This preview has intentionally blurred parts. Sign up to view the full document

View Full Document

Unformatted Document Excerpt

A111 Chapter 10 part A: Inventory 1. All of the following are inventory costing methods, except [A] specific identification. [B] periodic. [C] average-cost. [D] first-in, first-out. 2. The most important accounting problem in dealing with inventory is the application of which of the following conventions or rules? [A] Conservatism [B] Materiality [C] Matching [D] Full disclosure 3. Which of the following is an inventory costing method? [A] Periodic [B] Lower-of-cost-or-market [C] Specific identification [D] Perpetual 4. Inventory costing methods place primary reliance on assumptions about the flow of [A] costs. [B] values. [C] resale prices. [D] goods. 5. Which of the following costs would not be included in the cost of inventory? [A] Sales tax [B] Invoice price [C] Cost of goods held on consignment [D] Freight in 6. Which of the following terms best describes the assumption made in applying the four inventory methods? [A] Physical flow [B] Asset flow [C] Cost flow [D] Goods flow 7. An assumption about cost flow is necessary [A] because it is required by income tax regulations. [B] even when there is no change in the purchase price of inventory. [C] only when the flow of goods cannot be determined. [D] because prices usually change, and tracking which units have been sold is difficult. Use the following inventory information for the month of June to answer the question(s) below. June 1 5 14 21 30 Beginning inventory Purchase Sale Purchase Sale 10 units @ $120 60 units @ $112 40 units 30 units @ $116 28 units 8. Assuming that a periodic inventory system is used, what is cost of goods sold on a LIFO basis? [A] $3,664 [B] $3,704 [C] $7,696 [D] $7,736 9. Assuming that a periodic inventory system is used, what is cost of goods sold under the average-cost method? [A] $3,648 [B] $3,712 [C] $7,752 [D] $7,888 10. What is cost of goods sold under the specific identification method? [A] $3,704 [B] $7,696 [C] $7,736 [D] More information is needed. Use the following inventory information for the month of May to answer the question(s) below.... View Full Document

End of Preview

Sign up now to access the rest of the document