85.
Inventory records for Dunbar Incorporated revealed the following:
Date
Transaction
Number of Units
Unit Cost
Apr. 1
Beginning inventory
500
$2.40
Apr. 20
Purchase
400
2.50
Dunbar sold 700 units of inventory during the month. Ending inventory assuming
weighted-average cost would be (round weighted–average unit cost to four decimals and
final answer to the nearest whole dollar):
86.
Inventory records for Dunbar Incorporated revealed the following:
Date
Transaction
Number of Units
Unit Cost
Apr. 1
Beginning inventory
500
$2.40
Apr. 20
Purchase
400
2.50
Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming
weighted-average cost would be (round weighted–average unit cost to four decimals and
final answer to the nearest whole dollar):
87.
Inventory records for Marvin Company revealed the following:
Date
Transaction
Number of Units
Unit Cost
Mar. 1
Beginning inventory
1,000
$7.20
Mar. 10
Purchase
600
7.25
Mar. 16
Purchase
800
7.30
Mar. 23
Purchase
600
7.35
Marvin sold 2,300 units of inventory during the month. Ending inventory assuming FIFO
would be:
88.
Inventory records for Marvin Company revealed the following:
Date
Transaction
Number of Units
Unit Cost
Mar. 1
Beginning inventory
1,000
$7.20
Mar. 10
Purchase
600
7.25
Mar. 16
Purchase
800
7.30
Mar. 23
Purchase
600
7.35
Marvin sold 2,300 units of inventory during the month. Cost of goods sold assuming FIFO
would be:
89.
Inventory records for Marvin Company revealed the following:
Date
Transaction
Number of Units
Unit Cost
Mar. 1
Beginning inventory
1,000
$7.20
Mar. 10
Purchase
600
7.25
Mar. 16
Purchase
800
7.30
Mar. 23
Purchase
600
7.35
Marvin sold 2,300 units of inventory during the month. Ending inventory assuming LIFO
would be:
90.
Inventory records for Marvin Company revealed the following:
Date
Transaction
Number of Units
Unit Cost
Mar. 1
Beginning inventory
1,000
$7.20
Mar. 10
Purchase
600
7.25
Mar. 16
Purchase
800
7.30
Mar. 23
Purchase
600
7.35
Marvin sold 2,300 units of inventory during the month. Cost of goods sold assuming LIFO
would be:
91.
Inventory records for Marvin Company revealed the following:
Date
Transaction
Number of Units
Unit Cost
Mar. 1
Beginning inventory
1,000
$7.20
Mar. 10
Purchase
600
7.25
Mar. 16
Purchase
800
7.30
Mar. 23
Purchase
600
7.35
Marvin sold 2,300 units of inventory during the month. Ending inventory assuming
weighted-average cost would be (round weighted–average unit cost to four decimals and
final answer to the nearest whole dollar):
92.
Inventory records for Marvin Company revealed the following:
Date
Transaction
Number of Units
Unit Cost
Mar. 1
Beginning inventory
1,000
$7.20
Mar. 10
Purchase
600
7.25
Mar. 16
Purchase
800
7.30
Mar. 23
Purchase
600
7.35
Marvin sold 2,300 units of inventory during the month. Cost of goods sold assuming
weighted-average cost would be (round weighted–average unit cost to four decimals and
final answer to the nearest whole dollar):
93.
The following information pertains to Julia & Company:
March 1 Beginning inventory = 30 units @ $5
March 3 Purchased 15 units @ $4
March 9 Sold 25 units @ $8
What is the ending inventory balance for Julia & Company assuming that it uses FIFO?
94.
The following information pertains to Julia & Company:
March 1 Beginning inventory = 30 units @ $5
March 3 Purchased 15 units @ $4
March 9 Sold 25 units @ $8
What is the cost of goods sold for Julia & Company assuming it uses LIFO?
95.
Consider the following inventory transactions for September:
Beginning inventory
15 units @ $3.00
Purchase on September 12
20 units @ $3.50
Purchased on September 23
10 units @ $4.00
For the month of September, the company sold 35 units. What is cost of goods sold under
the weighted-average cost method (round the weighted-average unit cost to four decimals
and final answer to the nearest whole dollar)?
96.
FIFO is considered a balance sheet approach for reporting inventory because it:
97.
Which inventory method is better described as having a balance sheet focus and why is it
considered as such?
98.
LIFO is considered an income statement approach for reporting inventory because it:
99.
Which inventory method is better described as having an income statement focus and why
is it considered as such?
100.
Which inventory cost flow assumption more realistically matches the current cost of
inventory with current sales revenue?
101.
The choice of inventory cost flow assumptions affects which of the following amounts?
102.
In a period when inventory costs are rising, the inventory method that most likely results in
the highest ending inventory is:
103.
In a period when inventory costs are falling, the lowest taxable income is most likely
reported by using the inventory method of:
104.
Which of the following is true regarding LIFO and FIFO?
105.
During periods when inventory costs are rising, cost of goods sold will most likely be:
106.
In a period of rising costs, which inventory valuation method would a company likely
choose if they want to have the highest possible balance of inventory on the balance
sheet?
107.
During periods when inventory costs are rising, ending inventory will most likely be:
108.
The LIFO conformity rule states that if LIFO is used for:
109.
The primary reason for the popularity of LIFO is that it gives:
110.
Which of the following is true concerning inventory cost flow assumptions?
111.
Which of the following is incorrect regarding LIFO and FIFO?
112.
Which inventory cost flow assumption generally results in the highest reported amount for
cost of goods sold when inventory costs are falling?
113.
The disclosure that shows the difference in the cost of inventory between LIFO and FIFO
is referred to as the:
114.
Which of the following considerations may influence a manager’s choice of the inventory
cost flow assumption for a company that experiences rising prices?
115.
A perpetual inventory system measures cost of goods sold by: