Question :
90.Giorgio had cost of goods sold of $9,421 million, ending : 1258830
90.Giorgio had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory of $1,965 million. Its inventory turnover equals:
A.0.21.
B.4.51.
C.4.79.
D.76.1 days.
E.80.9 days.
Inventory Turnover = Cost of Goods Sold/Average InventoryInventory Turnover = $9,421/$1,965 = 4.79 times
91.Perfection Company had cost of goods sold of $853,000, ending inventory of $70,500, and average inventory of $71,600. Its inventory turnover equals:
A.11.9.
B.1.0.
C.6.0.
D.30.6.
E.12.0.
Inventory Turnover = Cost of Goods Sold/Average InventoryInventory Turnover = $853,000/$71,600 = 11.9 times
92.Beckenworth 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.0.21.
B.4.51.
C.4.79.
D.76.1 days.
E.80.9 days.
Days’ Sales in Inventory = Ending Inventory/Cost of Goods Sold * 365Days’ Sales in Inventory = $2,089/$9,421 * 365 = 80.9 days
93.Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. Its days’ sales in inventory equals:
A.120.
B.104.
C.60.
D.35.
E.180.
Days’ Sales in Inventory = Ending Inventory/Cost of Goods Sold * 365Days’ Sales in Inventory = $2.2/$6.7 * 365 = 120 days
94.Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except:
A.LIFO method.
B.FIFO method.
C.Specific identification method.
D.Weighted average method.
E.Retail method.
95.Decisions management must make in accounting for inventory cost include all of the following except:
A.Costing method.
B.Perpetual or periodic inventory system.
C.Customer demand for inventory.
D.Use of market values or other estimates.
E.Items included in inventory and their costs.
96.The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:
A.Weighted average inventory method.
B.First-in, first-out method.
C.Last-in, first-out method.
D.Specific identification method.
E.Retail inventory method.
97.A company had the following purchases during the current year:
January:10 units at $120
February:20 units at $130
May:15 units at $140
September:12 units at $150
November:10 units at $160
On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory?
A.$3,500.
B.$3,800.
C.$3,960.
D.$3,280.
E.$3,640.
Ending Inventory
2@$120=$240
4@$130=520
6@$140=840
4@$150=600
10@$160=1,600
26 units$3,800
98.A company had the following purchases during the current year:
January:10 units at $120
February:20 units at $125
May:15 units at $130
September:12 units at $135
November:10 units at $140
On December 31, there were 26 units remaining in ending inventory. Using the FIFO inventory valuation method, what is the cost of the ending inventory?
A.$3,280.
B.$3,200.
C.$3,445.
D.$3,540.
E.$3,640.
Ending Inventory
4@$130=520
12@$135=1,620
10@$140=1,400
26 units$3,540
99.A company had the following purchases during the current year:
January:10 units at $120
February:20 units at $125
May:15 units at $130
September:12 units at $135
November:10 units at $140
On December 31, there were 26 units remaining in ending inventory. Using the LIFO inventory valuation method, what is the cost of the ending inventory?
A.$3,280.
B.$3,200.
C.$3,445.
D.$3,540.
E.$3,640.
Ending Inventory
10@$120=1,200
16@$125=2,000
26 units$3,200
