Question :
21) Sterling Supply uses a periodic inventory system. Sterling Supply : 1171062
21) Sterling Supply uses a periodic inventory system. Sterling Supply sold 25 globes during March. Other data for March includes:
Mar. 1
Balance
30 @ $12
11
Purchased
20 @ $15
25
Purchased
10 @ $10
Round per unit cost to two decimal places. Ending inventory under the weighted-average method is:
A) $281.25.
B) $155.00.
C) $443.45.
D) $168.75.
22) Sterling Supply uses a periodic inventory system. Sterling Supply sold 25 globes during March. Other data for March includes:
Mar. 1
Balance
30 @ $12
11
Purchased
20 @ $15
25
Purchased
10 @ $10
Round per unit cost to two decimal places. Cost of goods sold under the weighted-average method is:
A) $281.25.
B) $155.00.
C) $316.75.
D) $168.75.
23) Hall Novelty Shop uses a periodic inventory system. It sold 65 balloons during April. Other data for April includes:
Apr. 1
Balance
40 @ $2.00
11
Purchased
40 @ $4.00
25
Purchased
20 @ $6.00
Cost of goods sold under the weighted-average method (rounded to the nearest dollar) is:
A) $52.
B) $432.
C) $234.
D) $48.
24) Goods that are consigned to another party:
A) belong to the other party because title has passed.
B) belong to the company that has consigned them.
C) belong to the consignee.
D) Both B and C are correct.
25) Which of the following should NOT be included in inventory costs?
A) Goods that are not resalable
B) Goods on consignment to you
C) Goods for sale at a value that is greater than cost
D) Both A and B are correct.
26) Which of the following goods should Pin Department Store include in its December 31 count?
A) Goods available for sale in the warehouse
B) Goods in transit purchased F.O.B. shipping point
C) Goods that have been consigned to Dalton Brothers
D) All of the Above.
27) Which of the following goods should Nassen Company include in its December 31, 201X, count?
A) Goods held on consignment for Acorn Supply
B) Goods sold to Crishom, F.O.B. destination, and arrival date scheduled for January 5
C) Goods that are not salable
D) Goods in transit purchased F.O.B. destination
28) Goods on consignment to another company:
A) belong to the consignee because title has passed.
B) belong to the consignor because title has passed.
C) belong to the consignor because the consignee is merely selling them for the consignor.
D) belong to the consignee because the consignor is merely selling them for the consignee.
29) Which is NOT a good reason to use the specific invoice method?
A) The flow of goods and flow of cost are the same.
B) It can be used with goods with large sales volume.
C) It is simple to use if there is a small amount of high-cost unique goods.
D) Costs are matched with the sales they helped to produce.
30) Under the specific invoice method, costs are matched with individual sale items.
