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78.
Refer to the information above. Assume that Castle TV, Inc. uses the FIFO flow
assumption. The cost of the 200 units in inventory at year-end is:
79.
Refer to the information above. Assume that Castle TV, Inc. uses the LIFO flow
assumption. The cost of the 200 units in the year-end inventory is:
80.
Refer to the information above. Assume that the replacement cost of this monitor at year-
end is $220 per unit. Using the FIFO flow assumption and the lower-of-cost-or-market
rule, Castle TV should write down the carrying value of this inventory by:
8-43
81.
Refer to the information above. Assume that the replacement cost of this monitor at year-
end is $210 per unit. Using LIFO flow assumption and the lower-of-cost-or-market rule,
the ending inventory amounts to:
Venus Wholesale Co. started carrying a new product in December. Purchases and sales of
this product during the month were:
82.
Refer to the information above. Assuming the LIFO flow assumption is in use, the
perpetual inventory records will indicate an ending inventory of this product of:
83.
Refer to the information above. At year-end, Venus restates the carrying value of its
inventory using periodic LIFO costing procedures. Under periodic costing procedures, the
LIFO cost of the inventory is:
84.
The primary reason a physical inventory is taken is to:
85.
As a result of taking an annual physical inventory, it usually is necessary in a perpetual
inventory system to make an entry:
86.
The write-down of inventory:
87.
Green Leaf Company had the following information available on December 31:
Management applies the LCM rule on the basis of inventory category and includes
wheelbarrows and hoses in the large implement category and shovels and gloves in the
small implement category. What is the write-down required?
88.
Green Leaf Company had the following information available on December 31:
Management applies the LCM rule on the basis of individual inventory items. What is the
write-down required?
89.
Green Leaf Company had the following information available on December 31:
Management applies the LCM rule on the basis of the total inventory. What is the write-
down required?
90.
The lower-of-cost-or-market rule may be applied by comparing the market value of the
inventory to the cost of the inventory based on:
91.
The logic behind the lower-of-cost-or-market rule is:
92.
Many companies state in their annual reports that inventory is shown at the lower of its
cost or market value. This means that the inventory:
93.
The lower-of-cost-or-market rule:
94.
Goods in transit between the buyer and the seller belong to:
95.
In a periodic inventory system, recording a sale on account involves debiting which of the
following accounts?
96.
In a periodic inventory system, recording a sale on account involves crediting which of the
following accounts?
97.
In a periodic inventory system, the cost of goods sold is determined as follows:
Topic: Taking a Physical Inventory
Harding Systems, Inc. uses a periodic inventory system. The purchases of a particular
product during the year are shown below:
At December 31 the ending inventory consisted of 1,500 units.
98.
Refer to the information above. Compute the cost of the ending inventory based on the
LIFO method of inventory valuation.
99.
Refer to the information above. Compute the cost of goods sold for the current year based
on the LIFO method of inventory valuation.
100.
Refer to the information above. Compute the cost of the ending inventory based on the
FIFO method of inventory valuation.
101.
Refer to the information above. Compute the cost of goods sold for the current year based
on the FIFO method of inventory valuation.
102.
Refer to the information above. Compute the cost of the ending inventory based on the
average-cost method of inventory valuation. (Round your final answer to the nearest dollar
value.)
103.
Refer to the information above. Compute the cost of goods sold for the current year based
on the average-cost method of inventory valuation.
104.
If the ending inventory is overstated in the current year:
105.
If the beginning inventory of the current year and the ending inventory of the past year
were overstated by the same amount:
106.
Which of the following will cause net income to be overstated for the following year?
107.
If the inventory at the end of the current year is understated and the error is never caught,
the effect is to:
108.
The CPA firm auditing Capri Corporation found that net income had been overstated.
Which of the following could be the cause?
109.
If an error in valuing inventory occurs in one year:
