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acc100 quiz 6




Question;Question;1;The factor which determines whether or not goods should be;included in a physical count of inventory is;legal title.;physical possession.;management's judgment.;whether or not the purchase price has been paid.;Question;2;Understating;beginning inventory will understate;cost of goods sold.;owner's equity.;assets.;net income.;Question;3;Inventory;is reported in the financial statements at;the higher-of-cost-or-market.;market.;the;lower-of-cost-or-market.;cost.;Question 4;Your answer has been saved and sent for grading. See Gradebook;for score details.;Which of;the following statements is correct with respect to inventories?;It is generally good business management to sell the most;recently acquired goods first.;FIFO seldom coincides with the actual physical flow of;inventory.;The FIFO method assumes that the costs of the earliest goods;acquired are the last to be sold.;Under FIFO, the ending inventory;is based on the latest units purchased.;Question 5;In a manufacturing business, inventory that is ready for sale is;called;work in process inventory.;finished goods inventory.;store supplies inventory.;raw materials inventory.;Question 6;Question 6;Eneri Company's inventory records show the following data;Units;Unit Cost;Inventory;January 1;10,000;$9.20;Purchases;June 18;9,000;8.00;November 8;6,000;7.00;A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the;units for $13 each. The company has an effective tax rate of 20%. Eneri uses;the periodic inventory method. Under the LIFO method, cost of goods sold is;$169,200.;$173,040.;$178,000.;$28,000.;Question;7;Switzer;Inc. has 8 computers which have been part of the inventory for over two years.;Each computer cost $600 and originally retailed for $900. At the statement;date, each computer has a current replacement cost of $400. How much loss;should Switzer, Inc., record for the year?;$2,400.;$1,600.;$3,200.;$4,000.;Question 8;The;following information was available for Pete Company at December 31, 2014;beginning inventory $90,000, ending inventory $70,000, cost of goods sold;$984,000, and sales $1,350,000. Pete?s inventory turnover ratio in 2014 was;16.9times.;14.1times.;12.3times.;10.9times.;Question 9;A company purchased inventory as follows;150 units at $5;350 units at $6;The;average unit cost for inventory is;$5.70.;$6.00.;$5.00.;$5.50.;Question 10;Netta Shutters has the following inventory information.;July 1;Inventory;30 units @ $8.00;8;Purchase;120 units @ $8.30;17;Purchase;60 units @ $8.40;25;Purchase;90 units @ $8.80;A physical count of merchandise inventory on November 30 reveals that there are;90 units on hand. Assume a periodic inventory system is used. Ending inventory;under FIFO is;$1,740.;$738.;$1,794.;$792.


Paper#38045 | Written in 18-Jul-2015

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