Question 1

a. Explain the effect of the following on the financial statements:
Goods held on consignment were included in the ending inventory count.
Goods purchased FOB shipping point were in transit on the last day of the year. The goods were not counted as part of ending inventory.
Goods sold FOB shipping point were in transit on the last day of the year. These goods were not counted as part of ending inventory.
b. What happens if inventory errors are not found and corrected?

Accepted Answer

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Question 2

The units of an item available for sale during the year were as follows:
  There are 25 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 3

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.

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Question 4

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 5

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 6

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

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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)

Accepted Answer

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

Question 8

A business using the retail method of inventory costing determines that merchandise inventory at retail is $1,700,000. If the ratio of cost to retail price is 55%, what is the amount of inventory to be reported on the financial statements?

Accepted Answer

The answer of A business using the retail method of...

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.

Accepted Answer

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

Question 10

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

Accepted Answer

The answer of Fill in the missing amounts from the...

Question 11

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?

Accepted Answer

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Question 12

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 13

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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The answer of Basic inventory data for April 30 are...

Question 14

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.

Accepted Answer

The answer of On the basis of the following data,...

Question 15

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

The answer of The units of Product Green-2 available for...

Question 16

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?

Accepted Answer

The answer of While taking a physical inventory, a company...

Question 17

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.

Accepted Answer

The answer of On the basis of the following data,...

Question 18

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

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

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.

Accepted Answer

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Question 20

List the internal control objectives illustrated by the following:

Accepted Answer

The answer of List the internal control objectives illustrated by...

Quiz 6: Inventories

The units of an item available for sale during the year were as follows: There are 25 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost using FIFO.

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

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

A business using the retail method of inventory costing determines that merchandise inventory at retail is $1,700,000. If the ratio of cost to retail price is 55%, what is the amount of inventory to be reported on the financial statements?

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.

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

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

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

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 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.

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?

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.

List the internal control objectives illustrated by the following: