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Topic: The Flow of Inventory Costs
46.
Which of the following results in the cost of goods sold being stated at the most current
acquisition costs?
47.
Which of the following results in the inventory being stated at the most current acquisition
costs?
48.
During a period of steadily falling prices, which of the following methods of measuring the
cost of goods sold is likely to result in reporting the highest gross profit?
49.
During a period of steadily falling prices, which of the following methods of measuring the
cost of goods sold is likely to result in the lowest taxable income?
50.
In a period of rising prices, a company is most likely to use the specific identification
method of pricing inventory if:
51.
During periods of inflation, which method will yield the smallest ending inventory and the
largest cost of goods sold?
52.
In a period of rising prices, a company is most likely to use the FIFO method of pricing
inventory if:
53.
Which of the following inventory approaches is
not
in accord with the physical flow of
merchandise in most businesses?
54.
A store that sells expensive custom-made jewelry is most likely to determine its cost of
goods sold using:
55.
The choice of inventory valuation method can help achieve each of the following
independent goals,
except
:
56.
With respect to the valuation of inventory and measurement of the cost of goods sold, the
principle of consistency means that the same method should be applied:
57.
In a manufacturing company, the "just-in-time" concept of inventory management is best
illustrated by:
58.
The "just-in-time" concept of inventory management is best illustrated by:
59.
The primary advantage of a just-in-time inventory system is:
60.
The principle of consistency states that:
61.
From an accounting point of view, one implication of an effective just-in-time inventory
system is that:
62.
If all things are equal, except one company uses LIFO during inflation and the other uses
FIFO, then:
63.
An advocate of just-in-time inventory system would say:
64.
During periods of rising prices, and being primarily concerned with tax implications, most
of the companies would select:
8-32
65.
For the purpose of delaying income taxes, during an inflationary period, which method
would be best?
Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of
a particular product and its purchases during the month of January were as follows:
On January 14, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained
in inventory at January 31.
66.
Refer to the information above. Assuming that Beech Soda uses the FIFO cost flow
assumption, the cost of goods sold to be recorded at January 14 is:
67.
Refer to the information above. Assuming that Beech Soda uses the LIFO cost flow
assumption, the cost of goods sold to be recorded at January 14 is:
68.
Refer to the information above. Assuming that Beech Soda uses the average cost flow
assumption, the cost of goods sold to be recorded at January 14 is (round your
intermediate calculation to one decimal place and cost per unit to the nearest cent):
69.
Refer to the information above. Assuming that Beech Soda uses the FIFO cost flow
assumption, the 28 units of this product in inventory at January 31 have a total cost of:
70.
Refer to the information above. Assuming that Beech Soda uses the LIFO cost flow
assumption, the 28 units of this product in inventory at January 31 have a total cost of:
71.
Refer to the information above. Assuming that Anderson uses the LIFO cost flow
assumption, it should record this inventory shrinkage by:
72.
Refer to the information above. Assuming that Anderson uses the FIFO cost flow
assumption, it should record this inventory shrinkage by:
73.
Refer to the information above. Under the FIFO cost flow assumption, the cost of these
items to be included in inventory in the company's year-end balance sheet is:
8-38
74.
Refer to the information above. Under the LIFO cost flow assumption, the cost of this item
to be included as inventory in the company's year-end balance sheet is:
At the end of last year, Games-2-Use had merchandise costing $140,000 in inventory.
During January of the current year, the company purchased merchandise costing $102,000,
and sold merchandise that it had purchased at a total cost of $84,000. Games-2-Use uses
a perpetual inventory system.
75.
Refer to the information above. The total amount debited to the Inventory account during
January was:
76.
Refer to the information above. The balance in the Inventory account at January 31 was:
8-40
77.
Refer to the information above. The amount of goods transferred from the Inventory
account to the Cost of Goods Sold account during January was:
Castle TV, Inc. purchased 1,000 monitors on January 5 at a per-unit cost of $185, and
another 1,000 units on January 31 at a per-unit cost of $230. In the period from February 1
through year-end, the company sold 1,800 units of this product. At year-end, 200 units
remained in inventory.
