6
22 Pages

6

Course Number: ACC ACC 101A, Spring 2010

College/University: UC Riverside

Word Count: 8873

Rating:

Document Preview

Name Chapter 6--Inventories Description Instructions Modify Add Question Here Question 1 True/False 0 points Modify Remove Question One of the two internal control procedures over inventory is to properly report inventory on the financial statements. Answer True False Add Question Here Question 2 True/False 0 points Modify Remove Question A detective internal control is designed to find an error or...

Unformatted Document Excerpt
Coursehero >> California >> UC Riverside >> ACC ACC 101A

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Chapter Name 6--Inventories Description Instructions Modify Add Question Here Question 1 True/False 0 points Modify Remove Question One of the two internal control procedures over inventory is to properly report inventory on the financial statements. Answer True False Add Question Here Question 2 True/False 0 points Modify Remove Question A detective internal control is designed to find an error or misstatement after it has occurred. Answer True False Add Question Here Question 3 True/False 0 points Modify Remove Question A perpetual inventory system is an effective means of control over inventory. Answer True False Add Question Here Question 4 True/False 0 points Modify Remove Question A subsidiary inventory ledger can be an aid in maintaining inventory levels at their proper levels. Answer True False Add Question Here Question 5 True/False 0 points Modify Remove Question Safeguarding inventory and proper reporting of the inventory in the books are the reasons for controlling the inventory. Answer True False Add Question Here Question 6 True/False 0 points Modify Remove Question Inventory controls start when the merchandise is shelved in the store area. Answer True False Add Question Here Question 7 True/False 0 points Modify Remove Question The specific identification inventory method should be used when the inventory consists of identical, low cost units that are purchased and sold frequently. Answer True False Add Question Here Question 8 True/False 0 points Modify Remove Question The selection of an inventory costing method has no significant impact on the financial statements. Answer True False Add Question Here Question 9 True/False 0 points Modify Remove Question Of the three widely used inventory costing methods (FIFO, LIFO, and average), the LIFO method of costing inventory is based on the assumption that costs are charged against revenues in the reverse order in which they were incurred. Answer True False Add Question Here Question 10 True/False 0 points Modify Remove Question When using the FIFO inventory costing method, the most recent costs are assigned to the cost of goods sold. Answer True False Add Question Here Question 11 True/False 0 points Modify Remove Question FIFO is the inventory costing method that follows the physical flow of the goods. Answer True False Add Question Here True/False 0 points Modify Remove Question 12 Question If the perpetual inventory system is used and a physical count disclosed a shortage, the cost of merchandise sold should be debited and the merchandise inventory account credited. Answer True False Add Question Here Question 13 True/False 0 points Modify Remove Question If the perpetual inventory system is used, the account entitled Merchandise Inventory is debited for purchases of merchandise. Answer True False Add Question Here Question 14 True/False 0 points Modify Remove Question Under the periodic inventory system, the merchandise inventory account continuously discloses the amount of inventory on hand. Answer True False Add Question Here Question 15 True/False 0 points Modify Remove Question Under the periodic inventory system, a physical inventory is taken to determine the cost of the inventory on hand and the cost of the merchandise sold. Answer True False Add Question Here Question 16 True/False 0 points Modify Remove Question One difference between the periodic and the perpetual inventory systems is that under the perpetual method the purchases account is not used. Answer True False Add Question Here Question 17 True/False 0 points Modify Remove Question The LIFO cost of ending inventory will always be the same for a periodic inventory system and a perpetual inventory system. Answer True False Add Question Here Question 18 True/False 0 points Modify Remove Question During inflationary periods, the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method. Answer True False Add Question Here Question 19 True/False 0 points Modify Remove Question During inflationary periods, the use of the FIFO method of costing inventory will yield an inventory amount for the balance sheet approximating the current replacement cost. Answer True False Add Question Here Question 20 True/False 0 points Modify Remove Question During inflationary periods, the use of the LIFO method of costing inventory will result in a greater amount of net income than would result from the use of the FIFO method. Answer True False Add Question Here Question 21 True/False 0 points Modify Remove Question During deflationary periods, the use of the LIFO method of costing inventory will result in a lower amount of current assets than would result from the use of the FIFO method. Answer True False Add Question Here Question 22 True/False 0 points Modify Remove Question During inflationary periods, an advantage of the LIFO inventory cost method is that it matches more recent costs against current revenues. Answer True False Add Question Here Question 23 True/False 0 points Modify Remove Question In valuing damaged merchandise for inventory purposes, net realizable value is the estimated selling price less any direct costs. Answer True False Add Question Here Question 24 True/False 0 points Modify Remove Question Unsold consigned merchandise should be included in the consignee's inventory. Answer True False Add Question Here Question 25 True/False 0 points Modify Remove Question If ending inventory for the year is understated, net income for the year is overstated. Answer True False Add Question Here Question 26 True/False 0 points Modify Remove Question If ending inventory for the year is overstated, stockholders equity reported on the balance sheet at the end of the year is understated. Answer True False Add Question Here Question 27 True/False 0 points Modify Remove Question The lower of cost or market is a method of inventory valuation. Answer True False Add Question Here Question 28 True/False 0 points Modify Remove Question "Market," as used in the phrase "lower of cost or market" for valuing inventory, refers to the price at which the inventory is being offered for sale by its owner. Answer True False Add Question Here Question 29 True/False 0 points Modify Remove Question A consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor. Answer True False Add Question Here Question 30 True/False 0 points Modify Remove Question The use of the lower-of-cost-or-market method of inventory valuation increases net income for the period in which the inventory replacement price declined. Answer True False Add Question Here Question 31 True/False 0 points Modify Remove Question The lower-of-cost-or-market method of determining the value of ending inventory can be applied on an item by item, by major classification of inventory, or by the total inventory. Answer True False Add Question Here Question 32 True/False 0 points Modify Remove Question When merchandise inventory is shown on the balance sheet, both the method of determining the cost of the inventory and the method of valuing the inventory should be shown. Answer True False Add Question Here Question 33 True/False 0 points Modify Remove Question Most large companies will use only one inventory costing methods for all of its different segments. Answer True False Add Question Here Question 34 True/False 0 points Modify Remove Question Companies having inventory decreases due to lower of cost or market valuations will disclose the information to stockholders. Answer True False Add Question Here Question 35 True/False 0 points Modify Remove Question In the retail inventory method, the cost to retail ratio is equal to the cost of goods sold divided by the retail price of the good sold. Answer True False Add Question Here Question 36 True/False 0 points Modify Remove Question If the retail inventory method is used, inventory figures can be provided for interim statements without the necessity of taking a physical inventory. Answer True False Add Question Here Question 37 True/False 0 points Modify Remove Question If a fire destroys the merchandise inventory, the gross profit method can be used to estimate the cost of merchandise destroyed. Answer True False Add Question Here Question 38 True/False 0 points Modify Remove Question If a company uses the periodic inventory system to cost its inventory, the gross profit method is a method that can be used to check on theft when the actual inventory is taken by the company. Answer True False Add Question Here Question 39 True/False 0 points Modify Remove Question Generally, the lower the number of days' sales in inventory, the better. Answer True False Add Question Here Question 40 True/False 0 points Modify Remove Question One negative effect of carrying too much inventory is risk that customers will change their buying habits. Answer True False Add Question Here Question 41 True/False 0 points Modify Remove Question Average inventory is computed by adding the inventory at the beginning of the period to the inventory at the end of the period and dividing by two. Answer True False Add Question Here Question 42 Multiple Choice 0 points Modify Remove Question Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the Answer customer's ledger creditor's ledger inventory ledger merchandise inventory account Add Question Here Question 43 Multiple Choice 0 points Modify Remove Question Taking a physical count of inventory Answer is not necessary when a periodic inventory system is used is a detective control has no internal control relevance is not necessary when a perpetual inventory system is used Add Question Here Question 44 Multiple Choice 0 points Modify Remove Question Control of inventory should begin as soon as the inventory is received. Which of the following internal control steps is not done to meet this goal? Answer check the invoice to the receiving report check the invoice to the purchase order check the invoice with the person who specifically purchased the item check the invoice extensions and totals Add Question Here Question 45 Multiple Choice 0 points Modify Remove Question Which of the following is not an example for safeguarding inventory? Answer Storing inventory in restricted areas. Physical devices such as two-way mirrors, cameras, and alarms. Matching receiving documents, purchase orders, and vendors invoice. Returning inventory that is defective or broken. Add Question Here Question 46 Multiple Choice 0 points Modify Remove Question Which of the following is not true about taking physical inventories? Answer Large variances may require investigations and implementation of corrective actions. Physical inventories are taken when inventory levels are at their lowest. Physical inventories deter employee thefts and inventory misuses. Physical inventories are taken when inventory levels are at their highest. Add Question Here Question 47 Multiple Choice 0 points Modify Remove Question Which of the following inventory cost methods is appropriate for a business who has inventory with a relatively small number of unique items and a high cost per item? Answer FIFO LIFO average specific identification Add Question Here Question 48 Multiple Choice 0 points Modify Remove Question The inventory method that considers the inventory to be composed of the units of merchandise acquired earliest is called Answer first-in, first-out last-in, first-out average cost retail method Add Question Here Question 49 Multiple Choice 0 points Modify Remove Question When merchandise sold is assumed to be in the order in which the expenditures were made, the inventory method is called Answer first-in, last-out last-in, first-out first-in, first-out average cost Add Question Here Question 50 Multiple Choice 0 points Modify Remove Question The two most widely used methods for determining the cost of inventory are Answer FIFO and LIFO FIFO and average LIFO and average gross profit and average Add Question Here Question 51 Multiple Choice 0 points Modify Remove Question Under which method of cost flows is the inventory assumed to be composed of the most recent costs? Answer average cost last-in, first-out first-in, first-out weighted average Add Question Here Question 52 Multiple Choice 0 points Modify Remove Question Under which method of inventory cost flows is the cost flow assumed to be in the reverse order in which the expenditures were made? Answer weighted average last-in, first-out first-in, first-out average cost Add Question Here Question 53 Multiple Choice 0 points Modify Remove Question The inventory method that assigns the most recent costs to cost of good sold is Answer FIFO LIFO average specific identification Add Question Here Question 54 Multiple Choice 0 points Modify Remove Question Inventory costing methods place primary emphasis on assumptions about Answer flow of goods flow of costs flow of goods or costs depending on the method flow of values Add Question Here Question 55 Multiple Choice 0 points Modify Remove Question The inventory costing method that reflects a cost flow that is in the order in which the costs were incurred and will report the most current prices in ending inventory is Answer First in first out Specific identification Last in first out Average cost Add Question Here Question 56 Multiple Choice 0 points Modify Remove Question The inventory costing method that reflects the cost flow in the reverse order and will report the earliest costs in ending inventory is Answer First in first out Last in first out Average cost Specific identification Add Question Here Question 57 Multiple Choice 0 points Modify Remove Question Which of the following companies would be more likely to use the specific identification inventory costing method? Answer Gordons Jewelers Lowes Best Buy Wal-Mart Add Question Here Question 58 Multiple Choice 0 points Modify Remove Question Use the following information for Questions 17 & 18. The inventory data for an item for September are: Sep. 1 4 10 17 30 Inventory Sold Purchased Sold Purchased 20 units at $20 10 units 30 units at $25 20 units 10 units at $30 Using the perpetual system, costing by the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on September 30? Answer $800 $650 $750 $700 Add Question Here Question 59 Multiple Choice 0 points Modify Remove Question Use the following information for Questions 17 & 18. The inventory data for an item for September are: Sep. 1 4 10 17 30 Inventory Sold Purchased Sold Purchased 20 units at $20 10 units 30 units at $25 20 units 10 units at $30 Using the perpetual system, costing by the last-in, first-out method, what is the cost of the merchandise inventory of 30 units on September 30? Answer $800 $650 $750 $700 Add Question Here Question 60 Multiple Choice 0 points Modify Remove Question Under a perpetual inventory system, when a shortage is discovered Answer Merchandise Inventory is debited Cost of Merchandise Sold is credited Inventory Shortages is credited Merchandise Inventory is credited Add Question Here Question 61 Multiple Choice 0 points Modify Remove Question In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is Answer debit Cost of Merchandise Sold; credit Sales debit Cost of Merchandise Sold; credit Merchandise Inventory debit Merchandise Inventory; credit Cost of Merchandise Sold debit Accounts Receivable; credit Sales Add Question Here Question 62 Multiple Choice 0 points Modify Remove Question The inventory system employing accounting records that continuously disclose the amount of inventory is called Answer retail periodic physical perpetual Add Question Here Question 63 Multiple Choice 0 points Modify Remove Question The inventory data for an item for September are: Sep. 1 4 10 17 30 Inventory Sold Purchased Sold Purchased 20 units at $19 10 units 30 units at $20 20 units 10 units at $21 Using the perpetual system, costing by the last-in, first-out method, what is the cost of the merchandise sold for September? Answer $610 $600 $590 $580 Add Question Here Question 64 Multiple Choice 0 points Modify Remove Question Use the following information to answer Questions 23-28. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. Date Product Z Units Cost May 3 Purchase 5 $30 May 10 Sale 3 May 17 Purchase 10 $34 May 20 Sale 6 May 23 Sale 3 May 30 Purchase 10 $40 Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the LIFO inventory cost method. Answer $196 $204 $240 $124 Add Question Here Question 65 Multiple Choice 0 points Modify Remove Question Use the following information to answer Questions 23-28. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. Date Product Z Units Cost May 3 Purchase 5 $30 May 10 Sale 3 May 17 Purchase 10 $34 May 20 Sale 6 May 23 Sale 3 May 30 Purchase 10 $40 Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the average inventory cost method. Answer $250 $160 $200 $204 Add Question Here Question 66 Multiple Choice 0 points Modify Remove Question Use the following information to answer Questions 23-28. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. Date May 3 May 10 May 17 May 20 May 23 May 30 Product Z Purchase Sale Purchase Sale Sale Purchase Units 5 3 10 6 3 10 Cost $30 $34 $40 Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the FIFO inventory cost method. Answer $264 $502 $400 $790 Add Question Here Question 67 Multiple Choice 0 points Modify Remove Question Use the following information to answer Questions 23-28. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. Date Product Z Units Cost May 3 Purchase 5 $30 May 10 Sale 3 May 17 Purchase 10 $34 May 20 Sale 6 May 23 Sale 3 May 30 Purchase 10 $40 Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method. Answer $78 $90 $102 $180 Add Question Here Question 68 Multiple Choice 0 points Modify Remove Question Use the following information to answer Questions 23-28. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. Date Product Z Units Cost May 3 Purchase 5 $30 May 10 Sale 3 May 17 Purchase 10 $34 May 20 Sale 6 May 23 Sale 3 May 30 Purchase 10 $40 Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May the LIFO inventory cost method. Answer $362 $548 $520 $494 Add Question Here Question 69 Multiple Choice 0 points Modify Remove Question Use the following information to answer Questions 23-28. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. Date Product Z Units Cost May 3 Purchase 5 $30 May 10 Sale 3 May 17 Purchase 10 $34 May 20 Sale 6 May 23 Sale 3 May 30 Purchase 10 $40 Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the average inventory cost method. Answer $502 $452 $500 $450 Add Question Here Question 70 Multiple Choice 0 points Modify Remove Question Beginning inventory, purchases and sales data for tennis rackets are as follows: Apr 3 Inventory 12 units @ $45 11 14 21 25 Purchase Sale Purchase Sale 13 units 18 units 9 units 10 units @ @ $47 $60 Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under First-in, first-out: Answer cost of merchandise sold $1,151; ending inventory $180 cost of merchandise sold $180; ending inventory $1,151 cost of merchandise sold $1,331; ending inventory $360 cost of merchandise sold $360; ending inventory $1,331 Correct Feedback Cost of merchandise sold = $1,331 (540+282+329+180) Ending Inventory = $360 (6 units @ $60) Cost of Merchandise Sold Total Cost Qty Unit Total Cost Cost 611.00 12 6 9 60 540.00 7 3 47.00 60.00 45.00 47.00 Date Apr 3 Apr 11 Apr 14 Apr 21 Apr 25 Incorrect Feedback Purchases Qty Unit Cost 13 47.00 Inventory Qty Unit Total Cost Cost 12 45.00 540.00 12 45.00 540.00 13 47.00 611.00 540.00 7 47.00 329.00 282.00 7 47.00 329.00 9 60.00 540.00 329.00 6 60.00 360.00 180.00 Cost of merchandise sold = $1,331 (540+282+329+180) Ending Inventory = $360 (6 units @ $60) Cost of Merchandise Sold Total Cost Qty Unit Total Cost Cost 611.00 12 6 9 60 540.00 7 3 47.00 60.00 45.00 47.00 Date Apr 3 Apr 11 Apr 14 Apr 21 Apr 25 Purchases Qty Unit Cost 13 47.00 Inventory Qty Unit Total Cost Cost 12 45.00 540.00 12 45.00 540.00 13 47.00 611.00 540.00 7 47.00 329.00 282.00 7 47.00 329.00 9 60.00 540.00 329.00 6 60.00 360.00 180.00 Add Question Here Question 71 Multiple Choice 0 points Modify Remove Question Beginning inventory, purchases and sales data for tennis rackets are as follows: Apr 3 11 14 21 25 Inventory Purchase Sale Purchase Sale 12 units 13 units 18 units 9 units 10 units @ @ @ $25 $27 $30 Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under Last-in, first-out: Answer cost of merchandise sold $771; ending inventory $150 cost of merchandise sold $120; ending inventory $621 cost of merchandise sold $621; ending inventory $145 cost of merchandise sold $150; ending inventory $771 Correct Feedback Cost of merchandise sold = $771 (351+125+270+25) Ending Inventory = $150 (6 units @ $25) Cost of Date Apr 3 Apr 11 Apr 14 Apr 21 Apr 25 Incorrect Feedback 9 30 270.00 9 1 30.00 25.00 Qty 13 Purchases Unit Cost Total Cost 27.00 351.00 13 5 27.00 25.00 Merchandise Sold Inventory Qty Unit Cost Total Cost 12 25.00 300.00 12 25.00 300.00 13 27.00 351.00 351.00 7 25.00 175.00 125.00 7 25.00 175.00 9 30.00 270.00 270.00 6 25.00 150.00 25.00 Qty Unit Cost Total Cost Cost of merchandise sold = $771 (351+125+270+25) Ending Inventory = $150 (6 units @ $25) Cost of Date Apr 3 Apr 11 Apr 14 Apr 21 9 30 270.00 Qty 13 Purchases Unit Cost Total Cost 27.00 351.00 13 5 27.00 25.00 Merchandise Sold Inventory Qty Unit Cost Total Cost 12 25.00 300.00 12 25.00 300.00 13 27.00 351.00 351.00 7 25.00 175.00 125.00 7 25.00 175.00 Qty Unit Cost Total Cost Apr 25 9 1 30.00 25.00 270.00 25.00 9 6 30.00 25.00 270.00 150.00 Add Question Here Question 72 Multiple Choice 0 points Modify Remove Question The following lots of a particular commodity were available for sale during the year Beginning inventory First purchase Second purchase Third purchase 10 units at $50 25 units at $55 30 units at $60 15 units at $65 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the first-in, first-out method? Answer $1,250 $1,150 $1,275 $1,050 Add Question Here Question 73 Multiple Choice 0 points Modify Remove Question The following lots of a particular commodity were available for sale during the year: Beginning inventory First purchase Second purchase Third purchase 10 units at $30 25 units at $32 30 units at $34 10 units at $35 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the last-in, first-out method? Answer $655 $620 $690 $659 Add Question Here Question 74 Multiple Choice 0 points Modify Remove Question The following lots of a particular commodity were available for sale during the year: Beginning inventory First purchase Second purchase Third purchase 5 units at $61 15 units at $63 10 units at $74 10 units at $77 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year according to the average cost method? Answer $1,380 $1,375 $1,510 $1,220 Add Question Here Question 75 Multiple Choice 0 points Modify Remove Question Under a periodic inventory system Answer accounting records continuously disclose the amount of inventory a separate account for each type of merchandise is maintained in a subsidiary ledger a physical inventory is taken at the end of the period merchandise inventory is debited when goods are returned to vendors Add Question Here Question 76 Multiple Choice 0 points Modify Remove Question The following lots of a particular commodity were available for sale during the year: Beginning inventory First purchase Second purchase Third purchase 10 units at $55 25 units at $65 30 units at $68 15 units at $70 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year according to the lower of cost or market, using the first-in, first-out method, if the current replacement cost is $68 a unit? Answer $1,200 $1,100 $1,360 $1,390 Add Question Here Question 77 Multiple Choice 0 points Modify Remove Question During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is Answer FIFO LIFO average cost weighted average Add Question Here Question 78 Multiple Choice 0 points Modify Remove Question During times of rising prices, which of the following is not an accurate statement? Answer Average costing will yield results that are between those of FIFO and LIFO. LIFO will result in a higher cost of goods sold than FIFO. FIFO will result in a higher net income than LIFO. LIFO will result in higher income taxes than FIFO. Add Question Here Question 79 Multiple Choice 0 points Modify Remove Question If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is Answer periodic LIFO FIFO average Add Question Here Question 80 Multiple Choice 0 points Modify Remove Question If merchandise inventory is being valued at cost and the purchase price is steadily falling, which method of costing will yield the largest net income? Answer average cost LIFO FIFO weighted average Add Question Here Question 81 Multiple Choice 0 points Modify Remove Question During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory. Answer average method LIFO method FIFO method can not tell without more information Add Question Here Question 82 Multiple Choice 0 points Modify Remove Question Damaged merchandise that can be sold only at prices below cost should be valued at Answer net realizable value LIFO FIFO average Add Question Here Question 83 Multiple Choice 0 points Modify Remove Question If a manufacturer ships merchandise to a retailer on consignment, the unsold merchandise should be included in the inventory of the Answer consignee retailer manufacturer shipper Add Question Here Question 84 Multiple Choice 0 points Modify Remove Question Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and stockholders equity? Answer net income is overstated, assets are overstated, stockholders equity is understated net income is overstated, assets are overstated, stockholders equity is overstated net income is understated, assets are understated, stockholders equity is understated net income is understated, assets are understated, stockholders equity is overstated Add Question Here Question 85 Multiple Choice 0 points Modify Remove Question Merchandise inventory at the end of the year was understated. Which of the following statements correctly states the effect of the error? Answer net income is understated net income is overstated cost of merchandise sold is understated merchandise inventory reported on the balance sheet is overstated Add Question Here Question 86 Multiple Choice 0 points Modify Remove Question Merchandise inventory at the end of the year is overstated. Which of the following statements correctly states the effect of the error? Answer stockholders equity is overstated cost of merchandise sold is overstated gross profit is understated net income is understated Add Question Here Question 87 Multiple Choice 0 points Modify Remove Question If the cost of an item of inventory is $50 and the current replacement cost is $57, the amount included in inventory according to the lower of cost or market is Answer $7 $50 $57 $107 Add Question Here Question 88 Multiple Choice 0 points Modify Remove Question Kristins Boutiques has identified the following items for possible inclusion in its December 31, 2010 inventory. Which of the following would not be included in the year end inventory? Answer Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at Kristins Boutique as of December 31, 2010. Kristin has in its warehouse merchandise on consignment from Abby Co. Kristin has sent merchandise to various retailers on a consignment basis Kristin has merchandise on hand which has been returned by customers because of wrong size. Add Question Here Question 89 Multiple Choice 0 points Modify Remove Question During the taking of its physical inventory on December 31, 2010, Barrys Bike Shop incorrectly counted its inventory as $270,000 instead of the correct amount of $190,000. The effect on the balance sheet and income statement would be as follows: Answer assets overstated by $80,000;retained earnings understated by $80,000; net income statement understated by $80,000. assets overstated by $80,000;retained earnings understated by $80,000; no effect on the income statement. assets and retained earnings overstated by $80,000; net income overstated by $80,000;. assets and retained earnings overstated by $80,000; net income understated by $80,000. Add Question Here Question 90 Multiple Choice 0 points Modify Remove Question If a company mistakenly counts more items during a physical inventory than actually exist, how will the error affect their bottom line? Answer No change to net income. Net income will be overstated Net income will be understated. Only gross profit will be affected. Add Question Here Question 91 Multiple Choice 0 points Modify Remove Question If a company mistakenly counts less items during a physical inventory than actually exist, how will the error affect the cost of merchandise sold? Answer Understated Overstated Only inventory is affected. No change. Add Question Here Question 92 Multiple Choice 0 points Modify Remove Question The method of computing inventory that uses records of the selling prices of the merchandise is called Answer retail method last-in, first-out first-in, first-out average cost Add Question Here Question 93 Multiple Choice 0 points Modify Remove Question On the basis of the following data, what is the estimated cost of the merchandise inventory on May 31 by the retail method? May 1 May 1-31 May 1-31 Answer Merchandise Inventory Purchases (net) Sales (net) $250,000 $360,000 $172,500 $187,500 Add Question Here Cost $125,000 235,000 Retail $166,667 313,333 230,000 Question 94 Multiple Choice 0 points Modify Remove Question If the estimated rate of gross profit is 30%, what is the estimated cost of the merchandise inventory on September 30, based on the following data? Sep. 1 Sep. 1-30 Sep. 1-30 Answer Merchandise inventory Purchases (net) (net) Sales $380,000 $320,000 $275,000 $105,000 Add Question Here $ 125,000 300,000 150,000 Question 95 Multiple Choice Question Too much inventory on hand Answer reduces solvency 0 points Modify Remove increases the cost to safeguard the assets increases the losses due to price declines all of the above Add Question Here Question 96 Multiple Choice 0 points Modify Remove Question Inventory turnover Answer is computed by dividing average inventory by cost of merchandise sold measures the relationship between the volume of goods sold and amount of inventory carried increases the risk of loss from damaged merchandise is computed by dividing the beginning inventory plus the ending inventory by two Add Question Here Question 97 Multiple Choice 0 points Modify Remove Question The number of days' sales in inventory Answer measures the length of time it takes to acquire, sell, and replace the inventory is computed by dividing the cost of merchandise sold by 365 measures the length of time it takes to sell the merchandise on credit and collect the account receivable is about the same for all industries Add Question Here Question 98 Multiple Choice 0 points Modify Remove Question A company will most likely use an estimated method of estimating inventory when Answer the company decides not to do a physical inventory. a natural disaster has destroyed most of their inventory. the company has not kept up with their inventory records. trying to determine the amount of theft that has taken place. Add Question Here Question 99 Multiple Choice 0 points Modify Remove Question Garrison Company uses the retail method of inventory costing. They started the year with an inventory that had a retail cost of $45,000. During the year they purchased an inventory with a retail cost of $300,000. After performing a physical inventory, they calculated their inventory at $80,000. The mark up is 100% of cost. Determine the ending inventory at its estimated cost. Answer $160,000 $80,000 $40,000 $45,000 Add Question Here Question 100 Essay 0 points Modify Remove Question List three different security measures taken by stores to safeguard inventory. Answer Answers may vary. - Inventory should be stored in a warehouse or restricted area. - Physical devices such as two-way mirrors, cameras, security guards. - Inventory store under lock and key. - Sensors at each of the exits which are set off by alarm tags. Add Question Here Question 101 Essay 0 points Modify Remove Question The three identical units of Product Basic H are purchased during July, as shown below. Date July 3 July 10 July 24 Product Basic H Purchase Purchase Purchase Total Average cost per unit Assume one unit sells on July 28 for $45. Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using (a) first in first out, (b) last in last out, (c) average cost flow methods. Answer Gross Profit Cost of Merchandise Sold Ending Inventory a) First in first out $45 - $35= $10 $35 $73 Units 1 1 1 3 Cost $35 $36 $37 $108 $36 b) Last in first out c) Average $45 - $37= $8 $45 - $36= $9 $37 $36 $71 $72 Add Question Here Question 102 Essay 0 points Modify Remove Question Beginning inventory, purchases, and sales for Product - Weld TM are as follows: Sep. 1 Sep. 5 Sep. 17 Sep. 30 Beginning Inventory Sale Purchase Sale 24 units 17 units 10 units 8 units @ @ $10 $15 Assuming a perpetual inventory system and the first-in, first-out method, determine (a) the cost of the merchandise sold for the September 30 sale and (b) the inventory on September 30. Answer a) Cost of merchandise sold: 7 units @ 10 = $70 1 unit @ 15 = $15 8 units $85 b) Inventory, September 30 9 units @ $15 = $135 Add Question Here Question 103 Essay 0 points Modify Remove Question Beginning inventory, purchases, and sales for Product - Weld TM are as follows: Sep. 1 Sep. 5 Sep. 17 Sep. 30 Beginning Inventory Sale Purchase Sale 24 units 17 units 10 units 8 units @ @ $10 $15 Assuming a perpetual inventory system and the last-in, first-out method, determine (a) the cost of the merchandise sold for the September 30 sale and (b) the inventory on September 30. Answer a) Cost of merchandise sold: 8 units @ $15 = $120 b) Inventory September 7 units @ $10 = $70 2 units @ $15 = $30 9 units $100 Add Question Here Question 104 Essay 0 points Modify Remove Question The units of Manganese Plus available for sale during the year were as follows: Mar 1 June 16 Nov 28 Inventory Purchase Purchase 16 units 30 units 45 units @ @ @ $30 $35 $39 There are 15 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the inventory cost by (a) FIFO, (b) LIFO, and (c) average cost methods. Answer FIFO: 15 units @ $39 = $585 LIFO: 15 units @ $30 = $450 Average: 15 units @ $36.10 = $541.50 Add Question Here Question 105 Essay 0 points Modify Remove Question The units of Manganese Plus available for sale during the year were as follows: Mar 1 June 16 Nov 28 Inventory Purchase Purchase 16 units 30 units 45 units @ @ @ $30 $35 $39 There are 15 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the difference in gross profit between the LIFO and FIFO inventory cost systems. Answer FIFO Cost of Merchandise Sold = $2,700 LIFO Cost of Merchandise Sold = $2,835 Difference $ 135 Add Question Here Question 106 Essay 0 points Modify Remove Question Using the lower of cost or market, what should the total inventory value be for the following items: Item A B C Answer Item Quantity Unit cost price Unit market Total cost price Total market price price $15 $14.50 $3,000 $2,900 Lower of cost or market $2,900 Quantity 200 100 50 Unit cost price $15 $14 $17 Unit market Total cost price Total market price price $14.50 $3,000 $2,900 $15.00 $1,400 $1,500 $17.50 $850 $875 A 200 B C 100 50 $14 $17 $15.00 $17.50 $1,400 $850 $1,500 $875 $1,400 $850 $5,150 Add Question Here Question 107 Essay 0 points Modify Remove Question During the taking of its physical inventory on December 31, 2009, Gentry Supplies Company incorrectly counted its inventory as $245,000 instead of the correct amount of $254,000. Indicate the affect of the misstatement on Gentry Supplies Companys balance sheet and income statement for the year ended December 31, 2009. Answer Amount of Misstatement Overstatement (Understatement) Balance Sheet: Merchandise inventory understated ($9,000) Current assets understated ($9,000) Total assets understated ($9,000) Stockholders equity understated ($9,000) Income Statement: Cost of merchandise sold overstated Gross profit understated Net Income understated $9,000 ($9,000) ($9,000) Add Question Here Question 108 Essay 0 points Modify Remove Question If, while taking a physical inventory, the company counts their inventory figures less than the actual amount. How will the error affect their bottom line? Answer Net income will be understated. Add Question Here Question 109 Essay 0 points Modify Remove Question Gena Company uses the retail method of inventory costing. They started January 1, 2010, with an inventory that had a retail price of $35,000 and a cost of $17,500. During the year, the company purchased an inventory with a retail price of $300,000 and a cost of $156,700. If retail sales for 2010 were $200,000, present the following: a. Ratio of cost to retail price. b. Merchandise Inventory, December 31, 2010 at retail c. Merchandise Inventory, December 31, 2010 at estimated cost Answer Cost Retail Merchandise Inventory, Jan. 1, 2010 $ 17,500 $ 35,000 2010 Purchases 156,700 300,000 Merchandise available for sale $ 174,200 $ 335,000 $174,200 Ratio of cost to retail price: ----------------- = 52% $335,000 Sales for 2010 200,000 Merchandise Inventory, Dec. 31, 2010 @ retail $135,000 Merchandise Inventory, Dec. 31, 2010 @ cost $70,200 ($135,000 x 52%) Add Question Here Question 110 Essay 0 points Modify Remove Question A business using the retail method of inventory costing determines that merchandise inventory at retail is $1,700,000. If the ratio of cost to retail price is 55%, what is the amount of inventory to be reported on the financial statements? Answer $1,700,000*55% = $935,000 Add Question Here Question 111 Essay 0 points Modify Remove Question Based upon the following data estimate the cost of ending merchandise inventory: Sales (net) Estimated gross profit rate Beginning merchandise inventory Purchases (net) Merchandise available for sale Answer Merchandise available for sale Less cost of merchandise sold ($2,500,000 * (100% - 25%) Estimated ending merchandise inventory $2,500,000 25% $90,000 $2,110,000 $2,200,000 $2,200,000 $1,875,000 $ 325,000 Add Question Here Question 112 Essay 0 points Modify Remove Question The units of an item available for sale during the year were as follows: January 10 Inventory 27 units @ $90 February 27 Purchase 54 units @ $98 July 11 Purchase 63 units @ $106 November 13 Purchase 36 units @ $115 There are 50 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method. Show your work. Answer a. $5,624 (36 units at $115 plus 14 units at $106) = $4,140 + $1,484 b. $4,684 (27 units at $90 plus 23 units at $98) = $2,430 + $2,254 c. $5,150 (50 units at $103; $18,540/180 units = $103) Cost of merchandise available for sale: 27units at $90 $2,430 54units at $98 63units at $106 36units at $115 180units (at average cost of $103) 5,292 6,678 4,140 $18,540 Add Question Here Question 113 Essay 0 points Modify Remove Question The units of an item available for sale during the year were as follows: January 11 Inventory 60 units @ $145 February 27 Purchase 90 units @ $150 November 21 Purchase 75 units @ $154 There are 48 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method. Show your work. Answer a. First-in, first-out (FIFO) method: $7,392 = (48 units $154) b. Last-in, first-out (LIFO) method: $6,960 = (48 units $145) c. Average cost method: $7,200 (48 units $150.00), where average cost = $150.00 = $33,750/225 units Cost of merchandise available for sale: 60units at $145 90units at $150 75units at $154 225units (at average cost of $150) $8,700 13,500 11,550 $33,750 Add Question Here Question 114 Essay 0 points Modify Remove Question On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work. Item Product C Product D Answer 1 2 3 4 5 6 A Inventory Quantity 420 370 B Inventory Quantity 420 370 Unit Cost Price $6 12 C Unit Cost Price $6 12 D Unit Market Price $5 14 E F Total Market $2,100 5,180 $7,280 Unit Market Price $5 14 G Lower of C or M $2,100 4,440 $6,540 1 2 3 4 5 6 Item Product C Product D Total Cost $2,520 4,440 $6,960 Add Question Here Question 115 Essay 0 points Modify Remove Question On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work. Item Gear X Gear Y Answer A 1 2 3 4 5 6 B Inventory Quantity 100 75 C Unit Cost Price $33 27 D Unit Market Price $29 28 E F Total Market $2,900 2,100 $5,000 G Lower of C or M $2,900 2,025 $4,925 1 2 3 4 5 6 Inventory Quantity 100 75 Unit Cost Price $33 27 Unit Market Price $29 28 Item Gear X Gear Y Total Cost $3,300 2,025 $5,325 Add Question Here Question 116 Essay 0 points Modify Remove Question Three identical units of Item Magnesium XP are purchased during May, as shown below. Item Magnesium XP Units Cost May 3 Purchase 1 May 10 Purchase 1 May 19 Purchase 1 Total 3 Average cost per unit $136 (= $408 / 3) $130 136 142 $408 Assume that one unit is sold on May 23 for $153. Determine the gross profit for May and ending inventory on May 31 using (a) FIFO, (b) LIFO, and (c) average cost methods. Ending Inventory Answer Gross Profit a. First-in, first-out (FIFO) $23 ($153 $130) $278 ($136 + $142) b. c. Last-in, first-out (LIFO) Average cost $11 ($153 $142) $17 ($153 $136) $266 ($130 + $136) $272 ($136 2) Add Question Here Question 117 Essay 0 points Modify Remove Question Three identical units of Item Steele Plate are purchased during March, as shown below. Item Steele Plate Units Cost Mar. 3 Purchase 1 $800 Mar. 10 Purchase 1 840 Mar. 19 Purchase 1 880 Total 3 $2,520 Average cost per unit $840 (= $2,520 / 3) Assume that one unit is sold on March 23 for $1,025. Determine the gross profit for March and ending inventory on March 31 using (a) FIFO, (b) LIFO, and (c) average cost methods. Answer Gross Profit Ending Inventory a. b. c. First-in, first-out (FIFO) Last-in, first-out (LIFO) Average cost $225 ($1,025 $800) $145 ($1,025 $880) $185 ($1,025 $840) $1,720 ($840+ $880) $1,640($800 + $840) $1,680 ($840 2) Add Question Here Question 118 Essay 0 points Modify Remove Question Safeguarding inventory from damage or theft is a primary objective for the control of inventory. If you were running a clothing store, name three specific controls you would implement to guard inventory from theft. Answer Answers may vary. Some of these include ink tags, alarm tags, bells that signal a customer is entering the area to try on clothing, or chains that hook through the sleeves of garment and are locked onto clothing racks. Add Question Here Question 119 Essay 0 points Modify Remove Question The following units of a particular item were available for sale during the year: Beginning inventory 150 units @ $755 Sale 120 units @ $925 First purchase 400 units @ $785 Sale 200 units @ $925 Second purchase 300 units @ $805 Sale 290 units @ $925 The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year. What is the total cost of ending inventory according to FIFO? Answer $193,200 ($805 240 units) Add Question Here Question 120 Essay 0 points Modify Remove Question The following units of a particular item were available for sale during the year: Beginning inventory 150 units @ $755 Sale 120 units @ $925 First purchase 400 units @ $785 Sale 200 units @ $925 Second purchase 300 units @ $805 Sale 290 units @ $925 The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year. What is the total cost of ending inventory according to LIFO? Answer $187,700 [($755 30 units) + ($785 200 units) + ($805 10 units)] = $22,650 + $157,000 + $8.050 Add Question Here Question 121 Essay 0 points Modify Remove Question The following data were taken from the annual reports of Jong Inc., a manufacturer of fireworks, and Hobson Inc., a manufacturer of computers. Jong, Inc. $830,000 $185,000 $235,000 Hobson, Inc. $11,540,000 315,000 155,000 Cost of Goods Sold Inventory, end of year Inventory, beginning of year (a) Determine the inventory turnover for Jong and Hobson, rounded to two decimal places. (b) Would you expect Jongs inventory turnover to be higher or lower than Hobsons? Why? Answer a. Jong Inc.: 3.95 {$830,000/[($185,000 + $235,000)/2]} Apple: 49.11 {$11,540,000/[($315,000 + $155,000)/2]} b. You would expect Jongs inventory turnover to be lower. Although Jongs business is seasonal in nature, with most of its revenue generated during the major holidays, much of its nonholiday inventory may turn over very slowly. Hobson, on the other hand, turns its inventory over very fast because it maintains a low inventory, which allows it to respond quickly to customer needs. Additionally, Hobsons computer products can quickly become obsolete, so it cannot risk building large inventories. Add Question Here Question 122 Essay 0 points Modify Remove Question List the internal control objectives illustrated by the following: (a) (b) (c) Answer keeping the inventory storeroom locked counting the inventory at the end of the accounting period and comparing it with the inventory ledger clerk's records using subsidiary ledgers and a perpetual inventory system (a) (b) (c) safeguarding the inventory to prevent theft separating responsibilities for related operations properly reporting inventory in the financial statements Add Question Here Question 123 Essay 0 points Modify Remove Question The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account: June 1 6 8 16 Balance Sale Purchase Sale 25 units at $60 20 units 20 units at $61 10 units 20 23 30 (a) (b) Answer Purchase Sale Purchase 20 units at $62 25 units 15 units at $63 Determine the cost of the inventory balance at June 30, using (1) the first-in, first-out method and (2) the last-in, first-out method. Identify the quantity, unit price, and total cost of each lot in the inventory. Present the journal entry to record a shortage (shrinkage) of $75 discovered by the physical count on June 30. (a) (1) June 20 30 June 1 8 30 10 units at $62 15 units at $63 Total 5 units at $60 5 units at $61 15 units at $63 Total 75 75 Add Question Here $ 620 945 $1,565 $ 300 305 945 $1,550 (2) (b) Inventory Shrinkage (or Cost of Merchandise Sold) Merchandise Inventory Question 124 Essay 0 points Modify Remove Question Beginning inventory, purchases and sales data for hammers are as follows: Mar 3 11 14 21 25 Inventory Purchase Sale Purchase Sale 12 units 13 units 18 units 9 units 10 units @ @ @ $25 $27 $30 Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under the following assumptions: a. First-in, first-out b. Last-in, first-out Answer a. Cost of merchandise sold = $741 (300+162+189+90) Ending Inventory = $180 (6 units @ $30) Cost of Merchandise Sold Purchases Inventory Date Qty Unit Cost Total Cost Qty Unit Cost Total Cost Qty Unit Cost Total Cost Mar 3 12 25 300 Mar 11 13 27 351 12 25 300 13 27 351 Mar 14 12 25 300 7 27 189 6 27 162 Mar 21 9 30 270 7 27 189 9 30 270 Mar 25 7 27 189 6 30 180 3 30 90 b. Cost of merchandise sold = $771 (351+125+270+25) Ending Inventory = $150 (6 units @ $25) Cost of Merchandise Sold Purchases Date Qty Unit Cost Total Cost Qty Unit Cost Total Cost Mar 3 Mar 11 13 27 351 Mar 14 Mar 21 Mar 25 9 30 270 9 1 30 25 13 5 27 25 Inventory Qty Unit Cost Total Cost 12 25 300 12 25 300 13 27 351 351 7 25 175 125 7 25 175 9 30 270 270 6 25 150 25 Add Question Here Question 125 Essay 0 points Modify Remove Question The units of an item available for sale during the year were as follows: Jan. 1 Mar. 4 June 7 Nov. 15 Inventory Purchase Purchase Purchase 20 units at $45 10 units at $50 30 units at $58 15 units at $65 There are 25 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the first-in, first-out costing method. Answer $1,555 (15 units at $65 and 10 units at $58) Add Question Here Question 126 Essay 0 points Modify Remove Question The units of an item available for sale during the year were as follows: Jan. 1 Apr. 4 May. 20 Oct. 30 Inventory Purchase Purchase Purchase 15 units at $25 10 units at $24 20 units at $28 18 units at $30 There are 19 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by the last-in, first-out method. Answer $471 (15 units at $25 and 4 units at $24) Add Question Here Question 127 Essay 0 points Modify Remove Question The beginning inventory and purchases of an item for the period were as follows: Beginning inventory First purchase Second purchase Third purchase 6 units at $70 each 10 units at $75 each 18 units at $80 each 10 units at $85 each The company uses the periodic system, and there were 15 units in the inventory at the end of the period. Determine the cost of the 15 units in the inventory by each of the following methods, presenting details of your computations: (a) first-in, first-out; (b) last-in, first-out; (c) average cost. Register to View Answer10 units @ $85 $ 850 5 units @ $80 400 Total $1,250 (b) 6 units @ $70 9 units @ $75 Total (c) Average unit cost = $3,460/44 15 units @ $78.64 = $ $ 420 675 $1,095 78.64 $1,179.60 Add Question Here Question 128 Essay 0 points Modify Remove Question Beginning inventory, purchases and sales data for T-shirts are as follows: Apr 3 11 14 21 25 Inventory Purchase Sale Purchase Sale 24 units 26 units 36 units 18 units 20 units @ @ @ $10 $12 $15 Assuming the business maintains a periodic inventory system, calculate the cost of merchandise sold and ending inventory under the following assumptions: a. First-in, first-out b. Last-in, first-out Answer a. Cost of Merchandise Sold = $642.00 Ending Inventory = $180 (12 units @ $15) Apr 3 Apr 11 Apr 21 Inventory Purchase Purchase Available for Sale Sale Sale Cost of Merchandise Sold Ending Inventory 24 units @ 10 26 units @ 12 18 units @ 15 68 24 units @ 10 12 units @ 12 14 units @ 12 6 units @ 15 56 12 units @ 15 $240 312 270 $822 $240 144 168 90 $642 $180 Apr 14 Apr 25 b. Cost of Merchandise Sold = $702.00 Ending Inventory = $120 (12 units @ $10) Apr 3 Apr 11 Apr 21 Inventory Purchase Purchase Available for Sale Sale Sale Cost of Merchandise Sold Ending Inventory 24 units @ 10 26 units @ 12 18 units @ 15 68 18 units @ 15 18 units @ 12 8 units @ 12 12 units @ 10 28 12 units @ 10 $240 312 270 $822 $270 216 96 120 $702 $120 Add Question Here Apr 14 Apr 25 Question 129 Essay 0 points Modify Remove Question Daytona Sales, which uses periodic inventory, has a beginning balance in mens shirts of 14 at $15.00 each. Daytona Sales purchases mens shirts in the order of: Mar 7th, 24 shirts at $15.10 each, Mar 12th, 24 shirts at $15.50 each, Mar 18th, 24 shirts at $16.00 each, and Mar 24th, 24 shirts at $16.25 each. Daytonas sales are in the order of: for the week ending March 7th, 6 at $30.00, for the week ending March 14th, 15 at $30.00, for the week ending March 21st, 12 at $30.00, For the week ending March 28th, 14 at $25.00, and for the partial week ending March 31st, 6 at $30.00. (a) For the month of March, compute the quantity and value of inventory available for sale. (b) For the month of March, compute the quantity and value of sales, assume that all sales are cash, journalize that value as of March 31st. (c) For the month of January, compute the cost of goods sold using LIFO and journalize that value as of January 31st. Register to View AnswerFor the month of March, compute the quantity and value of inventory available for sale. Beginning balance 14 shirts at $15.00 each = 210.00 Mar 7th 24 shirts at $15.10 each = 362.40 Mar 12th 24 shirts at $15.50 each = 372.00 Mar 18th 24 shirts at $16.00 each = 384.00 Mar 24th 24 shirts at $16.25 each = 390.00 Cost of goods available for sale 110 shirts 1,718.40 (b) For the month of January, compute the quantity and value of sales, assume that all sales are cash, journalize that value as of January 31st. For the week ending Mar 7th 6 at $30.00 = $180.00 For the week ending Mar 14th 15 at $30.00 = 450.00 For the week ending Mar 21st 12 at $30.00 = 360.00 For the week ending Mar 28th 14 at $25.00 = 350.00 For the partial week ending Mar 31st 6 at $30.00 = 180.00 Total of 53 mens shirts at a value of sales for March $1,520.00 Mar 31 Cash Sales 1,520.00 1,520.00 (c) For the month of March, compute the cost of goods sold using LIFO and journalize that value as of March 31st. Total number of mens shirts available for sale = 110 Total number of mens shirts sold = 53 Total number of mens shirts remaining in inventory = 57 These 57 shirts are the first 57 shirts purchased - LIFO, Mar 24th Mar 18th Mar 12th Total of 53 shirts sold Mar 31 Cost of Goods Sold Inventory 24 shirts at $16.25 each= 390.00 24 shirts at $16.00 each =384.00 5 shirts at $15.50 each = 77.50 Cost of goods sold = $851.50 851.50 851.50 Add Question Here Question 130 Essay 0 points Modify Remove Question The units of Product Green-2 available for sale during the year were as follows: Apr 1 Jun 16 Sep 28 Inventory Purchase Purchase 15 units 29 units 45 units @ @ @ $30 $33 $35 There are 17 units of the product in the physical inventory at Sep 30. The periodic inventory system is used. Determine the cost of merchandise sold by (a) FIFO, (b) LIFO, and (c) average cost methods. Answer FIFO 15 units @ $30 = $450 29 units @ $33 = $957 28 units @ $35 = $980 Total $2,387 LIFO 45 units @ $35 = 27 units @ $33 = Total 72 units @ $33.51 = $1,575 $891 $2,466 $2,412.72 Add Question Here Average Question 131 Essay 0 points Modify Remove Question Basic inventory data for April 30 are presented below for a business that employs the lower of cost or market basis of inventory valuation. Unit Cost Price $ 52 155 82 58 Unit Market Price $ 55 150 85 55 Total Cost _______ _______ _______ _______ Lower of C or M _______ _______ _______ _______ Commodity A B C D (a) (b) Answer Quantity 40 10 20 35 Complete the table. Determine the amount of reduction in the inventory at April 30 attributable to market decline. (a) Total Commodity A B C D Total (b) $155 ($7,300 - $7,145) Add Question Here Cost $2,080 1,550 1,640 2,030 $7,300 Lower of C or M $2,080 1,500 1,640 1,925 $7,145 Question 132 Essay 0 points Modify Remove Question Hampton Co. took a physical count of its inventory on December 31. In addition, it had to decide whether or not the following items should be added to this count. (a) (b) (c) (d) (e) (f) Merchandise on hand had been sold earlier in the year but had been returned by customers for various warranty repairs. Hampton Co. sent merchandise on a consignment basis on December 31 just prior to the physical count. On December 22, Hampton Co. ordered merchandise on FOB destination terms. The merchandise was shipped by the supplier on December 30 but had not been received by December 31. On December 27, Hampton Co. ordered merchandise on FOB shipping point terms. The merchandise was shipped on December 29 but had not been received by December 31. Merchandise sold FOB shipping point on December 31 was picked up by the freight company just before closing on December 31. Merchandise shipped to a customer FOB shipping point was picked up by the freight company on December 28 but had not arrived at its destination as of December 31. Indicate which items should be added to (answer: yes) and which items should not be added to (answer: no) the December 31 inventory count. Register to View Answerno (b) yes (c) no (d) yes (e) no (f) no Add Question Here Question 133 Essay 0 points Modify Remove Question On December 31st, Paramount Sales conducts a wall-to-wall inventory. The Merchandise Inventory account has a debit balance of $725,000. They determine that they have $139,500 in their inventory count. Cost of Goods sold indicate $576,000. There are two sheets at the service desk of interest. One sheet indicates the items removed from Merchandise Inventory for use within the store, these items should be part of the Store Supplies account. This sheet shows a value of $5,500. The other sheet shows known shrinkages identified during the period. This sheet shows $3,250. Neither of these sheets has been journalized. Identify the unknown, and previously unidentified shrinkage value. Journalize the transfer to Store Supplies and the recognition of all shrinkages (known and unknown). Answer Calculation of unknown and previously unidentified shrinkage: Merchandise beginning balance Less cost of goods sold Less items transferred to store supplies Less known shrinkage Calculated ending balance Actual inventory Previously unidentified shrinkage Transfer to office supplies: Office Supplies Merchandise Inventory Cost of Goods Sold (Shrinkage) Merchandise Inventory $725,000 576,000 149,000 5,500 143,500 3,250 140,250 139,500 $750 Dec 31 Dec 31 5,500 5,500 4,000 4,000 Add Question Here Question 134 Essay 0 points Modify Remove Question On the basis of the following data for Barker Industries as of December 31, 2010, determine the value of the inventory at the lower of cost or market. Also, show how the merchandise inventory would appear on the balance sheet (assume that the cost was determined by the FIFO method). Commodity Size 4 Size 5 Size 6 Size 7 Answer Inventory Quantity 9 10 14 12 Unit Cost Price $17 17 23 14 Unit Market Price $19 10 20 15 Inventory valuation = $701 Inventory Quantity 9 10 14 12 Unit Cost Price $17 17 23 14 Unit Market Price $19 10 20 15 Lower of C or M $153 100 280 168 $701 Commodity Size 4 Size 5 Size 6 Size 7 Cost $153 170 322 168 $813 Market $171 100 280 180 $731 Baker Industries Balance Sheet December 31, 2010 Assets Current assets: Merchandise inventory - at lower of cost (first-in,first-out) or market $701 Add Question Here Question 135 Essay 0 points Modify Remove Question During August, the first month of the fiscal year, sales totaled $875,000 and the cost of merchandise available for sale totaled $700,000. Estimate the cost of the merchandise inventory as of August 31, based on an estimated gross profit rate of 45%. Answer Merchandise available for sale in August $700,000 Sales in July $875,000 Less estimated gross profit 393,750 ($875,000 45%) Estimated cost of merchandise sold 481,250 Estimated merchandise inventory $218,250 Add Question Here Question 136 Essay 0 points Modify Remove Question Based on the following information: compute (a) Inventory turnover; (b) Average daily cost of merchandise sold; and (c) Number of days' sales in inventory. Use a 365-day year. (d) If an inventory turnover of 12 is average for the industry, how is this company doing? Item Cost of merchandise sold Inventory Register to View Answer(b) (c) (d) 12/31/09 Amount $172,900 18,000 $160,600 $15,000 = 10.71 times $160,600 365 = $440.00 $12,000 $440.00 = 27.27 days This company is fairly close to average, but is doing worse than the industry. Add Question Here 12/31/10 Amount $160,600 12,000 Question 137 Essay 0 points Modify Remove Question On the basis of the following data, estimate the cost of the merchandise inventory at March 31 by the retail method: March 1 March 1-31 March 1-31 Answer Merchandise Inventory Purchases (net) Sales (net) Cost $250,000 850,000 Retail $350,000 1,650,000 850,000 Estimated cost of merchandise inventory, March 31 = $687,500 March 1 March 1-31 Merchandise Inventory Purchases (net) Cost $250,000 850,000 $1,100,000 Retail $350,000 1,650,000 $2,000,000 Ratio of cost to retail price: 55% (1,100,000/2,000,000) March 1 - 31 Sales (net) Merchandise Inventory, March 31 at retail Merchandise Inventory, March 31 at est. cost ($1,150,000 55%) 850,000 $1,150,000 $632,500 Add Question Here Question 138 Essay 0 points Modify Remove Question On the basis of the following data, determine the estimated cost of the inventory as of March 31 by the retail method, presenting details of the computation in good order. Mar. 1 1-31 1-31 Answer Merchandise inventory, Mar. 1 Purchases in March (net) Merchandise available for sale Ratio of cost to retail price: $617,250 $1,065,000 = 58% Sales in March (net) Merchandise inventory, March 28, at retail price Merchandise inventory, March 28, at estimated cost price ($665,000 58%) Merchandise inventory Purchases (net) Sales (net) Cost $310,000 307,250 Cost $310,000 307,250 $617,250 Retail $550,000 515,000 400,000 Retail $550,000 515,000 $1,065,000 400,000 $665,000 $385,700 Add Question Here Question 139 Essay 0 points Modify Remove Question The following data were taken from Bowman Inc. Cost of Goods Sold Inventory, end of year Inventory, beginning of the year 2010 $864,000 68,000 82,000 Determine the inventory turnover ratio and the number of days sales in inventory for Bowman Inc. Round to two decimal places. Answer Inventory turnover = Cost of merchandise sold / Average inventory Inventory turnover = 864,000 / ((68,000 + 82,000)/2) Inventory turnover = 864,000 / 75,000 Inventory turnover = 11.52 Number of days sales in inventory = Inventory, end of year / Ave daily cost of merch sold Number of days sales in inventory = 68,000 / (864,000/365) Number of days sales in inventory = 68,000 / 2,367.12 Number of days sales in inventory = 28.73 days Add Question Here

Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

UC Riverside - ACC - ACC 101A
Name Chapter 7-Sarbanes-Oxley, Internal Control, and Cash Description InstructionsModifyAdd Question HereQuestion 1True/False0 pointsModifyRemoveQuestion The Sarbanes-Oxley Act of 2002 was passed by Congress due to the public outcry after the fina
UC Riverside - ACC - ACC 101A
Name Chapter 8-Receivables Description InstructionsModifyAdd Question HereQuestion 1True/False0 pointsModifyRemoveQuestion Notes Receivable and Accounts Receivable can also be called trade receivables. Answer True False Add Question HereQuestion
UC Riverside - ACC - ACC 101A
Name Chapter 9-Fixed Assets and Intangible Assets Description InstructionsModifyAdd Question HereQuestion 1True/False0 pointsModifyRemoveQuestion Long-lived assets that are intangible in nature, used in the operations of the business, and not held
UC Riverside - ACC - ACC 101A
Name Chapter 10-Current Liabilities and Payroll Description InstructionsModifyAdd Question HereQuestion 1True/False0 pointsModifyRemoveQuestion Receiving payment prior to delivering goods or services causes a current liability to be incurred. Answ
UC Riverside - ACC - ACC 101A
Name Chapter 11-Corporations: Organization, Stock Transactions, and Dividends Description InstructionsModifyAdd Question HereQuestion 1True/False0 pointsModifyRemoveQuestion Twenty percent of all businesses in the United States are corporations an
UC Riverside - ACC - ACC 101A
Name Chapter 12-Long-Term Liabilities: Bonds and Notes Description InstructionsModifyAdd Question HereQuestion 1True/False0 pointsModifyRemoveQuestion A bond is simply a form of an interest bearing note. Answer True False Add Question HereQuestio
UC Riverside - ACC - ACC 101A
Name Chapter 13-Investments and Fair Value Accounting Description InstructionsModifyAdd Question HereQuestion 1True/False0 pointsModifyRemoveQuestion As with other assets, the cost of a bond investment includes all costs related to the purchase. A
UC Riverside - ACC - ACC 101A
Name Chapter 14-Statement of Cash Flows Description InstructionsModifyAdd Question HereQuestion 1True/False0 pointsModifyRemoveQuestion The statement of cash flows is not one of the basic financial statements. Answer True False Add Question HereQ
UC Riverside - ACC - ACC 101A
Name Chapter 15-Financial Statement Analysis Description InstructionsModifyAdd Question HereQuestion 1True/False0 pointsModifyRemoveQuestion If comparative balance sheets indicate no liability for bonds payable on the preceding year and a liabilit
UC Riverside - ACC - ACC 101A
Chapter 1 Introduction to Managerial AccountingOBJECTIVESObj 1 Obj 2 Obj 3 Obj 4Describe managerial accounting, and the role of managerial accounting in a business. Define and illustrate the following costs: direct and indirect, direct materials, direc
UC Riverside - ACC - ACC 101A
Chapter 2 Job Order Cost SystemsOBJECTIVESObj 1 Obj 2 Obj 3 Obj 4Describe accounting systems used by manufacturing businesses. Describe and prepare summary journal entries for a job order cost accounting system. Use job order cost information for decis
UC Riverside - ACC - ACC 101A
Chapter 3 Process Cost SystemsOBJECTIVESObj 1 Obj 2 Obj 3 Obj 4 Obj 5Explain and illustrate the characteristics and cost flows for a process manufacturer. Prepare a cost of production report accounting for completed units under the FIFO method. Prepare
UC Riverside - ACC - ACC 101A
Chapter 4 Cost Behavior and Cost-Volume-Profit AnalysisOBJECTIVESObj 1 Obj 2 Obj 3 Obj 4 Obj 5Classify costs by their behavior as variable costs, fixed costs, or mixed costs. Compute the contribution margin, the contribution margin ratio, and the unit
UC Riverside - ACC - ACC 101A
Chapter 5Variable Costing For Management AnalysisOBJECTIVESObj1 Obj 2 Obj 3 Obj 4 Obj 5 Obj 6Describe and illustrate income reporting under variable costing and absorption costing. Describe and illustrate income analysis under variable costing and abs
UC Riverside - ACC - ACC 101A
Chapter 6 BudgetingOBJECTIVESObj 1 Obj 2 Obj 3 Obj 4 Obj 5Describe budgeting, its objectives, and its impact on human behavior. Describe the basic elements of the budget process, the two major types of budgeting, and the use of computers in budgeting.
UC Riverside - ACC - ACC 101A
Chapter 7 Performance Evaluation Using Variances From Standard CostsOBJECTIVESObj 1 Obj 2 Obj 3 Obj 4 Obj 5 Obj 6Describe the types of standards and how they are established for businesses. Explain and illustrate how standards are used in budgeting. Ca
UC Riverside - ACC - ACC 101A
Chapter 8 Performance Evaluation for Decentralized OperationsOBJECTIVESObj 1 Obj 2 Obj 3 Obj 4 Obj 5List and explain the advantages and disadvantages of decentralized operations. Prepare a responsibility accounting report for a cost center. Prepare res
UC Riverside - ACC - ACC 101A
Chapter 9 Differential Analysis and Product PricingOBJECTIVESObj 1Obj 2 Obj 3Prepare a differential analysis report for decisions involving leasing or selling equipment, discontinuing an unprofitable segment, manufacturing or purchasing a needed part,
UC Riverside - ACC - ACC 101A
Chapter 10 Capital Investment AnalysisOBJECTIVESObj 1 Obj 2 Obj 3 Obj 4Explain the nature and importance of capital investment analysis. Evaluate capital investment proposals, using the following methods: average rate of return, cash payback, net prese
UC Riverside - ACC - ACC 101A
Chapter 11 Cost Allocation and Activity-Based CostingOBJECTIVESObj 1 Obj 2 Obj 3 Obj 4 Obj 5 Obj 6Identify three methods used for allocating factory overhead costs to products. Use a single plantwide factory overhead rate for product costing. Use multi
UC Riverside - ACC - ACC 101A
Chapter 12 Cost Management for Just-In-Time EnvironmentsOBJECTIVESObj 1 Obj 2 Obj 3 Obj 4 Obj 5Compare and contrast just-in-time (JIT) manufacturing practices with traditional manufacturing practices. Apply just-in-time manufacturing practices to a tra
UC Riverside - ACC - ACC 101A
Chapter 13 Statement of Cash FlowsOBJECTIVESObj 1 Obj 2 Obj 3Summarize the types of cash flow activities reported in the statement of cash flows. Prepare a statement of cash flows, using the indirect method. Prepare a statement of cash flows, using the
UC Riverside - ACC - ACC 101A
Chapter 14 Financial Statement AnalysisOBJECTIVESObj 1 Obj 2 Obj 3 Obj 4List basic financial statement analytical procedures. Apply financial statement analysis to assess the solvency of a business. Apply financial statement analysis to assess the prof
École Normale Supérieure - BUS - Busi307
StratSim Industry 1/Firm AAffordable Cars business strategyThe business dictionary defines a business as an economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Businesses require inv
Academy of Design Tampa - CHEM - che 435
UC Davis - CHEM 2B - 993029
UC Davis - CHEM 2B - 993029
Lecture 2 Internal Energy First Law of Thermodynamics State Functions versus Path Functions Heat Transfer during a Physical Change Heat Transfer During a Chemical Change At constant volume (qv) At constant pressure (qp) Standard State and Standard Enthal
UC Davis - CHEM 2B - 993029
Lecture 3 Using Thermochemical Equations. Hesss Law. Standard Enthalpy of Formation of a Substance. Determination of Ho : A summary. Indirect determination of Ho : A summary.TOUPADAKIS Chapter 7 Lecture 3Using Thermochemical Equations Enthalpy and the
UC Davis - CHEM 2B - 993029
Chapter 12 Why study liquids and solids?In order to answer questions like: Why is carbon dioxide normally a gas, whereas water is normally a liquid? Why do any liquids form anyway? Why do liquids freeze to solids as the temperature is lowered? Why ice fl
UC Davis - CHEM 2B - 993029
Lecture 5! ! ! ! ! ! ! ! ! Phase Diagrams and their Features. The Phase Diagrams of H2O and CO2. Types of Structures. Crystal Structure. Seven Crystal Systems or Shapes of Unit Cells. Cubic Unit Cell. Three Forms of Cubic Unit Cell. Occupancy. The Crysta
UC Davis - CHEM 2B - 993029
Chapter 13Why study solutions?In order to answer questions like: How does antifreeze work at the molecular level? How does salt work in melting ice on the roads? Why does sea water has higher boiling point than spring water? Why does a swimmers fingers
UC Davis - CHEM 2B - 993029
Lecture 7 Solution Formation as a Process Towards Equilibrium. Solubility Curves. Henrys Law: Solubility of Gases. Raoult's Law: Vapor Pressure Lowering. Fractional Distillation. Azeotropic Solutions.TOUPADAKIS Lecture 7 Chapter 13Solution Formation as
UC Davis - CHEM 2B - 993029
Lecture 8 Colligative Properties of a Solution. Solutions of Nonelectrolytes. Pure Solvent and Solution Phase Diagram. Osmotic Pressure. Osmotic Pressure in Biology. Reverse Osmosis Desalination. Solutions of Electrolytes. Vant Hoff Factor (i).TOUPADAKI
UC Davis - CHEM 2B - 993029
Lecture 9 Interionic Interactions: Debye and Hckel. Colloidal Mixtures. Summary. Problems.TOUPADAKIS Lecture 9 Chapter 13Interionic Interactions: Debye and Hckel Ions in solution do not behave independently from each other. Each ion is surrounded by o
UC Davis - CHEM 2B - 993029
Chapter 15Why study chemical equilibrium ?In order to answer questions like: How do we increase the yield of a chemical reaction in industry? Why aspirin and alcohol should not be taken together. Why and how stalagmites and stalactites form? How do we c
UC Davis - CHEM 2B - 993029
Lecture 11 Using Keq to predict the extent of a reaction.What does the size of Keq really tell us? Using Keq to calculate the extent of a reaction.Calculating equilibrium concentrations in order to find the yield of a reaction. Using Keq and Q to pre
UC Davis - CHEM 2B - 993029
Lecture 12 Le Chtelliers Principle. Factors that Alter the Composition of an Equilibrium Mixture. Concentration Pressure and Volume Temperature The No Effect of a Catalyst on the Composition of an Equilibrium Mixture.TOUPADAKIS Lecture 12 Chapter 15Wha
UC Davis - CHEM 2B - 993029
Chapter 16Why study Acids and Bases?In order to answer questions like: What makes a substance behave as an acid or as a base? How do acids and bases function in plant and animal cells for the survival of individual organisms? What are the characteristi
UC Davis - CHEM 2B - 993029
Lecture 14 Strong acids versus weak acids and strong bases versus weak bases. Percent ionization. Various ways to describe acid strength. Problems Calculating the pH of a strong acid and the pH of a weak acid solution. Calculating the pH of a strong base
UC Davis - CHEM 2B - 993029
Lecture 15Ions as Acids and Bases. The Conjugate Seesaw. Hydrolysis and the pH of Salt Solutions. Molecular Structure and Acid-Base Behavior. Lewis Acids and Bases. Complex Ions. Acid Rain.TOUPADAKIS Lecture 15 Chapter 16Ions as Acids and BasesNH4+ +
UC Davis - CHEM 2B - 993029
Lecture 16 The Common-Ion Effect in Acid-Base Equilibria. Suppression of Ionization of a Weak Acid. Suppression of Ionization of a Weak Base.TOUPADAKIS Lecture 16 Chapter 17The Common-Ion Effect in Acid-Base Equilibria The Common-Ion Effect describes t
UC Davis - CHEM 2B - 993029
Lecture 17 Buffer Solutions. Solutions of Weak Acids and Their Salts. Solutions of Weak Bases and Their Salts. How a Buffer Works. The Henderson - Hasselbalch Equation. Calculating the pH of a Buffer Solution.TOUPADAKIS Lecture 17 Chapter 17Buffer Solu
UC Davis - CHEM 2B - 993029
Lecture 18 Calculating the pH of a Buffer Solution After the Addition of a Strong Base. Buffer Capacity. Preparing a Buffer Solution. Acid-Base Indicators.TOUPADAKIS Lecture 18 Chapter 17Calculating pH Changes in Buffer SolutionsTOUPADAKIS Lecture 18
UC Davis - CHEM 2B - 993029
Lecture 19 Neutralization Reactions and Titration Curves: Terminology Titration of a Strong Acid with a Strong Base. Titration of a Strong Base with a Strong Acid. Titration of a Weak Acid with a Strong Base. Titration of a Weak Base with a Strong Acid.
UC Davis - CHEM 2B - 993029
Chapter 18Why Study Solubility and Complex-Ion Equilibria?In order to answer questions like: How does tooth enamel dissolves on acidic solutions causing tooth decay? How does fluoride in toothpaste prevent tooth decay? How does the precipitation of cer
UC Davis - CHEM 2B - 993029
Lecture 21 The Salt Effect. Salt Effect Versus Common Ion Effect. Ion Pair Formation: Incomplete Dissociation. Criteria for Precipitation: The Ion Product Qsp. Fractional Precipitation. The pH of the Solution Can Affect Solubility.TOUPADAKIS Lecture 2
UC Davis - CHEM 2B - 993029
Lecture 22Complex Ions: Definitions. Formation Constant of Complex Ions. Formation of Complex Ions Affects Solubility. Study Example 18-11. Qualitative Cation Analysis. Tooth Decay. Study Example 18-12.TOUPADAKIS Lecture 22 Chapter 18Complex Ions Comp
UC Davis - CHEM 2B - 993029
Chapter 19 Why Study Entropy and Free Energy?In order to answer questions like: Why physical and chemical changes under specified conditions tend to be favored one direction over another? What is the connection between energy and the extent of a reactio
UC Davis - CHEM 2B - 993029
Lecture 24 Determination of Stotal for a Chemical Change. Free Energy (G) and Free Energy Change (G). Criterion for Spontaneous Change based on Gsystem.TOUPADAKIS Lecture 24 Chapter 19Determination of Stotal for a Chemical ChangeStotal = Ssystem + Ssu
UC Davis - CHEM 2B - 993029
Lecture 26 Free Energy Change and Spontaneity Spontaneity of a Chemical Change at Nonstandard Conditions: G = G + RT ln Q Relationship of G to the Equilibrium Constant: G = - RT ln KeqTOUPADAKIS Lecture 26 Chapter 19Free Energy Change and Spontaneity
Baltimore Hebrew University - PHILOSOPHY - 1230uh
AN EXISTENTIAL READING OF CAMUS AND DOSTOEVSKY FOCUSING ON CAMUSS NOTION OF THE ABSURD AND SARTREAN AUTHENTICITYA Thesisby JI HYUN PARKSubmitted to the Office of Graduate Studies of Texas A&M University in partial fulfillment of the requirements for th
Wilson - MBA - mba
Supply Chain ManagementNetwork Design in the Supply Chain5-1OutlineA strategic framework for facility location x Multi-echelon networks x Gravity methods for location x Plant location modelsx5 -2Network Design DecisionsFacility role x Facility loc
Ohio State - STAT - 620
Chapter 1Probability TheoryIf any little problem comes your way, I shall be happy, if I can, to give you a hint or two as to its solution. Sherlock Holmes The Adventure of the Three Students 1.1 a. Each sample point describes the result of the toss (H o
Ohio State - STAT - 620
Chapter 2Transformations and Expectations2.1 a. fx (x) = 42x5 (1 x), 0 < x < 1; y = x3 = g (x), monotone, and Y = (0, 1). Use Theorem 2.1.5. fY (y ) = fx (g 1 (y ) = d 1 g (y ) dy = fx (y 1/3 ) d 1/3 1 (y ) = 42y 5/3 (1 y 1/3 )( y 2/3 ) dy 314y (1 y 1/
Ohio State - STAT - 622
Chapter 12Regression Models12.1 The point ( , y ) is the closest if it lies on the vertex of the right triangle with vertices (x , y ) x and (x , a + bx ). By the Pythagorean theorem, we must have (x x ) + y (a + bx ) 2 2+ (x x ) +( y ) y22= (x x )
Ohio State - STAT - 622
Chapter 11Analysis of Variance and Regression11.1 a. The rst order Taylors series approximation is Var[g (Y )] [g ()]2 VarY = [g ()]2 v (). b. If we choose g (y ) = g (y ) =y a1v (x)dx, then adg () d = d d1 v (x)dx =1 v (),by the Fundamental
Ohio State - STAT - 622
Chapter 10Asymptotic Evaluations10.1 First calculate some moments for this distribution. EX = /3, E X 2 = 1/3, VarX = 1 2 . 3 9 So 3Xn is an unbiased estimator of with variance Var(3Xn ) = 9(VarX )/n = (3 2 )/n 0 as n . So by Theorem 10.1.3, 3Xn is a c
Ohio State - STAT - 622
Chapter 9Interval Estimation9.1 Denote A = cfw_x : L(x) and B = cfw_x : U (x) . Then A B = cfw_x : L(x) U (x) and 1 P cfw_A B = P cfw_L(X ) or U (X ) P cfw_L(X ) or L(X ) = 1, since L(x) U (x). Therefore, P (A B ) = P (A)+ P (B ) P (A B ) = 1 1 +1 2 1
Ohio State - STAT - 622
Chapter 8Hypothesis Testing8.1 Let X = # of heads out of 1000. If the coin is fair, then X binomial(1000, 1/2). So1000P (X 560) =x=5601000 x1 2x1 2nx .0000825,where a computer was used to do the calculation. For this binomial, E X = 1000p = 50
Ohio State - STAT - 622
Chapter 7Point Estimation 7.1 For each value of x, the MLE is the value of that maximizes f (x|). These values are in the following table. x01 2 34 1 1 2 or 3 3 3 At x = 2, f (x|2) = f (x|3) = 1/4 are both maxima, so both = 2 or = 3 are MLEs. 7.2 a. L(
Ohio State - STAT - 622
Chapter 6Principles of Data Reduction6.1 By the Factorization Theorem, |X | is sucient because the pdf of X is f (x| 2 ) = 2 2 2 2 1 1 ex /2 = e|x| /2 = g ( |x| 2 ) 1 . 2 2h(x)6.2 By the Factorization Theorem, T (X ) = mini (Xi /i) is sucient because