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Exam 6: Reporting and Analyzing Inventory

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Question 81

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If beginning inventory is understated by $10,000, the effect of this error in the current period is

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Question 82

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Classic Floors has the following inventory data: Assuming that a perpetual inventory system is used, what is the cost of goods sold on a LIFO basis for July?

A) $465.60
B) $236.40
C) $702.00
D) $348.00

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Question 83

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Redeker Company had the following records: What is Redeker's average days in inventory for 2014? (rounded)

The major IFRS requirements related to accounting for and reporting inventories are

Reporting which one of the following allows analysts to make adjustments to compare companies using different cost flow methods?

An error that overstates the ending inventory will also cause net income for the period to be overstated.

Woodson Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Woodson Company uses the perpetual inventory system. Instructions (a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for March. (Show computations) (b) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31. (Show computations)

Snug-As-A-Bug Blankets has the following inventory data: Assuming that a perpetual inventory system is used, what is the ending inventory on a LIFO basis for July?

GAAP defines market for lower-of-cost-or market essentially as

The term "FOB" denotes

Wooderson Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Wooderson Company uses the periodic inventory system. Instructions (a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for March. (Show computations) (b) Using the weighted-average method, calculate the amount assigned to the inventory on hand on March 31. (Show computations) (c) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31. (Show computations)

Hogan Industries had the following inventory transactions occur during 2014: The company sold 102 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars)

Use the following information for Boxter, Inc., Clifford Company, Danforth Industries, and Evans Services to answer the question "Using the LIFO adjustment, which company shows the greatest improvement in its current ratio from 2013 to 2014?"

A company uses the periodic inventory method and the beginning inventory is overstated by $4,000 because the ending inventory in the previous period was overstated by $4,000; the ending inventory for this period is correct. The amounts reflected in the current end of the period balance sheet are

Dobler Company uses a periodic inventory system. Details for the inventory account for the month of January 2014 are as follows: An end of the month (1/31/2014) inventory showed that 160 units were on hand. How many units did the company sell during January 2014?

Under the periodic inventory system, both the sales amount and the cost of goods sold amount are recorded when each item of merchandise is sold.

The situation that requires a departure from the cost basis of accounting to the lower of cost or market basis in valuing inventory is necessitated by

Hess Company's inventory records show the following data for the month of September: A physical inventory on September 30 shows 150 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses LIFO inventory costing and a periodic inventory system.

Carryable CDs has the following inventory data: A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Cost of goods sold under LIFO is

In a period of declining prices, which of the following inventory methods generally results in the lowest balance sheet figure for inventory?