,752
98.Use this inventory information for the month of June to answer the following question.
June
1
Beginning inventory
10 units @ $120
5
Purchase
60 units @ $112
14
Sale
40 units
21
Purchase
30 units @ $116
30
Sale
28 units
What is cost of goods sold under the specific identification method?
a.
$7,696
b.
More information is needed.
c.
$3,704
d.
$7,736
99.Use this inventory information for the month of May to answer the following question.
May
1
Beginning inventory
20 units @ $76
7
Purchase
70 units @ $80
18
Sale
25 units
22
Purchase
10 units @ $88
29
Sale
40 units
Assuming that a periodic inventory system is used, what is ending inventory (rounded) under the average-cost method?
a.
$5,200
b.
$2,800
c.
$2,848
d.
$5,288
