Question 1

A business using the retail method of inventory costing determines that merchandise inventory at retail is $2,300,000. If the ratio of cost to retail price is 55%, what is the amount of inventory to be reported on the financial statements?

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Question 2

Brutus Corporation, a newly formed corporation, has the following transactions during May, 2011, it's first month of operation.
  Calculate total sales, cost of goods sold, gross profit and ending inventory using each of the following inventory methods:
1. FIFO Perpetual
2. FIFO Periodic
3. LIFO Perpetual
4. LIFO Periodic
5. Average Cost Periodic (round average to nearest cent)
Total Sales (not dependant on inventory method):

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Question 3

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work.
 $\begin{array} { | l | l | l | l | } 
\hline \text { Item } & \text { Inventory Quantity } & \text { Unit Cost Price } & \text { Unit Market Price } \
\hline \text { Product C } & 420 & \$ 6 & \$ 5 \
\hline \text { Product D } & 370 & 12 & 14 \
\hline
\end{array}$

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Question 4

Based upon the following data estimate the cost of ending merchandise inventory:

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Question 5

The units of an item available for sale during the year were as follows:
  There are 30 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost using FIFO.

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Question 6

Describe three inventory cost flow assumptions and how they impact the financial statements.

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Question 7

Beginning inventory, purchases and sales data for T-shirts are as follows:
  Assuming the business maintains a periodic inventory system, calculate the cost of merchandise sold and ending inventory under the following assumptions:
a. FIFO
b. LIFO
c. Average cost (round cost of merchandise sold and ending inventory to the nearest dollar)

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The answer of Beginning inventory, purchases and sales data for...

Question 8

Determine the total value of the merchandise using Net Realizable Value:
 $\begin{array} { | l | l | l | l | } 
\hline \text { Item } & \text { Quantity } & \text { Selling Price } & \text { Commission } \
 \hline \text { Doll } & 10 & \$ 7 & \$ 2 \
\hline \text { Horse } & 5 & 9 & 3 \
\hline
\end{array}$

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The answer of Determine the total value of the merchandise...

Question 9

The units of an item available for sale during the year were as follows:
  There are 19 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost using LIFO.

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Question 10

While taking a physical inventory, a company counts their inventory as less than the actual amount on hand. How will this error affect the income statement?

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Question 11

Fill in the missing amounts from the chart below regarding the calculation of Bean Corporation's estimated inventory using the retail method of estimation.

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Question 12

Based on the following data, calculate the estimated cost of the merchandise inventory on March 31 using the retail method.

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Question 13

List the internal control objectives illustrated by the following:

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Question 14

The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:

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Question 15

During the taking of its physical inventory on December 31, 2011, Gentry Supplies Company incorrectly counted its inventory as $245,000 instead of the correct amount of $254,000. Indicate the affect of the misstatement on Gentry Supplies Company's balance sheet and income statement for the year ended December 31, 2011.

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Question 16

The beginning inventory and purchases of an item for the period were as follows:
  The company uses the periodic system, and there were 15 units in the inventory at the end of the period. Determine the cost of the 15 units in the inventory by each of the following methods, presenting details of your computations: (a) first-in, first-out; (b) last-in, first-out; (c) average cost. Do not round your intermediate calculations. Round your final answer to two decimal places.

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The answer of The beginning inventory and purchases of an...

Question 17

The units of Product Green-2 available for sale during the year were as follows:
  There are 17 units of the product in the physical inventory at Sep 30. The periodic inventory system is used. Determine the cost of merchandise sold by (a) FIFO, (b) LIFO, and (c) average cost methods.

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Question 18

The following data were taken from the annual reports of Jong Inc., a manufacturer of fireworks, and Hobson Inc., a manufacturer of computers.
  (a) Determine the (1) inventory turnover and (2) number of day's sales in inventory for Jong and Hobson. Round your answer to two decimal places.
(b) How would you expect these measures to compare between the companies? Why?

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Question 19

Beginning inventory, purchases and sales data for hammers are as follows:
  Assuming the business maintains a perpetual inventory system, complete the inventory cards and calculate the cost of merchandise sold and ending inventory under the following assumptions:
a. First-in, first-out
  b. Last-in, first-out

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Question 20

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work.

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