Question 1

The following information was extracted from the Stone Company's records.
Gross Sales $232,566
Gross Profit $87,990
Sales Discounts $1,125 (= 1/2 % of Net Sales)
Total Operating Expenses $88, 440
Selling Expenses $33, 560
Complete the following:  Complete the following:

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Question 2

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 3

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 4

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

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Question 5

Basic inventory data for April 30 are presented below for a business that employs the lower of cost or market basis of inventory valuation.

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Question 6

List the internal control objectives illustrated by the following:

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Question 7

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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Question 8

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 9

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

Accepted Answer

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Question 10

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

Accepted Answer

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Question 11

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 12

Determine the total value of the merchandise using Net Realizable Value:

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Question 13

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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Question 14

Hampton Co. took a physical count of its inventory on December 31. In addition, it had to decide whether or not the following items should be added to this count.
  Indicate which items should be added to (answer: yes) and which items should not be added to (answer: no) the December 31 inventory count.

Accepted Answer

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Question 15

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.

Accepted Answer

The answer of The units of an item available for...

Question 16

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.

Accepted Answer

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Question 17

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 18

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.

Accepted Answer

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Question 19

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.

Accepted Answer

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

Question 20

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)

Accepted Answer

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

Quiz 7: Inventories

The following information was extracted from the Stone Company's records. Gross Sales $232,566 Gross Profit $87,990 Sales Discounts $1,125 (= 1/2 % of Net Sales) Total Operating Expenses $88, 440 Selling Expenses $33, 560 Complete the following: Complete the following:

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.

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

Basic inventory data for April 30 are presented below for a business that employs the lower of cost or market basis of inventory valuation.

List the internal control objectives illustrated by the following:

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.

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?

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

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

Determine the total value of the merchandise using Net Realizable Value:

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.

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.

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.

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