148. At the beginning of 2012, Calston Incorporated reports inventory of $9,000. During
2012, the company purchases additional inventory for $25,000. At the end of 2012, the cost of
inventory remaining is $8,000. Calculate cost of goods sold for 2012.
149. Listed below are ten terms followed by a list of phrases that describe or characterize five
of the terms. Match each phrase with the best term placing the letter designating the term in
the space provided.
Terms:
a. Ending inventory
b. Freight-in
c. Cost of goods sold
d. LIFO conformity rule
e. LIFO
f. Freight-out
g. LIFO reserve
h. Specific identification
i. FIFO
j. Average cost
_____ Inventory costing method that matches each unit of inventory with its actual cost.
150. Listed below are ten terms followed by a list of phrases that describe or characterize five
of the terms. Match each phrase with the best term placing the letter designating the term in
the space provided.
Terms:
a. Ending inventory
b. Freight-in
c. Cost of goods sold
d. LIFO conformity rule
e. LIFO
f. Freight-out
g. LIFO reserve
h. Specific identification
i. FIFO
j. Average cost
_____ Cost of inventory sold during the period.
151. Listed below are ten terms followed by a list of phrases that describe or characterize five
of the terms. Match each phrase with the best term placing the letter designating the term in
the space provided.
Terms:
a. Ending inventory
b. Freight-in
c. Cost of goods sold
d. LIFO conformity rule
e. LIFO
f. Freight-out
g. LIFO reserve
h. Specific identification
i. FIFO
j. Average cost
_____ Additional amount of inventory a company would report if it used FIFO instead of
LIFO.
152. Listed below are ten terms followed by a list of phrases that describe or characterize five
of the terms. Match each phrase with the best term placing the letter designating the term in
the space provided.
Terms:
a. Ending inventory
b. Freight-in
c. Cost of goods sold
d. LIFO conformity rule
e. LIFO
f. Freight-out
g. LIFO reserve
h. Specific identification
i. FIFO
j. Average cost
_____ Cost of freight included in inventory.
153. Listed below are ten terms followed by a list of phrases that describe or characterize five
of the terms. Match each phrase with the best term placing the letter designating the term in
the space provided.
Terms:
a. Ending inventory
b. Freight-in
c. Cost of goods sold
d. LIFO conformity rule
e. LIFO
f. Freight-out
g. LIFO reserve
h. Specific identification
i. FIFO
j. Average cost
_____ Cost flow assumption that assumes last units purchased are sold first.
154. During 2012, a company sells 20 units of inventory. The company has the following
inventory purchase transactions for 2012:
Calculate ending inventory and cost of goods sold for 2012 assuming the company uses FIFO
with a periodic inventory system.
155. During 2012, a company sells 20 units of inventory. The company has the following
inventory purchase transactions for 2012:
Calculate ending inventory and cost of goods sold for 2012 assuming the company uses LIFO
with a periodic inventory system.
156. During 2012, a company sells 20 units of inventory. The company has the following
inventory purchase transactions for 2012:
Calculate ending inventory and cost of goods sold for 2012 assuming the company uses
weighted-average cost with a periodic inventory system.
157. During 2012, a company sells 300 units of inventory for $85 each. The company has the
following inventory purchase transactions for 2012:
Calculate ending inventory and cost of goods sold for 2012 assuming the company uses FIFO
with a periodic inventory system.
158. During 2012, a company sells 400 units of inventory for $85 each. The company has the
following inventory purchase transactions for 2012:
Calculate ending inventory and cost of goods sold for 2012 assuming the company uses LIFO
with a periodic inventory system.
159. During 2012, a company sells 500 units of inventory for $90 each. The company has the
following inventory purchase transactions for 2012:
Calculate cost of goods sold and ending inventory for 2012 assuming the company uses
weighted-average cost with a periodic inventory system (round weighted-average unit cost to
four decimals if necessary).
160. During 2012, a company sells 200 units of inventory for $50 each. The company has the
following inventory purchase transactions for 2012:
Actual sales by the company include its entire beginning inventory, 80 units of inventory from
the May 5 purchase, and 70 units from the November 3 purchase. Calculate cost of goods sold
and ending inventory for 2012 assuming the company uses specific identification.
161. What are the three primary cost flow assumptions? How does the specific identification
method differ from these three primary cost flow assumptions?
162. For each item below, indicate whether FIFO or LIFO will generally result in a higher
reported amount when inventory costs are rising versus falling.
163. What does it mean that FIFO has a balance sheet focus and LIFO has an income
statement focus?
164. A company uses a perpetual system to record inventory transactions. The company
purchases inventory on account on February 9, 2012, for $50,000 and then sells this inventory
on account on March 7, 2012, for $70,000. Record the transactions for the purchase and sale
of the inventory.
165. A company has the following transactions during March:
166. Listed below are four terms followed by a list of phrases that describe or characterize
the terms. Match each phrase with the best term placing the letter designating the term in the
space provided.
Terms:
a. FOB shipping point
b. FOB destination
c. Periodic inventory system
d. Perpetual inventory system
_____ Requires a debit to cost of goods sold when inventory is sold.
167. Listed below are four terms followed by a list of phrases that describe or characterize
the terms. Match each phrase with the best term placing the letter designating the term in the
space provided.
Terms:
a. FOB shipping point
b. FOB destination
c. Periodic inventory system
d. Perpetual inventory system
_____ Indicates that title to inventory transfers from the seller to the buyer at the point it is
shipped.
168. Listed below are four terms followed by a list of phrases that describe or characterize
the terms. Match each phrase with the best term placing the letter designating the term in the
space provided.
Terms:
a. FOB shipping point
b. FOB destination
c. Periodic inventory system
d. Perpetual inventory system
_____ Requires a year-end adjustment for inventory.
169. Listed below are four terms followed by a list of phrases that describe or characterize
the terms. Match each phrase with the best term placing the letter designating the term in the
space provided.
Terms:
a. FOB shipping point
b. FOB destination
c. Periodic inventory system
d. Perpetual inventory system
_____ Indicates that title to inventory transfers from the seller to the buyer once it reaches the
buyer.