199.
A company had inventory of 14 units at a cost of $18 each on November 1. On November
2, they purchased 19 units at $19 each. On November 6, they purchased 15 units at $20
each. On November 8, they sold 36 units for $63 each. Using the LIFO periodic inventory
method, what was the cost of the 36 units sold?
200.
A company had inventory of 10 units at a cost of $14 each on November 1. On November
2, they purchased 15 units at $15 each. On November 6, they purchased 11 units at $16
each. On November 8, they sold 28 units for $59 each. Using the LIFO periodic inventory
method, what was the cost of the 28 units sold?
201.
A corporation has provided the following information about one of its products:
Date
Transaction
Number of
Units
Cost per
Unit
1/1
Beginning
Inventory
295
$159
6/5
Purchase
495
$179
11/15
Purchase
195
$219
During the year, 590 units were sold. What is ending inventory using the weighted average
periodic inventory method? (Round the weighted average cost per unit to two decimal
points; round the ending inventory to the nearest whole dollar.)
202.
A corporation has provided the following information about one of its products:
Date
Transaction
Number of
Units
Cost per
Unit
1/1
Beginning
Inventory
235
$147
6/5
Purchase
435
$167
11/15
Purchase
135
$207
During the year, 470 units were sold. What is ending inventory using the weighted average
periodic inventory method? (Round the weighted average cost per unit to two decimal
points; round the ending inventory to the nearest whole dollar.)
5-155
203.
A corporation has provided the following information about one of its products:
Date
Transaction
Number of
Units
Cost per
Unit
1/1
Beginning
Inventory
255
$151
6/5
Purchase
455
$171
11/15
Purchase
155
$211
During the year, 510 units were sold. What is ending inventory using the weighted average
periodic inventory method? (Round the weighted average cost per unit to two decimal
points; round the ending inventory to the nearest whole dollar.)
Fill in the Blank Questions
204.
If the shipping terms are _______________, ownership of the shipped goods passes from
the seller to the buyer when the goods are shipped.
205.
If the shipping terms are _______________, ownership of the shipped goods passes from
the seller to the buyer when the goods reach the buyer’s location.
206.
If damaged goods can be sold at a reduced price, they are included in inventory at their
________________________.
207.
Some companies use the _________________ constraint, also called the cost–to-benefit
constraint, to justify assigning incidental costs of acquiring merchandise directly to cost of
goods sold.
208.
The cost of an inventory item includes the _____________ of an inventory minus any
_____________ plus ______________ costs necessary to put it in a place and condition for
sale.
209.
When purchase costs regularly rise, the ___________________ method of inventory
valuation yields the highest gross profit and net income.
210.
When purchase costs regularly rise, the ___________________ method of inventory
valuation yields the lowest gross profit and net income, providing a tax advantage.
211.
An advantage of the _________________ method of inventory valuation is that it tends to
smooth out the effect of erratic changes in costs.
212.
An overstated beginning inventory will ______________ cost of goods sold and
_____________ net income in that year.
213.
The ____________________ ratio reflects how much inventory is available in terms of the
number of days’ sales.
214.
The _____________________ is a measure of how quickly a merchandiser sells its inventory
during a period.
215.
The ______________________ method of assigning costs to inventory and cost of goods sold
is usually only practical for companies with expensive, custom-made inventory.
216.
The _____________________ method of assigning costs to inventory and cost of goods sold
assumes that the inventory items are sold in the order acquired.
217.
The ______________________ method of assigning costs to inventory and cost of goods sold
assumes that the most recent purchases are sold first.
218.
The ______________________ method of assigning costs to inventory and cost of goods sold
under the perpetual system requires that the cost of goods available for sale be divided by
the units of inventory available when each sale takes place.
219.
Regardless of what inventory method or system is used, cost of goods available for sale
must be allocated between ___________________ and ___________________.
220.
When applying the lower of cost or market method of inventory valuation, market is
defined as the ______________________.
221.
When the __________ method is used with a periodic inventory system, cost of goods sold
is assigned costs from the most recent purchases for the period.
222.
The _________________ method is commonly used to estimate the value of inventory that
has been destroyed, lost or stolen.