Question :
140. When costs to purchase inventory regularly decline, which method of : 1257917
140. When costs to purchase inventory regularly decline, which method of inventory costing will yield the lowest cost of goods sold?A. FIFO.B. LIFO.C. Weighted average.D. Specific identification.E. Gross margin.
141. IFRS reporting currently does not allow which method of inventory costing?A. Specific identification.B. FIFO.C. LIFO.D. Weighted average.E. Lower of cost or market.
142. All of the following statements regarding U.S. GAAP and IFRSare true :A. Both U.S. GAAP and IFRS include broad and similar guidance for the items and costs making up merchandise inventory.B. For both U.S. GAAP and IFRS, merchandise inventory includes all items that a company owns and holds for sale.C. Both U.S. GAAP and IFRS require companies to write down inventory when its value falls below the cost presently recorded.D. Both U.S. GAAP and IFRS allow reversals of write downs up to the original acquisition cost.E. With limited exceptions, neither U.S. GAAP nor IFRS allow inventory to be adjusted upward beyond the original cost.
143. Sandoval needs to determine its year-end inventory. The warehouse contains 20,000 units, of which 3,000 were damaged by flood and are not sellable. Another 2,000 units were purchased from Markor Company, FOB shipping point, and are currently in transit. The company also consigns goods and has 4,000 units at a consignee’s location. How many units should Sandoval include in its year-end inventory?A. 29,000 B. 21,000C. 23,000D. 19,000E. 26,000
20,000 – 3,000 + 2,000 + 4,000 = 23,000
144. Salmone Company reported the following purchases and sales of its only product. Salmone uses a inventory system. Determine the cost assigned to the ending inventory using FIFO.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
May 1
Beginning Inventory
150 units @ $10.00
5
Purchase
220 units @ $12.00
10
Sales
140 units @ $20.00
15
Purchase
100 units @ $13.00
24
Sales
150 units @ $21.00
A. $2,260B. $3,180C. $1,860D. $3,580E. $2,100
145. Salmone Company reported the following purchases and sales of its only product. Salmone uses a inventory system. Determine the cost assigned to cost of goods sold using FIFO.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
May 1
Beginning Inventory
150 units @ $10.00
5
Purchase
220 units @ $12.00
10
Sales
140 units @ $20.00
15
Purchase
100 units @ $13.00
24
Sales
150 units @ $21.00
A. $2,260 B. $3,180C. $1,860 D. $3,580E. $2,100
(140 * $10 = $1,400) + [(10 * $10 = $100) + (140 * $12 = $1,680)] = $3,180
146. Salmone Company reported the following purchases and sales of its only product. Salmone uses a inventory system. Determine the cost assigned to ending inventory using LIFO.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
May 1
Beginning Inventory
150 units @ $10.00
5
Purchase
220 units @ $12.00
10
Sales
140 units @ $20.00
15
Purchase
100 units @ $13.00
24
Sales
150 units @ $21.00
A. $2,260 B. $3,180C. $1,860 D. $3,580E. $2,100
(150 * $10 = $1,500) + (30 * $12 = $360) = $1,860
147. Salmone Company reported the following purchases and sales for its only product. Salmone uses a inventory system. Determine the cost assigned to cost of goods sold using LIFO.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
May 1
Beginning Inventory
150 units @ $10.00
5
Purchase
220 units @ $12.00
10
Sales
140 units @ $20.00
15
Purchase
100 units @ $13.00
24
Sales
150 units @ $21.00
A. $2,260 B. $3,180C. $1,860 D. $3,580E. $2,100
(140 * $12 = $1,680) + [(100 * $13 = $1,300) + (50 * $12 = $600)] = $3,580
148. On September 1 of the current year, Scots Company experienced a flood that destroyed the company’s entire inventory. Because the company had not completed its month end reporting for August,it must estimate the amount of inventory lost using the gross profit method. At the beginning of August, the company reported beginning inventory of $215,450. Inventory purchased during August was $192,530. Sales for the month of August were $542,500. Assuming the company’s typical gross profit ratio is 40%, estimate the amount of inventory destroyed in the flood. A. $87,480B. $134,520C. $109,980D. $82,480E. $81,480
149. Use the following information for Shafer Company to compute inventory turnover for 2015.
2015
2014
Net sales
$647,500
$582,000
Cost of goods sold
389,500
360,840
Ending inventory
76,700
79,380
A. 9.98B. 5.08C. 4.99D. 8.30E. 8.44
150. Use the following information for Davis Company to compute inventory turnover for 2015.
2015
2014
Cost of goods sold
279,500
291,800
Ending inventory
47,700
49,350
A. 5.86B. 5.76C. 5.67D. 11.77E. 5.89
151. Use the following information for EphronCompany to compute days’ sales in inventory for 2015.
2015
2014
Net sales
$547,500
$572,000
Cost of goods sold
348,500
370,840
Ending inventory
75,700
81,400
A. 52.4B. 82.3C. 50.5D. 76.8E. 79.3
