QUIZ 5

-
•             Question 1
5 out of 5 points
               
                Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $100,000 in sales during the second quarter of this year. If it began the quarter with $18,000 of inventory at cost and purchased $72,000 of inventory during the quarter, its estimated ending inventory by the gross profit method is:                                     
                Selected Answer:             $20,000.
                                               
•             Question 2
5 out of 5 points
               
                The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:                                   
                Selected Answer:             Specific identification method.
                                               
•             Question 3
5 out of 5 points
               
                The assignment of costs to cost of goods sold and inventory using weighted average usually yields different results depending on whether a perpetual or periodic system is used.                                     
                Selected Answer:             True
                                               
•             Question 4
5 out of 5 points
               
                The inventory valuation method that tends to smooth out erratic changes in costs is:                                       
                Selected Answer:             Weighted average.
                                               
•             Question 5
5 out of 5 points
               
                The inventory turnover ratio:                                     
                Selected Answer:             Reveals how many times a company sells its merchandise inventory during a period.
                                               
•             Question 6
5 out of 5 points
               
                Overstating beginning inventory will understate cost of goods sold and net income.                                         
                Selected Answer:             False
                                               
•             Question 7
5 out of 5 points
               
                If a period-end inventory amount is reported in error, it can cause a misstatement in all of the following except:                                
                Selected Answer:             Net sales.
                                               
•             Question 8
5 out of 5 points
               
                McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4. Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale?                                         
                Selected Answer:             $3,485.
                                               
•             Question 9
5 out of 5 points
               
                The choice of an inventory valuation method has little to no impact on gross profit and cost of sales.                                        
                Selected Answer:             False
                                               
•             Question 10
0 out of 5 points
               
                During a period of steadily rising costs, the inventory valuation method that yields the highest reported net income is:                                           
                Selected Answer:             LIFO method.
                                               
•             Question 11
5 out of 5 points
               
                A company's cost of inventory was $219,500. Due to phenomenal demand the market value of its inventory increased to $221,700. This company should record the inventory at its market value.                                     
                Selected Answer:             False
                                               
•             Question 12
0 out of 5 points
               
                Monarch Company uses a weighted-average perpetual inventory system, and has the following purchases and sales:

January 1             20 units were purchased at $10 per unit.
January 12           12 units were sold.
January 20           18 units were purchased at $11 per unit.

What is the value of ending inventory? (Round average cost per unit to 2 decimal places.)                                             
                Selected Answer:             $126.
                                               
•             Question 13
5 out of 5 points
               
                Accounting principles require that inventory be reported at the market value (cost) of replacing inventory when cost is lower than market value.                                   
                Selected Answer:             False
                                               
•             Question 14
0 out of 5 points
               
                The understatement of the beginning inventory balance causes:                               
                Selected Answer:             Cost of goods sold to be overstated and net income to be understated.
                                               
•             Question 15
5 out of 5 points
               
                Raleigh Co. has the following products in its ending inventory. Compute the lower of cost or market total for inventory applied separately to each product.

Product Quantity              Cost per unit                     Market per unit
Jelly       150         $              2.00                       2.15
Jam        370         $              2.65                       2.50
Marmalade         260         $              3.10                       3.05
________________________________________
                                               
                Selected Answer:             $2,018.00.
                                               
•             Question 16
0 out of 5 points
               
                Goods on consignment are goods shipped by their owner, called the consignor, to another party called the consignee. The consignee sells goods for the owner.                                       
                Selected Answer:             False
                                               
•             Question 17
0 out of 5 points
               
                Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO.

Date      Activities              Units Acquired at Cost   Units Sold at Retail
May 1    Beginning Inventory       150 units @ $10.00         
5              Purchase             220 units @ $12.00         
10           Sales                     140 units @ $20.00
15           Purchase             100 units @ $13.00         
24           Sales                     90 units @ $21.00
________________________________________
                                               
                Selected Answer:             $2,980
                                               
•             Question 18
5 out of 5 points
               
                Eastview Company uses a perpetual LIFO inventory system, and has the following purchases and sales:

January 1             150 units were purchased at $9 per unit.
January 17           120 units were sold.
January 20           160 units were purchased at $11 per unit.
January 29           150 units were sold.

What is the value of ending inventory?                                 
                Selected Answer:             $380.
                                               
•             Question 19
5 out of 5 points
               
                Some companies choose to avoid assigning incidental costs of acquiring merchandise to inventory by recording them as cost of goods sold when incurred. The principle that supports this is called:                                     
                Selected Answer:             The materiality constraint.
                                               
•             Question 20
5 out of 5 points
               
                A company has beginning inventory of 10 units at a cost of $10 each on February 1. On February 3, it purchases 20 units at $12 each. 12 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 12 units that are sold?                                            

                Selected Answer:             $124

Comments

  1. UnknownSeptember 16, 2019 at 6:48 PM

    Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to ending inventory using LIFO.


    Date Activities Units Acquired at Cost Units Sold at Retail
    May 1 Beginning Inventory 200 units @ $15
    5 Purchase 245 units @ $17
    10 Sales 165 units @ $25
    15 Purchase 125 units @ $18
    24 Sales 115 units @ $26

    ReplyDelete
  2. NatashaMarch 21, 2021 at 3:16 PM

    Get best accounting assignment help for all fields by experts now at Ask Assignment Help. Visit now https://www.askassignmenthelp.com/accounting-assignment-help.html

    ReplyDelete
  3. Online Exam HelpMarch 21, 2021 at 3:17 PM

    Score good grades always with the best online class help providers. Visit us now

    ReplyDelete
  4. Finance Assignment HelpMarch 21, 2021 at 3:31 PM

    Ask Assignment Help is efficient enough to provide high quality and reliable finance assignment help to students around the World

    ReplyDelete
  5. Management Assignment HelpMarch 21, 2021 at 4:06 PM

    Ask Assignment Help is the leading organization to provide management assignment help to students so that they can score good grades in their courses

    ReplyDelete

Post a Comment

Popular posts from this blog

ACG2021-Connect Ch.4

-
Image
Required information Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.   May 3 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000). 5 Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $5,000. 7 Macy returns 50 units because they did not fit the customer’s needs (invoice amount: $700). Allied restores the units, which cost $500, to its inventory. 8 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage. 15 Allied recei
Read more

ACG- Connect Ch.9

-
Image
Sylvestor Systems borrows $195,000 cash on May 15, 2017, by signing a 120-day, 6% note. 1.  On what date does this note mature? September 11, 2017 September 12, 2017 Correct September 13, 2017 September 14, 2017 September 15, 2017 2.  Assume the face value of the note equals $195,000, the principal of the loan.   Explanation Maturity date = May 15 + 120 days = September 12, 2017. Required information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. Gross Pay through August Gross Pay for September a. $ 6,400 $ 1,700 b.
Read more

ACG- Connect Ch. 5

-
Image
6 . In 2017, Dakota Company had net sales (at retail) of $141,000.   At Cost At Retail Beginning inventory $ 33,000 $ 65,300 Cost of goods purchased 55,992 99,500 The above additional information is available from its records at the end of 2017. Use the retail inventory method to estimate Dakota's 2017 ending inventory at cost.  (Round cost ratio to the nearest whole percentage.)   Explanation At Cost At Retail Goods available for sale Beginning inventory $ 33,000 $ 65,300 Cost of goods purchased 55,992 99,500 Goods available for sale $ 88,992
Read more