Description of this paper

Accounting Quiz 3

Description

solution


Question

Question;1. The "just-in-time" concept of inventory management is best illustrated by;AnswerA) A clothing manufacturer that sells all of its finished goods before they go out of style.B) A defense contractor that completes its projects within the deadlines set by its customer (the federal government).C) A pharmaceutical firm that consistently brings new products to market ahead of its competitors.D) A homebuilder who has its suppliers deliver lumber and other building materials to the building site the night before these materials will be used by the company's construction crews.;3.812 points Question 2;Use the following to answer questions 2 - 3:At year-end, the perpetual inventory records of Williams Co. indicate 60 units of a particular product in inventory, acquired at the following dates and unit costs:Purchased in August: 30 units at $900 per unitPurchased in November: 30 units at $950 per unitHowever, a complete physical inventory taken at year-end indicates only 50 units of this product actually are on hand.;13. Refer to the above data. Assuming that Williams uses the LIFO flow assumption, it should record this inventory shrinkage by:AnswerA) Debiting Cost of Goods Sold $9,500B) Crediting Cost of Goods Sold $9,000.C) Debiting Cost of Goods Sold $9,000.D) Crediting Cost of Goods Sold $9,500.;3.812 points Question 3;3. Refer to the above data. Assuming that Williams uses the FIFO flow assumption, it should record this inventory shrinkage by;AnswerA) Crediting Cost of Goods Sold $9,500B) Debiting Cost of Goods Sold $9,000.C) Crediting Cost of Goods Sold $9,000.D) Debiting Cost of Goods Sold $9,500.;3.812 points Question 44. On Saturday, June 30, Dalton Stereo sold merchandise to Tom Reed on account. The sales price was $4,200, and the cost of goods sold was $3,100. The sales revenue was recorded immediately, but the entry recording the cost of goods sold was dated Monday, July 2. As a result, net income for June was;AnswerA) Overstated by $4,200.B) Overstated by $3,100.C) Overstated by $1,100.D) Not affected, but the net income for July is understated.;3.812 points Question 5;5. For the last several years Goldschmidt Corporation has operated with a gross profit rate of 35%. On January 1 of the current year the company had on hand inventory with a cost of $300,000. Purchases of merchandise during January amounted to $96,000, and sales for the month were $180,000. With the gross profit method, the estimated inventory at January 31 is;Answer;A) $105,000B) $117,000C) $216,000D) $279,000;3.812 points Question 6;6. The recent annual report of Quest Corporation disclosed a LIFO reserve of $25 million. Assuming that Quest pays income taxes at a rate of 40%, using LIFO has;Answer;A) Saved the company $25 million in income taxes.B) Saved the company $10 million in income taxes.C) Cost the company an additional $15 million in income taxes.D) None of the above, as Quest cannot use LIFO in its income tax return if it uses this method in its financial statements.;3.812 points Question 7;Use the following to answer questions 7 - 9:At the end of last year, Tech-Toys had merchandise costing $120,000 in inventory. During January of the current year, the company purchased merchandise costing $82,000, and sold merchandise that it had purchased at a total cost of $64,000. Tech Toys uses a perpetual inventory system.18. Refer to the above data. The total amount debited to the Inventory account during January was;Answer;A) $0.B) $64,000.C) $82,000.D) $120,000.;3.812 points Question 8;8. Refer to the above data. The balance in the Inventory account at January 31 was:AnswerA) $82,000.B) $120,000.C) $138,000.D) $202,000.;3.812 points Question 9;9. Refer to the above data. The amount of goods transferred from the Inventory account to the Cost of Goods Sold account during January was;AnswerA) $0B) $64,000.C) $82,000.D) $56,000.

 

Paper#43922 | Written in 18-Jul-2015

Price : $22
SiteLock