ch06
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ch06

Course Number: ACCTG 507, Spring 2013

College/University: Harvard

Word Count: 12658

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To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com ch06 Student: ___________________________________________________________________________ 1. 2. Goods in transit are automatically included in inventory. True False Goods on consignment are goods shipped by their owner, called the consignee, to...

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download To more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com ch06 Student: ___________________________________________________________________________ 1. 2. Goods in transit are automatically included in inventory. True False Goods on consignment are goods shipped by their owner, called the consignee, to another party called the consignor. True False If obsolete or damaged goods can be sold, they will be included in inventory at their net realizable value. True False If the seller is responsible for paying freight charges, then ownership of inventory passes when goods arrive at their destination. True False Net realizable value for damaged or obsolete goods is sales price plus the cost of making the sale. True False The cost of an inventory item includes its invoice cost minus any discount, and plus any added or incidental costs necessary to put it in a place and condition for sale. True False When taking a physical count of inventory, the use of prenumbered inventory tickets is an application of internal control. True False Incidental costs often added to the costs of inventory include import duties, freight, storage, and insurance. True False The Inventory account is a controlling account for the inventory subsidiary ledger that contains a separate record for each separate product. True False 3. 4. 5. 6. 7. 8. 9. 10. Few companies take a physical count of inventory each year, and rely on inventory records alone to determine the inventory value. True False 11. The matching principle is used by some companies to avoid allocating incidental inventory costs to cost of goods sold. True False 12. The consistency concept prescribes that a company use the same accounting methods period after period, so that financial statements are comparable across periods. True False 13. A company can change its inventory costing method without mentioning this change in its financial statements because it is an internal management decision. True False 14. Whether purchase costs are rising or falling, FIFO always will yield the highest gross profit and net income. True False To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 15. An advantage of the weighted average inventory method is that it tends to smooth out erratic changes in costs. True False 16. In a period of rising purchase costs, FIFO usually gives a lower taxable income and therefore, yields a tax advantage. True False 17. LIFO is preferred when purchase costs are rising and managers have incentives to report higher income for reasons such as bonus plans, job security, and reputation. True False 18. The LIFO method of inventory valuation can result in a company's ending inventory being valued at less than the inventory's replacement cost because LIFO inventory leaves the oldest costs in inventory. True False 19. The full disclosure principle requires that the notes to the financial statements report a change in accounting method for inventory. True False 20. An advantage of LIFO is that it assigns the most recent costs to cost of goods sold, and does a better job of matching current costs with revenues on the income statement. True False 21. Companies are allowed to use FIFO for financial reporting and LIFO for tax reporting, according to IRS requirements. True False 22. An error in the period-end inventory balance will cause an error in the calculation of cost of goods sold. True False 23. Errors in the period-end inventory balance only affect the current period's records and financial statements. True False 24. An inventory error is sometimes said to be self-correcting because it causes an offsetting error in the next period. True False 25. An understatement of the ending inventory balance will understate cost of goods sold and overstate net income. True False 26. An understatement of the beginning inventory balance will understate cost of goods sold and overstate net income. True False 27. An understatement of ending inventory will cause an understatement of assets and equity on the balance sheet. True False 28. An overstatement of ending inventory will cause an overstatement of assets and an understatement of equity on the balance sheet. True False 29. A merchandiser's ability to pay its short-term obligations depends on many factors including how quickly it sells its merchandise inventory. True False To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 30. The inventory turnover ratio is computed by dividing average merchandise inventory by cost of goods sold. True False 31. The days' sales in inventory ratio is computed by dividing ending inventory by cost of goods sold and multiplying the result by 365. True False 32. There is no simple rule for inventory turnover, except that a high ratio is preferable provided inventory is adequate to meet demand. True False 33. It can be expected that companies selling perishable goods have a higher inventory turnover than companies selling nonperishable goods. True False 34. A company's cost of goods sold was $15,500 and its average merchandise inventory was $4,500. Its inventory turnover equals 3.4. True False 35. Tops had cost of goods sold of $8,321 million and its ending inventory was $2,027 million. Therefore its days' sales in inventory equals 89 days. True False 36. One of the most important decisions in accounting for inventory is determining the unit costs assigned to inventory items. True False 37. When units are purchased at different costs over time, determining the cost per unit assigned to inventory items is simple. True False 38. LIFO assumes that inventory costs flow in the order incurred. True False 39. The assignment of costs to cost of goods sold and inventory using weighted average usually yields different results depending on whether a perpetual or periodic system is used. True False 40. The FIFO inventory method assumes that costs for the earliest units purchased are the first to be charged to the cost of goods sold. True False 41. The costs of goods purchased will vary under the different inventory methods of specific identification, FIFO, LIFO, and weighted average. True False 42. The assignment of costs to the cost of goods sold and to ending inventory using FIFO is the same for both the perpetual and periodic inventory systems. True False 43. Under LIFO, the most recent costs are assigned to ending inventory. True False 44. The choice of an inventory valuation method can have a major impact on gross profit and cost of sales. True False 45. In applying the lower of cost or market method to inventory valuation, market is defined as the current replacement cost. True False To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 46. In applying the lower of cost or market method to inventory valuation, market is defined as the current selling price. True False 47. A company has inventory with a market value of $217,000 and a cost of $241,000. According to the lower of cost or market, the inventory should be written down to $217,000. True False 48. The lower of cost or market rule for inventory valuation must be applied to each individual unit separately, and not to major categories of inventory or to the entire inventory. True False 49. The conservatism constraint requires that when more than one estimate of the amounts to be received or paid in the future exists and these estimates are about equally likely, then the less optimistic amount is used. True False 50. A company's total cost of inventory was $305,000 and its market value is $297,000. Under the lower cost or market, the amount reported should be $305,000. True False 51. A company's cost of inventory was $317,500. Due to phenomenal demand the market value of its inventory increased to $323,000. This company should write up the value of its inventory according to the consistency principle. True False 52. When LIFO is used with the periodic inventory system, cost of goods sold is assigned costs from the most recent purchases at the point of each sale, rather than from the most recent purchases for the period. True False 53. The retail inventory method estimates the cost of ending inventory by applying the gross profit ratio to net sales. True False 54. The reasoning behind the retail inventory method is that if we can get a good estimate of the cost-to-retail ratio, we can multiply ending inventory at retail by this ratio to estimate ending inventory at cost. True False 55. The reliability of the gross profit method depends on a good estimate of the gross profit ratio. True False 56. In the retail inventory method of inventory valuation, the retail amount of inventory refers to its dollar amount measured using selling prices of inventory items. True False 57. To avoid the time-consuming process of taking an inventory each year, most companies use the gross profit method to estimate ending inventory. True False 58. Using the retail inventory method, if the cost to retail ratio is 60% and ending inventory at retail is $45,000, then estimated ending inventory at cost is $27,000. True False 59. Damaged and obsolete goods that can be sold: A. Are never counted as inventory. B. Are included in inventory at their full cost. C. Are included in inventory at their net realizable value. D. Should be disposed of immediately. E. Are assigned a value of zero. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 60. Merchandise inventory includes: A. All goods owned by a company and held for sale. B. All goods in transit. C. All goods on consignment. D. Only damaged goods. E. Only non-damaged goods. 61. Goods in transit are included in a purchaser's inventory: A. At any time during transit. B. When the purchaser is responsible for paying freight charges. C. When the supplier is responsible for freight charges. D. If the goods are shipped FOB destination. E. After the half-way point between the buyer and seller. 62. Goods on consignment: A. Are goods shipped by the owner to the consignee who sells the goods for the owner. B. Are reported in the consignee's books as inventory. C. Are goods shipped to the consignor who sells the goods for the owner. D. Are not reported in the consignor's inventory since they do not have possession of the inventory. E. Are always paid for by the consignee when they take possession. 63. Regardless of the inventory costing system used, cost of goods available for sale must be allocated between A. beginning inventory and net purchases during the period. B. ending inventory and beginning inventory. C. net purchases during the period and ending inventory. D. ending inventory and cost of goods sold. E. beginning inventory and cost of goods sold. 64. On December 31 of the current year, Hewett Company reported an ending inventory balance of $215,000. The following additional information is also available: Hewett sold goods costing $38,000 to Trump Enterprises on December 28 and shipped the goods on that date with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $215,000 because they were not in Hewett's warehouse. Hewett purchased goods costing $44,000 on December 29. The goods were shipped FOB destination and were received by Hewett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $215,000. Hewett's ending inventory balance of $215,000 included $15,000 of goods being held on consignment from Rumsfeld Company. (Hewett Company is the consignee.) Hewett's ending inventory balance of $215,000 did not include goods costing $95,000 that were shipped to Hewett on December 27 with shipping terms of FOB destination and were still in transit at year-end. Based on the above information, the correct balance for ending inventory on December 31 is: A. $194,000 B. $209,000 C. $200,000 D. $171,000 E. $156,000 To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 65. Gotham Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available: The ending inventory balance of $412,000 included $72,000 of consigned inventory for which Gotham was the consignor. The ending inventory balance of $412,000 included $22,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. The ending inventory balance of $412,000 did not include goods costing $48,000 that were purchased by Gotham on December 28 and shipped FOB destination on that date. Gotham did not receive the goods until January 2 of the following year. The ending inventory balance of $412,000 included damaged goods at their original cost of $38,000. The net realizable value of the damaged goods was $10,000. The ending inventory balance of $412,000 included $43,000 of consigned inventory for which Gotham was the consignee. Based on this information, the correct balance for ending inventory on December 31 is: A. $247,000 B. $341,000 C. $362,000 D. $309,000 E. $319,000 66. Costs included in the Merchandise Inventory account can include all of the following except: A. Invoice price minus any discount. B. Transportation-in. C. Storage. D. Insurance. E. Damaged inventory that cannot be sold. 67. Internal controls that should be applied when a business takes a physical count of inventory should include all of the following except: A. Prenumbered inventory tickets. B. A manager does not confirm that all inventories are ticketed once, and only once. C. Counters must confirm the validity of inventory existence, amounts, and quality. D. Second counts by a different counter. E. Counters of inventory should not be those who are responsible for the inventory. 68. Physical counts of inventory: A. Are not necessary under the perpetual system. B. Are necessary to adjust the Inventory account to the actual inventory available. C. Must be taken at least once a month. D. Requires the use of hand-held portable computers. E. Are not necessary under the cost-to benefit constraint. 69. During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is: A. Specific identification method. B. Average cost method. C. Weighted-average method. D. FIFO method. E. LIFO method. 70. The inventory valuation method that tends to smooth out erratic changes in costs is: A. FIFO. B. Weighted average. C. LIFO. D. Specific identification. E. WIFO. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 71. The inventory valuation method that has the advantages of assigning an amount to inventory on the balance sheet that approximates its current cost, and also mimics the actual flow of goods for most businesses is: A. FIFO. B. Weighted average. C. LIFO. D. Specific identification. E. All of these. 72. The inventory valuation method that results in the lowest taxable income in a period of inflation is: A. LIFO method. B. FIFO method. C. Weighted-average cost method. D. Specific identification method. E. Gross profit method. 73. The consistency concept: APrescribes a company to consistently apply the same accounting method of inventory valuation, an . exception being when a change from one method to another will improve its financial reporting. B. Requires a company to use one method of inventory valuation exclusively. C. Requires that all companies in the same industry use the same accounting methods of inventory valuation. D. Is also called the full disclosure principle. E. Is also called the matching principle. 74. The full disclosure principle: A Prescribes that when a change in inventory valuation method is made, the notes to the statements report . the type of change, its justification and its effect on net income. B. Requires that companies use the same accounting method for inventory valuation period after period. C. Is not subject to the materiality principle. D. Is only applied to retailers. E. Is also called the consistency principle. 75. Which of the following inventory costing methods will always result in the same values for ending inventory and cost of goods sold regardless of whether a perpetual or periodic inventory system is used? A. FIFO and LIFO B. LIFO and weighted-average cost C. Specific identification and FIFO D. FIFO and weighted-average cost E. LIFO and specific identification 76. If a period-end inventory amount is reported in error, it can cause a misstatement in all of the following except: A. Cost of goods sold. B. Gross profit. C. Net sales. D. Current assets. E. Net income. 77. An error in the period-end inventory causes an offsetting error in the next period and therefore: A. Managers can ignore the error. B. It is sometimes said to be self-correcting. C. It affects only income statement accounts. D. If affects only balance sheet accounts. E. Is immaterial for managerial decision making. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 78. The understatement of the ending inventory balance causes: A. Cost of goods sold to be overstated and net income to be understated. B. Cost of goods sold to be overstated and net income to be overstated. C. Cost of goods sold to be understated and net income to be understated. D. Cost of goods sold to be understated and net income to be overstated. E. Cost of goods sold to be overstated and net income to be correct. 79. The understatement of the beginning inventory balance causes: A. Cost of goods sold to be understated and net income to be understated. B. Cost of goods sold to be understated and net income to be overstated. C. Cost of goods sold to be overstated and net income to be overstated. D. Cost of goods sold to be overstated and net income to be understated. E. Cost of goods sold to be overstated and net income to be correct. 80. Thelma Company reported cost of goods sold for Year 1 and Year 2 as follows: Thelma Company made two errors: 1) ending inventory at the end of Year 1 was understated by $15,000 and 2) ending inventory at the end of Year 2 was overstated by $6,000. Given this information, the correct cost of goods sold figure for Year 2 would be: A. $291,000 B. $276,000 C. $264,000 D. $285,000 E. $249,000 81. Louise Company reported the following income statement information for Year 1 and Year 2: The beginning inventory balance for Year 1 is correct. The ending inventory balance for Year 2 is also correct. However, the ending inventory figure for Year 1 was overstated by $20,000. Given this information, the correct gross profit figures for Year 1 and Year 2 would be: A. $129,000 for Year 1 and $256,000 for Year 2. B. $281,000 for Year 1 and $274,000 for Year 2. C. $129,000 for Year 1 and $276,000 for Year 2. D. $169,000 for Year 1 and $236,000 for Year 2. E. $169,000 for Year 1 and $276,000 for Year 2. 82. An overstatement of ending inventory will cause A. An overstatement of assets and equity on the balance sheet. B. An understatement of assets and equity on the balance sheet. C. An overstatement of assets and an understatement of equity on the balance sheet. D. An understatement of assets and an overstatement of equity on the balance sheet. E. No effect on the balance sheet. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 83. The inventory turnover ratio: A. Is used to analyze profitability. B. Is used to measure solvency. C. Reveals how many times a company turns over (sells) its merchandise inventory. D. Validates the acid-test ratio. E. Calculation depends on the company's inventory valuation method. 84. Days' sales in inventory: A. Is also called days' stock on hand. B. Focuses on average inventory rather than ending inventory. C. Is used to measure solvency. D. Is calculated by dividing cost of goods sold by ending inventory. E. Is a substitute for the acid-test ratio. 85. The inventory turnover ratio is calculated as: A. Cost of goods sold divided by average merchandise inventory. B. Sales divided by cost of goods sold. C. Ending inventory divided by cost of goods sold. D. Cost of goods sold divided by ending inventory. E. Cost of goods sold divided by ending inventory times 365. 86. Days' sales in inventory is calculated as: A. Ending inventory divided by cost of goods sold. B. Cost of goods sold divided by ending inventory. C. Ending inventory divided by cost of goods sold times 365. D. Cost of goods sold divided by ending inventory times 365. E. Ending inventory times cost of goods sold. 87. Tops had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory of $1,965 million. Its inventory turnover equals: A. 0.21. B. 4.51. C. 4.79. D. 76.1 days. E. 80.9 days. 88. Tops had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory turnover of $1,965 million. Its days' sales in inventory equals: A. 0.21. B. 4.51. C. 4.79. D. 76.1 days. E. 80.9.days. 89. Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except: A. LIFO method. B. FIFO method. C. Specific identification method. D. Weighted average method. E. Retail method. 90. Management decisions in accounting for inventory cost include all of the following except: A. Costing method. B. Inventory system (perpetual or periodic). C. Customer demand for inventory. D. Use of market values or other estimates. E. Items included in inventory and their costs. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 91. The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the: A. Weighted average inventory method. B. First-in, first-out method. C. Last-in, first-out method. D. Specific identification method. E. Retail inventory method. 92. A company had the following purchases during the current year: On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory? A. $3,500. B. $3,800. C. $3,960. D. $3,280. E. $3,640. 93. A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, 8 units were sold for $55 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale? A. $304 B. $296 C. $288 D. $280 E. $276 94. Axme Corporation uses a weighted-average perpetual inventory system. August 2, 10 units were purchased at $12 per unit. August 18, 15 units were purchased at $14 per unit. August 29, 12 units were sold. What was the amount of the cost of goods sold for this sale? A. $148.00. B. $150.50. C. $158.40. D. $210.00. E. $330.00. 95. A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO perpetual inventory method, what is the cost of the 12 units that were sold? A. $120. B. $124. C. $128. D. $130. E. $140. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 96. A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, it purchased 10 units at $13 per unit. On August 12 it purchased 20 units at $14 per unit. On August 15, it sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 12 after the sale? A. $140. B. $160. C. $210. D. $380. E. $590. 97. A company had inventory of 5 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at $25 each. On November 8, it sold 18 units for $54 each. Using the LIFO perpetual inventory method, what was the cost of the 18 units sold? A. $395. B. $410. C. $450. D. $510. E. $520. 98. A company sells a climbing kit and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during January were as follows: If the ending inventory is reported at $276, what inventory method was used? A. LIFO method. B. FIFO method. C. Weighted average method. D. Specific identification method. E. Retail inventory method. 99. Axme uses a weighted average perpetual inventory system. August 2, 10 units were purchased at $12 per unit. August 18, 15 units were purchased at $15 per unit. August 29, 20 units were sold. August 31, 14 units were purchased at $16 per unit. What is the per-unit value of ending inventory on August 31? A. $12.00. B. $13.80. C. $15.42. D. $16.00. E. $17.74. 100.Given the following information, determine the cost of the inventory at June 30 using the LIFO perpetual inventory method. The cost of the ending inventory is A. $200. B. $220. C. $380. D. $275. E. $300. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 101.In applying the lower of cost or market method to inventory valuation, market is defined as: A. Historical cost. B. Current replacement cost. C. Current sales price. D. FIFO. E. LIFO. 102.Generally accepted accounting principles require that the inventory of a company be reported at: A. Market value. B. Historical cost. C. Lower of cost or market. D. Replacement cost. E. Retail value. 103.The conservatism constraint: A Prescribes that when multiple estimates of amounts to be received or paid in the future are equally . likely, then the least optimistic amount should be used. B. Prescribes that a company use the same accounting methods period after period. C. Prescribes that revenues and expenses be reported in the period in which they are earned or incurred. D. Prescribes that all items of a material nature be included in financial statements. E. Prescribes that all inventory items be reported at full cost. 104.A company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit. This company's current inventory consists of 200 units purchased at $16 per unit. Replacement cost has now fallen to $13 per unit. Calculate the value of this company's inventory at the lower of cost or market. A. $2,550. B. $2,600. C. $2,700. D. $3,000. E. $3,200. 105.A company has the following per unit original costs and replacement costs for its inventory: Part A: 50 units with a cost of $5, and replacement cost of $4.50 Part B: 75 units with a cost of $6, and replacement cost of $6.50 Part C: 160 units with a cost of $3, and replacement cost of $2.50 Under the lower of cost or market method, the total value of this company's ending inventory is: A. $1,180.00. B. $1,075.00. C. $1,075.00 or $1,112.50, depending upon whether LCM is applied to individual items or the inventory as a whole. D. $1,112.50. E. $1,180.00 or $1,075.00, depending upon whether LCM is applied to individual items or to the inventory as a whole. 106.A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO periodic inventory method, what is the cost of the 12 units that were sold? A. $120. B. $124. C. $128. D. $130. E. $140. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 107.A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, it purchased 10 units at $13 per unit. On August 12 it purchased 20 units at $14 per unit. On August 15, it sold 30 units. Using the FIFO periodic inventory method, what is the value of the inventory at August 15 after the sale? A. $140. B. $160. C. $210. D. $380. E. $590. 108.A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at $25 each. On November 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold? A. $470. B. $490. C. $450. D. $570. E. $520. 109.A company uses the periodic inventory system and had the following activity during the current monthly period. In a periodic inventory system, using the weighted-average inventory method, the company's ending inventory would be: A. $2,000. B. $2,200. C. $2,250. D. $2,400. E. $4,400. 110.A company sells a climbing kit and uses the periodic inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during January were as follows: If the ending inventory is reported at $357, what inventory method was used? A. LIFO. B. FIFO. C. Weighted average. D. Specific identification. E. Retail inventory method. 111.A company's warehouse was destroyed by a tornado on March 15. The following information was the only information that was salvaged: The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory? A. $9,705. B. $25,995. C. $29,250. D. $44,000. E. $45,000. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 112.A company reported the following information regarding its inventory. Beginning inventory: cost is $70,000; retail is $130,000 Net purchases: cost is $65,000; retail is $120,000 Sales at retail: $145,000 The year-end inventory showed $105,000 worth of merchandise available at retail prices. What is the cost of the ending inventory? A. $48,300. B. $56,700. C. $56,441. D. $78,300. E. $105,000. 113.On September 30 a company needed to estimate its ending inventory to prepare its third quarter financial statements. The following information is available: Beginning inventory, July 1: $4,000 Net sales: $40,000 Net purchases: $41,000 The company's gross margin ratio is 15%. Using the gross profit method, the cost of goods sold would be: A. $4,000. B. $5,000. C. $21,000. D. $25,000. E. $34,000. 114.A company that has operated with a 30% average gross profit ratio for a number of years had $100,000 in sales during the first quarter of this year. If it began the quarter with $18,000 of inventory at cost and purchased $72,000 of inventory during the quarter, its estimated ending inventory by the gross profit method is: A. $30,000. B. $21,000. C. $20,000. D. $18,000. E. $27,000. 115.On December 31, a company needed to estimate its ending inventory to prepare its fourth quarter financial statements. The following information is currently available: Inventory as of October 1: $12,500 Net sales for fourth quarter: $40,000 Net purchases for fourth quarter: $27,500 This company typically achieves a gross profit ratio of 15%. Ending Inventory under the gross profit method would be: A. $4,000. B. $6,000. C. $10,000. D. $16,000. E. $34,000. 116.Interim statements: A. Are required by the Congress. B. Are necessary to achieve full disclosure about a business's operations. C. Are usually monthly or quarterly statements prepared for periods of less than one year. D. Require the use of the perpetual method for inventories. E. Cannot be prepared if the company follows the conservatism principle. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 117.Jackson Company has sales of $300,000 and cost of goods available for sale of $270,000. If the gross profit ratio is typically 30%, the estimated cost of the ending inventory under the gross profit method would be: A. $60,000 B. $180,000 C. $30,000 D. $90,000 E. Impossible to determine from the information provided. 118.Georgia Peach Company reported net sales in June of the current year of $1,000,000. At the beginning of June, the company reported beginning inventory of $368,000. Cost of goods purchased during June amounted to $217,500. The company reported ending inventory at the end of June of $226,750. The company's gross profit rate for June of the current year was: A. 35.9% B. 18.8% C. 81.2% D. 64.1% E. Impossible to determine from the information provided. 119.On July 24 of the current year, The Georgia Peach Company experienced a natural disaster that destroyed the company's entire inventory. At the beginning of July, the company reported beginning inventory of $226,750. Inventory purchased during July (until the date of the disaster) was $197,800. Sales for the month of July through July 24 were $642,500. Assuming the company's typical gross profit ratio is 50%, estimate the amount of inventory destroyed in the natural disaster. A. $212,275 B. $103,300 C. $217,950 D. $321,250 E. $157,788 120.Flaxco purchases inventory from overseas and incurs the following costs: the cost of the merchandise is $50,000, credit terms are 2/10, n/30 that apply only to the $50,000; FOB shipping point freight charges are $1,500; insurance during transit is $500; and import duties are $1,000. Flaxco paid within the discount period and incurred additional costs of $1,200 for advertising and $5,000 for sales commissions. Compute the cost that should be assigned to the inventory. A. $50,000 B. $53,000 C. $52,000 D. $51,500 E. $53,200 121.Some companies choose to avoid assigning incidental costs of acquiring merchandise to inventory by recording them as expenses when incurred. The argument that supports this is called: A. The matching principle. B. The materiality constraint. C. The cost principle. D. The conservation constraint principle. E. The lower of cost or market principle. 122.All of the following statements related to goods on consignment are true except: A. Goods on consignment are goods provided by the owner, call the consignor. B. A consignee sells goods for the owner. C. The consignor continues to own the consigned goods. D. The consignee reports the goods in its inventory until sold. E. The consignor reports the goods in its inventory until sold. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 123.When purchase costs of inventory regularly decline, which method of inventory costing will yield the lowest gross profit and income? A. FIFO. B. LIFO. C. Weighted average. D. Specific identification. E. Gross margin. 124.When purchase costs of inventory regularly decline, which method of inventory costing will yield the lowest cost of goods sold? A. FIFO. B. LIFO. C. Weighted average. D. Specific identification. E. Gross margin. 125.IFRS reporting currently does not allow which method of inventory costing? A. Specific identification. B. FIFO. C. LIFO. D. Weighted average. E. Lower of cost or market. 126.All of the following statements regarding U.S. GAAP and IFRS are true except? A. Both U.S. GAAP and IFRS include broad and similar guidance for the items and costs making up merchandise inventory. B. For both U.S. GAAP and IFRS, merchandise inventory includes all items that a company owns and holds for sale. C. Both U.S. GAAP and IFRS require companies to write down inventory when its value falls below the cost presently recorded. D. Both U.S. GAAP and IFRS allow reversals of write downs up to the original acquisition cost. E. With limited exceptions, neither U.S. GAAP nor IFRS allow inventory to be adjusted upward beyond the original cost. 127.Pettis needs to determine its year-end inventory. The warehouse contains 20,000 units, of which 3,000 were damaged by flood and cannot be sold. Another 2,000 units, shipped FOB shipping point, are in transit. The company also consigns goods and has 4,000 units at a consignee's location. How many units should Pettis include in its year-end inventory? A. 29,000 B. 21,000 C. 23,000 D. 19,000 E. 26,000 128.Perch Company reported the following purchases and sales for its only product. Perch uses a perpetual inventory system. Determine the cost assigned to the ending inventory using FIFO. A. $2,260 B. $3,180 C. $1,860 D. $3,580 E. $2,100 To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 129.Perch Company reported the following purchases and sales for its only product. Perch uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO. A. $2,260 B. $3,180 C. $1,860 D. $3,580 E. $2,100 130.Perch Company reported the following purchases and sales for its only product. Perch uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO. A. $2,260 B. $3,180 C. $1,860 D. $3,580 E. $2,100 131.Perch Company reported the following purchases and sales for its only product. Perch uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO. A. $2,260 B. $3,180 C. $1,860 D. $3,580 E. $2,100 132.On May 1 of the current year, Peck Company experienced a 500 year flood which destroyed the company's entire inventory. The company had not completed its month end reporting for April and must estimate the amount of inventory lost. At the beginning of April, the company reported beginning inventory of $215,450. Inventory purchased during April (until the date of the disaster) was $192,530. Sales for the month of April were $542,500. Assuming the company's typical gross profit ratio is 40%, estimate the amount of inventory destroyed in the flood. A. $87,480 B. $134,520 C. $109,980 D. $82,480 E. $81,480 To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 133.Use the following information for Razor Company to compute inventory turnover for 2011. A. 8.33 B. 5.00 C. 4.95 D. 4.54 E. 7.33 134.Use the following information for Razor Company to compute days' sales in inventory for 2011. A. 73.0 B. 80.3 C. 43.8 D. 70.0 E. 49.8 To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 135.Match each of the following terms a through j with the appropriate definition. 1. Inventory The accounting constraint that aims to select the less turnover optimistic estimate when two or more estimates are about_ equally likely. _ _ _ 2. FIFO The expected sales price of an minus item the cost of making method the sale. _ _ _ _ 3. Retail A method for estimating an ending inventory based on the inventory ratio of the amount of goods for sale at cost to the amount of_ method goods for sale at retail price. _ _ _ 4. Interim An estimate of days needed to convert the inventory at the statements end of the period into receivables or cash. _ _ _ _ 5. Specific An inventory pricing method that assumes the unit prices of identificatio the beginning inventory and of each purchase are weighted by_ n method the number of units of each in inventory; the calculation occurs_ at the time of each sale. _ _ 6. Cons Financial statements prepared for periods of less than one ervatism year. _ constraint _ _ _ 7. Days' An inventory valuation method that assumes costs for the sales in most recent items purchased are sold first and charged to cost of_ inventory goods sold. _ _ _ 8. LIFO An inventory valuation method where the purchase cost of method each item in ending inventory is identified and used to determine_ the cost assigned to inventory. _ _ _ 9. Net An inventory valuation method that assumes that inventory realizable items are sold in the order acquired. _ value _ _ _ 10. Weight The number of times a company's average inventory is sold ed average during a period. _ inventory _ method _ _ To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 136.Match the following terms a through j with the appropriate definition. 1. Lower An owner of goods who ships them to another party who will of cost or then sell the goods for the owner. _ market _ _ _ 2. Consig A procedure for estimating inventory where the past gross nor profit rate is used to estimate the cost of goods sold, which is then_ subtracted from the cost of goods available for sale to determine_ the estimated ending inventory. _ _ 3. Days' The accounting principle that a company use the same sales in accounting methods period after period so that the financial_ inventory statements of succeeding periods will be comparable. _ _ _ 4. Cons An estimate of days needed to convert the inventory available at ervatism the end of the period into receivables or cash. _ principle _ _ _ 5. Inv One who receives and holds goods owned by another for entory purposes of selling the goods for the owner. _ turnover _ _ _ 6. Sp The method of assigning costs to inventory where the purchase ecific cost of each item in inventory is identified and used to determine_ identif the cost of inventory. _ ication _ method _ 7. Consig The number of times a company's average inventory is sold nee during an accounting period. _ _ _ _ 8. Cons The required method of reporting inventory at market when istency market is lower than cost. _ principle _ _ _ 9. Gross A method for estimating inventory based on the ratio of the profit amount of goods for sale at cost to the amount of goods for sale at_ method retail prices. _ _ _ 10. Retail The principle that aims to select the less optimistic estimate inventory when two or more estimates are about equally likely. _ method _ _ _ To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 137.Identify the inventory valuation method that is being described for each situation below. In all cases, assume a period of rising prices. Use the following to identify the inventory valuation method: a. The method that can only be used if each inventory item can be matched with a specific purchase and its invoice. b. The method that will cause the company to have the lowest income taxes. c. The method that will cause the company to have the lowest cost of goods sold. d. The method that will assign a value to inventory that approximates its current cost. e. The method that will tend to smooth out erratic changes in costs. 138.Identify the items that are included in merchandise inventory. (In your answer address the special situations of goods in transit, consigned goods, and damaged goods.) 139.What costs are assigned to merchandise inventory? Identify all costs including the incidental costs. 140.Describe the internal controls that must be applied when taking a physical count of inventory. 141.Explain the effects of inventory valuation methods on the cost of ending inventory, income, and income taxes. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 142.How do the consistency concept and the full disclosure principle affect inventory valuation? 143.What is the effect of an error in the ending inventory balance on the income statement? 144.Explain how the inventory turnover ratio and the days' sales in inventory ratio are used to evaluate inventory management. 145.Identify and describe the four inventory valuation methods. 146.Explain why the lower of cost or market rule is used to value inventory. 147.Discuss the important accounting features of a periodic inventory system including accounts and procedures used. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 148.Explain the difference between the retail inventory method and gross profit inventory method for valuing inventory. 149.Sarbanes Oxley (SOX) demands that companies safeguard inventory and properly report it. List methods that companies should use to safeguard inventory and accounting procedures that should be used to properly report inventory. 150.The inventory manager's compensation includes a bonus plan based on gross profit. You discover that the inventory manager has knowingly overstated ending inventory by $2 million. What effect does this error have on the financial statements of the company and specifically gross profit? Why would the manager knowingly overstate ending inventory? Would this be considered an ethics violation? 151.Fast Auto Parts is an auto parts wholesaler that stocks several major brand names for Complete Auto Parts stores across the country. Complete Auto Parts does not assume responsibility for parts until they are sold to the customer. Identify the consignor and the consignee. Which company should include any unsold goods as part of its inventory? 152.Advances in technology have greatly reduced the cost of a perpetual inventory system. What advantages does a perpetual inventory system have over periodic? To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 153.For Randy Hetrick of Fitness Anywhere, the major challenge was maintaining appropriate levels of inventories while controlling costs. What is meant by this statement? 154.Monitor Company uses the LIFO method for valuing its ending inventory. The following financial statement information is available for its first year of operation: Monitor's ending inventory using the LIFO method was $8,200. Monitor's accountant determined that had the company used FIFO, the ending inventory would have been $8,500. a. Determine what the income before taxes would have been, had Monitor used the FIFO method of inventory valuation instead of LIFO. b. What would be the difference in income taxes between LIFO and FIFO, assuming a 30% tax rate? c. If Monitor wanted to lower the amount of income taxes to be paid, which method would it choose? 155.Evaluate each inventory error separately and determine whether it overstates or understates cost of goods sold and net income. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 156.The City Store reported the following amounts on their financial statements for Year 1, Year 2, and Year 3: It was discovered early in Year 4 that the ending inventory on December 31, Year 1 was overstated by $6,000, and the ending inventory on December 31, Year 2 was understated by $2,500. The ending inventory on December 31, Year 3 was correct. Ignoring income taxes determine the correct amounts of cost of goods sold, net income, total current assets, and equity for each of the years Year 1, Year 2, and Year 3. 157. A company reported the following data: Required: 1. Calculate the company's merchandise inventory turnover for each year. 2. Comment on the company's efficiency in managing its inventory. 158.A company reported the following data: Required: 1. Calculate the days' sales in inventory for each year. 2. Comment on the trend in inventory management. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 159. A company made the following purchases during the year: On December 31, there were 28 units in ending inventory. These 28 units consisted of 1 from the January 10 purchase, 2 from the March 15 purchase, 5 from the April 25 purchase, 15 from the July 30 purchase, and 5 from the October 10 purchase. Using specific identification, calculate the cost of the ending inventory. 160.A company made the following merchandise purchases and sales during the month of May: There was no beginning inventory. If the company uses the weighted average inventory valuation method and the perpetual inventory system, what would be the cost of its ending inventory? 161.A company made the following merchandise purchases and sales during the month of July: There was no beginning inventory. If the company uses the first-in, first-out method and the perpetual system, what would be the cost of the ending inventory? To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 162.A company made the following merchandise purchases and sales during the current month: There was no beginning inventory. If the company uses the last-in, first-out perpetual inventory system, what would be the cost of the ending inventory? 163.Using the information given below for a company that uses a perpetual inventory system, calculate the ending inventory using FIFO. 164.Using the information given below for a company that uses a perpetual inventory system, calculate the ending inventory using LIFO. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 165.Using the information given below for a company that uses a perpetual inventory system, calculate the ending inventory using weighted average. 166.Using the information given below, prepare general journal entries to record the March 16 sale assuming a cash sale and the FIFO method is used. 167.Using the information given below, prepare the general journal entry to record the March 16 sale assuming a cash sale and the LIFO method is used: 168.Using the information given below, prepare the general journal entry to record the March 16 sale assuming a cash sale and the weighted average method is used. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 169.A company reported the following data related to its ending inventory: Calculate the lower-of-cost-or-market on the: (a) Inventory as a whole and (b) inventory applied separately to each product. 170.A company had the following ending inventory costs: Instructions; 1. Calculate the lower of cost or market (LCM) value for the inventory as a whole. 2. Calculate the lower of cost or market (LCM) value for each individual item. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 171.A company uses the periodic inventory system, and the following information is available. All purchases and sales are on credit. 1. Prepare the general journal entries to record: The October 6 purchase. The October 12 sale. 2. Assuming the periodic inventory system is used, determine both the cost of the ending inventory and the cost of goods sold using the LIFO method for October. 172.A company made the following merchandise purchases and sales during the month of May: There was no beginning inventory. If the company uses the weighted average periodic method, what would be the cost of the ending inventory? To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 173.A company made the following merchandise purchases and sales during the month of May: There was no beginning inventory. If the company uses the LIFO periodic inventory method, what would be the cost of the ending inventory? 174.A company made the following merchandise purchases and sales during the month of May: There was no beginning inventory. If the company uses the FIFO periodic inventory method, what would be the cost of the ending inventory? 175.A company's store was destroyed by a fire on February 10 of the current year. The only information for the current period that could be salvaged included the following: Beginning inventory, January 1: $34,000 Purchases to date: $118,000 Sales to date: $140,000 Historically, the company's gross profit ratio has been 30%. Estimate the value of the destroyed inventory using the gross profit method. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 176.Apply the retail method to the following company information to calculate the cost of the ending inventory for the current period. 177.A company uses the retail inventory method and has the following information available concerning its most recent accounting period: 1. What is the cost-to-retail ratio using the retail method? 2. What is the estimated cost of the ending inventory? 178.Fun Land Toy Stores has taken a physical count of its inventory at January 31, its fiscal year-end. After reviewing the accounting records and documentation, the following items have been discovered: (a) An invoice from Fleck Co. indicates that $30,000 of toys were shipped to Fun Land on January 27, terms FOB shipping point. The toys and invoice did not arrive at Fun Land until February 2 and were not included in the physical count. (b) An invoice from Grande indicates that $8,000 of toys were shipped to Fun Land on January 29, terms FOB destination. The toys and invoice did not arrive at Fun Land until February 2 and were not included in the physical count. The physical count and cost assignment on January 31 prior to these two items is $440,000. The cost of goods sold for Fun Land is $2,100,000. 1. Calculate the amount that should be reported as ending inventory for Fun Land. 2. Calculate the days' sales in inventory before and after the appropriate adjustments for inventory. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 179.A company reported the current month purchase and sales data for its only product and uses the perpetual inventory system. Determine the cost assigned to ending inventory and cost of goods sold using FIFO. 180.A company reported the current month purchase and sales data for its only product and uses the perpetual inventory system. Determine the cost assigned to ending inventory and cost of goods sold using LIFO. 181.A company uses the retail inventory method and has the following information available concerning its most recent accounting period: 1. Use the retail inventory method to estimate the company's year-end inventory at cost. 2. A year-end physical count at retail prices yields a total inventory of $404,800. Prepare a calculation showing the company's loss from shrinkage at cost and at retail. 182.If the _______________ is responsible for paying the freight, ownership of merchandise inventory passes when goods are loaded on the transport vehicle. ________________________________________ To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 183.If the _______________ is responsible for paying the freight, ownership of merchandise inventory passes when the goods arrive at their destination. ________________________________________ 184.Goods on consignment are goods that are shipped by the owner, called the ______________, to another party called the _____________________. ________________________________________ 185._______________________ is the estimated sales price of damaged goods minus the cost of making the sale. ________________________________________ 186.Some companies use the _________________ principle or the __________________ constraint to avoid assigning incidental costs of acquiring merchandise to inventory. ________________________________________ 187.The cost of an inventory item includes the ____________, plus ______________ costs necessary to put it in a place and condition for sale. ________________________________________ 188.When purchase costs regularly rise, the ___________________ method of inventory valuation yields the highest gross profit and net income. ________________________________________ 189.When purchase costs regularly rise, the ___________________ method of inventory valuation yields the lowest gross profit and net income, providing a tax advantage. ________________________________________ 190.An advantage of the _________________ method of inventory valuation is that it tends to smooth out the effect of erratic changes in costs. ________________________________________ 191.An overstated beginning inventory will ______________ cost of goods sold and _____________ net income. ________________________________________ 192.The ____________________ ratio reflects how much inventory is available in terms of days' sales. ________________________________________ 193.The _____________________ is a measure of how quickly a merchandiser sells its merchandise inventory. ________________________________________ 194.The ______________________ method of assigning costs to inventory and cost of goods sold exactly matches the costs of items with the revenues they generate and would be used when items can be easily traced to the purchase invoice cost. ________________________________________ 195.The _____________________ method of assigning costs to inventory and cost of goods sold assumes that the inventory items are sold in the order acquired. ________________________________________ 196.The ______________________ method of assigning costs to inventory and cost of goods sold assumes that the most recent purchases are sold first. ________________________________________ 197.The ______________________ method of assigning costs to inventory and cost of goods sold required that we divide the cost of goods available for sale by the units of inventory available at the time of each sale. ________________________________________ To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 198.Regardless of what inventory method or system is used, cost of goods available for sale must be allocated between ___________________ and __________________. ________________________________________ 199.When applying the lower of cost or market method of inventory valuation, market is defined as the _____________________. ________________________________________ 200.The _________________ method is commonly used to estimate the value of inventory that has been destroyed, lost, or stolen. ________________________________________ To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com ch06 Key 1. FALSE 2. FALSE 3. TRUE 4. TRUE 5. FALSE 6. TRUE 7. TRUE 8. TRUE 9. TRUE 10. FALSE 11. FALSE 12. TRUE 13. FALSE 14. FALSE 15. TRUE 16. FALSE 17. FALSE 18. TRUE 19. TRUE 20. TRUE 21. FALSE 22. TRUE 23. FALSE 24. TRUE 25. FALSE 26. TRUE 27. TRUE 28. FALSE 29. TRUE 30. FALSE 31. TRUE 32. TRUE 33. TRUE 34. TRUE 35. TRUE 36. TRUE To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 37. FALSE 38. FALSE 39. TRUE 40. TRUE 41. FALSE 42. TRUE 43. FALSE 44. TRUE 45. TRUE 46. FALSE 47. TRUE 48. FALSE 49. TRUE 50. FALSE 51. FALSE 52. FALSE 53. FALSE 54. TRUE 55. TRUE 56. TRUE 57. FALSE 58. TRUE 59. C 60. A 61. B 62. A 63. D 64. E 65. E 66. E 67. B 68. B 69. E 70. B 71. A 72. A 73. A 74. A To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 75. C 76. C 77. B 78. A 79. B 80. A 81. C 82. A 83. C 84. A 85. A 86. C 87. C 88. E 89. E 90. C 91. D 92. B 93. E 94. C 95. B 96. C 97. B 98. A 99. C 100. C 101. B 102. C 103. A 104. B 105. C 106. B 107. C 108. A 109. B 110. B 111. A 112. B To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 113. E 114. C 115. B 116. C 117. A 118. D 119. B 120. C 121. C 122. D 123. A 124. B 125. C 126. D 127. B 128. A 129. B 130. C 131. D 132. D 133. C 134. A 135. Conservatism constraint :: The accounting constraint that aims to select the less optimistic estimate when two or more estimates are about equally likely. and Net realizable value :: The expected sales price of an item minus the cost of making the sale. and Retail inventory method :: A method for estimating an ending inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail price. and Days' sales in inventory :: An estimate of days needed to convert the inventory at the end of the period into receivables or cash. and Weighted average inventory method :: An inventory pricing method that assumes the unit prices of the beginning inventory and of each purchase are weighted by the number of units of each in inventory; the calculation occurs at the time of each sale. and Interim statements :: Financial statements prepared for periods of less than one year. and LIFO method :: An inventory valuation method that assumes costs for the most recent items purchased are sold first and charged to cost of goods sold. and Specific identification method :: An inventory valuation method where the purchase cost of each item in ending inventory is identified and used to determine the cost assigned to inventory. and FIFO method :: An inventory valuation method that assumes that inventory items are sold in the order acquired. and Inventory turnover :: The number of times a company's average inventory is sold during a period. 136. Consignor :: An owner of goods who ships them to another party who will then sell the goods for the owner. and Gross profit method :: A procedure for estimating inventory where the past gross profit rate is used to estimate the cost of goods sold, which is then subtracted from the cost of goods available for sale to determine the estimated ending inventory. and Consistency principle :: The accounting principle that a company use the same accounting methods period after period so that the financial statements of succeeding periods will be comparable. and Days' sales in inventory :: An estimate of days needed to convert the inventory available at the end of the period into receivables or cash. and Consignee :: One who receives and holds goods owned by another for purposes of selling the goods for the owner. and Specific identification method :: The method of assigning costs to inventory where the purchase cost of each item in inventory is identified and used to determine the cost of inventory. and Inventory turnover :: The number of times a company's average inventory is sold during an accounting period. and Lower of cost or market :: The required method of reporting inventory at market when market is lower than cost. and Retail inventory method :: A method for estimating inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail prices. and Conservatism principle :: The principle that aims to select the less optimistic estimate when two or more estimates are about equally likely. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com e. WA d. FIFO c. FIFO b. LIFO 137. a. SI 138. Merchandise inventory consists of goods owned by a company and held for resale. Three special cases involving ownership decisions are goods in transit, consigned goods, and damaged goods. Goods in transit are included in the inventory of the company that owns the goods. Consigned goods are included in the inventory of the consignor. Damaged goods are valued at net realizable value. 139. The costs of merchandise inventory include the invoice price minus any discounts, plus any added or incidental costs necessary to put the inventory in a place and condition for sale. Incidental costs include import duties, freight costs, storage, insurance, and costs of aging. 140. The internal controls should include (1) prenumbered tickets that are all accounted for; (2) counters who are not responsible for the inventory; (3) counters who must confirm the validity of inventory's existence, amounts, and quality; (4) a second count by a different counter; and (5) confirmation that all inventories are ticketed once and only once by a manager. 141. The specific identification method exactly identifies the costs of the inventory items sold. The weighted average method smooths out changes in costs by "averaging" inventory costs. However, LIFO and FIFO provide different amounts in periods of rising or falling costs. For example, in periods of rising costs, LIFO provides a lower income and thus lower taxes. In periods of falling costs, LIFO provides a higher income and thus higher taxes. FIFO calculations provide both higher income and taxes in periods of rising costs and lower income and taxes in periods of declining costs. If a company does change its inventory valuation method, the full disclosure principle requires that the notes to the financial statements report the type of change, its justification, and its effect on net income. 142. The consistency concept requires that companies use the same accounting method for inventory valuation from period to period so that the financial statements are comparable across periods. The only exception is when a change from one method to another will improve its financial reporting. The consistency principle does not require a company to use one inventory valuation method for all categories of inventory. 143. An inventory error causes misstatements in cost of good sold, gross profit, net income, current assets, and equity. It also causes misstatements in the next period's cost of goods sold and net income. However, the inventory error is said to be self-correcting because the error in the first period is offset by the error in the second period. The days' sales in inventory ratio helps to better interpret inventory turnover. It can be interpreted as the number of days one can sell from inventory if no new items are purchased, and can be viewed as a measure of the buffer against out-of-stock inventory. 144. A merchandiser's ability to pay its short term obligations depends, among other factors, on how quickly it sells its merchandise inventory. The inventory turnover ratio reveals how many times a company turns over (sells) its inventory during a period. A low ratio compared to competitors suggests the company may be holding more inventory than necessary to support its sales volume. On the other hand, a ratio that is too high compared to competitors may suggest that the inventory level is too low and customers may have to back order merchandise. 145. The specific identification method assigns costs to each inventory item based on specific invoice costs. The weighted average method assigns costs by using the total balance in inventory and dividing it by the number of units to arrive at a cost per unit at each sale. This cost per unit is then multiplied by the number of units in ending inventory. The first-in-first-out method assigns cost to items sold assuming that the first units purchased are the first to be sold. The last-in-first out method assumes that the last units purchased are the first to be sold. 146. Answer: The concept of conservatism requires that if there is more than one estimate of the value of an asset, then the lower of the two should be used. The lower of cost or market rule compares the acquisition cost of inventory with the current replacement cost. The lower of these two values is then selected as the amount to be reported. 147. Each purchase of merchandise is debited to the Purchases account. Cost of goods sold is not recorded at the time of sale. Instead, a physical count of inventory at the end of the accounting period is used to determine the amount of inventory sold. Certain costs of inventory such as transportation-in, purchases discounts, and purchases returns and allowances are recorded in separate accounts. These separate accounts are then used to help compute inventory at the end of the period. 148. The retail method is generally used to prepare interim statements. It uses the cost to retail ratio to give an estimated ending inventory at cost. The gross profit method is typically used to reconstruct the value of lost, stolen, or destroyed inventory. It uses the (historical) gross profit ratio to estimate cost of goods sold and the value of ending inventory. 149. Safeguards include restricted access, use of authorized requisitions, security measures, and controlled environments to prevent damage. Proper accounting includes matching inventory received with purchase order terms and quality requirements, preventing misstatements, and controlling access to inventory records. 150. By overstating ending inventory, the cost of goods sold is understated, causing the gross profit to be overstated and net income to be overstated. By overstating the gross profit, this would increase the manager's bonus. The assets and equity would also be overstated. Since the manager's bonus is based on gross profit, the error would result in a larger bonus since gross profit would be overstated. Yes, this would be considered an ethics violation since the manager intentionally overstated ending inventory and the financial statements would contain errors that could affect decisions made by the users of the financial statements. To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 151. Fast Auto Parts is the consignor; Complete Auto Parts is the consignee. Fast Auto Parts should include any unsold goods as part of its inventory. 152. The perpetual inventory system updates the inventory balance as transactions affecting inventory occur, the balance is increased for purchases and decreased for sales. The subsidiary ledger also enables companies to get detailed records for each inventory item without a lot of extra effort. Knowing the exact amount of inventory may avoid the risk of lost sales and also help management reduce the level of inventory, thereby increasing the inventory turnover and decreasing the required number of days' sales in inventory. The reduced level of inventory also reduces costs. Many companies are now asking whether they can afford not to have a perpetual inventory system because timely access to inventory information is a competitive advantage. 153. Any entrepreneur who sells inventory must constantly balance the need to have adequate inventory available to meet customers' demands while also minimizing the amount of investment in inventory. Maintaining too little inventory can result in stock-outs (lost sales due to a lack of available inventory) but maintaining too much inventory wastes the company's resources (by requiring funds be invested in inventory and not in other more productive assets). Randy knew that to meet his customers' needs, he would need sound inventory accounting. By implementing inventory management tools, he learned how to fill orders, collect money, and maintain the right inventory. c. Monitor would choose the LIFO method because it results in lower income taxes. Income taxes would be $90 higher using FIFO than LIFO. b. Feedback: a. If ending inventory is $300 higher using FIFO ($8,500 - $8,200), then the cost of goods sold would be $300 lower, gross profit $300 higher, and income before taxes would be $300 higher. Therefore, income before taxes would be $14,000 + $300 = $14,300. 154. Answers will vary Feedback: 155. Answers will vary Feedback: 156. Answers will vary To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 2. The company's efficiency in managing its inventory is increasing as its sales increase. This is a positive reflection on inventory management. 1. Feedback: 157. Answers will vary 2. The company has a trend of decreasing the number of days it takes to sell its inventory. This is a positive reflection on inventory management provided there is sufficient inventory available to meet the sales demand. 1. Feedback: 158. Answers will vary Feedback: 159. Answers will vary Feedback: 160. Answers will vary To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com Feedback: 161. Answers will vary Feedback: 162. Answers will vary To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com Feedback: 163. Answers will vary Feedback: 164. Answers will vary **$1,756/150 units = $11.71/unit *$1,480/140 units = $10.57/unit Feedback: 165. Answers will vary To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com Feedback: 166. Answers will vary Feedback: 167. Answers will vary Feedback: 168. Answers will vary b. LCM, applied separately to each product = $3,470 a. LCM, applied to inventory as a whole = $3,680 Feedback: 169. Answers will vary To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com Feedback: 170. Answers will vary 2. Ending Inventory: 1. Journal entries: Feedback: 171. Answers will vary Cost of ending inventory = 150 units x $17.78 each = $2,667 Average cost = $16,890/950 units = $17.78 per unit Feedback: 172. Answers will vary To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com Cost of ending inventory = 150 x $15 each = $2,250 Feedback: 173. Answers will vary Cost of ending inventory = 150 x $22 each = $3,300 Feedback: 174. Answers will vary Feedback: 175. Answers will vary Feedback: 176. Answers will vary To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com Feedback: 177. Answers will vary After adjustment: 470,000/2,100,000 * 365 = 81.7 days 2. Before adjustment: 440,000/2,100,000 * 365 = 76.5 days 1. The ending inventory should be adjusted to $470,000. Only the $30,000 invoice needs to be added since it was shipped FOB shipping point, the owner (Fun Land) should include the inventory in the ending balance. ($440,000 + $30,000 = $470,000) Feedback: 178. Answers will vary Feedback: 179. Answers will vary To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com Feedback: 180. Answers will vary $20,800 x .55 = $11,440 inventory shrinkage at cost 2. $425,600 - $404,800 = $20,800 inventory shrinkage at retail $425,600 x .55 = $234,080 $1,325,800 - $900,200 = $425,600 1. $729,190/1,325,800 = .55 Feedback: 181. Answers will vary 182. Purchaser, or buyer 183. Seller 184. Consignor; consignee 185. Net realizable value 186. Matching; cost-to-benefit (or materiality) 187. Invoice price minus any discount; any added or incidental 188. First in, first out (FIFO) 189. Last in, first out (LIFO) 190. Weighted average 191. Overstate; understate 192. Days' sales in inventory 193. Inventory turnover 194. Specific identification 195. First in, first out (FIFO) 196. Last in, first out (LIFO) 197. Weighted average (or average cost) To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com 198. Cost of goods sold; ending inventory 199. Replacement cost 200. Gross profit To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http://downloadslide.blogspot.com ch06 Summary Category # of Questions AACSB: Analytic 116 AACSB: Communications 81 AACSB: Ethics 1 AACSB: Technology 2 AICPA BB: Critical Thinking 3 AICPA BB: Global 2 AICPA BB: Industry 194 AICPA BB: Industry, Legal 1 AICPA FN: Decision Making 11 AICPA FN: Decision Making, Measurement 1 AICPA FN: Leveraging Technology 2 AICPA FN: Measurement 160 AICPA FN: Measurement, Risk Analysis 1 AICPA FN: Reporting 4 AICPA FN: Risk Analysis 21 Blooms: Analyze 4 Blooms: Apply 70 Blooms: Remember 55 Blooms: Understand 72 Difficulty: Easy 55 Difficulty: Hard 72 Difficulty: Medium 73 Fundamental - Chapter 06 200 Learning Objective: A1 Analyze the effects of inventory methods for both financial and tax reporting. 31 Learning Objective: A2 Analyze the effects of inventory errors on current and future financial statements. 19 Learning Objective: A3 Assess inventory management using both inventory turnover and days sales in inventory. 22 Learning Objective: C1 Identify the items making up merchandise inventory. 23 Learning Objective: C2 Identify the costs of merchandise inventory. 16 Learning Objective: P1 Compute inventory in a perpetual system using the methods of specific identification; FIFO; LIFO; and we 45 ighted average. Learning Objective: P2 Compute the lower of cost or market amount of inventory. 18 Learning Objective: P3 Appendix 6A-- 13 Compute inventory in a periodic system using the methods of specific identification; FIFO; LIFO; and weighted average. Learning Objective: P4 Appendix 6B--Apply both the retail inventory and gross profit methods to estimate inventory. 24

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Maryland - CHEM - 271
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MapĂșa Institute of Technology - STRATEGIC - EMG166
egic Planning & Management27Management IssuesEMG166-Strategic Planning & Management28Management IssuesManaging Conflict4 Types of Resources1. Financial resources-- Disagreement between two moreparties on one or more issues2. Physic
Kaplan University - MT - 499
ge of about $25 deposit and anywhere from $.03 to $.05 per click. Thisexposure would be great for the business though. This type of ad puts our website atthe top of the search engine listings.Our next strategy at this point is to gain brand recogn
Harvard - ACCTG - 507
To download more ebooks, slides, SM and TB visit: http:/downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http:/downloadslide.blogspot.comch05Student: _1. 2. 3. 4. 5.Merchandise inventory consists of products that a company
Harvard - ACCTG - 507
To download more ebooks, slides, SM and TB visit: http:/downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http:/downloadslide.blogspot.comch04Student: _1. 2. 3. 4.Accounts that appear in the balance sheet are often called te
Harvard - ACCTG - 507
To download more ebooks, slides, SM and TB visit: http:/downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http:/downloadslide.blogspot.comch03Student: _1. 2.A company's fiscal year must correspond with the calendar year. Tru
Harvard - ACCTG - 507
To download more ebooks, slides, SM and TB visit: http:/downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http:/downloadslide.blogspot.comch02Student: _1. 2. 3. 4. 5.The first step in the processing of a transaction is to an
Harvard - ACCTG - 507
To download more ebooks, slides, SM and TB visit: http:/downloadslide.blogspot.com To download more ebooks, slides, SM and TB visit: http:/downloadslide.blogspot.comch01Student: _1.Accounting is an information and measurement system that identifies, r
Harvard - ACCTG - 507
ContentsChapter 12Debt Financing.1Chapter 13Equity Financing.39Chapter 14Investments in Debt and Equity Securities.78Chapter 15Leases.115Chapter 16Income Taxes.148Chapter 17Employee CompensationPayroll, Pensions,and Other Compensation Is
Harvard - ACCTG - 507
TO THE INSTRUCTORThis Test Bank is intended to accompany Intermediate Accounting, 16th Edition, by James D.Stice, Earl K. Stice, and K. Fred Skousen. The Test Bank includes examination questions andproblems appropriate for instructors to use in testing
Harvard - ACCTG - 507
Chapter 12Debt FinancingMULTIPLE CHOICE1. For a liability to exist,a. a past transaction or event must have occurred.b. the exact amount must be known.c. the identity of the party owed must be known.d. an obligation to pay cash in the future must ex
Harvard - ACCTG - 507
210CHAPTER16Problem1611.C2.D3.D4.D5.BProblem162Land BuildingCashpaidforlandandoldbuilding1,000,000Removalofoldbuilding50,000Paymenttotenantsofoldbuildingtovacatepremises 15,000Architectfee200,000Buildingpermit30,000Feefortitlesearch10,
Harvard - ACCTG - 507
139CHAPTER11Problem111Problem1121.A2.C3.C4.A5.D1.B2.D3.B4.A5.C6.A7.C8.A9.D10.BProblem1131.D2.D3.C4.A5.CProblem114 1.B2.C3.D 4.A5.AProblem115Equitymethod1.InvestmentinassociateCashAcquisitioncostNetassetsacquired(20%x8,0
Harvard - ACCTG - 507
72CHAPTER6Problem611.C2.C3.C4.A5.C6.B7.C8.B9.A10.CProblem62Problem631.C 6.A2.D 7.B3.C8.B4.C 9.B5.B 10.DMarch1CashNotepayablebankApril1Cash SalesdiscountAccountsreceivableJune1CashAccountsreceivableSept.1Notepayablebank Interest
Harvard - ACCTG - 507
SOLUTIONMANUALFinancialAccountingValixandPeraltaVolumeOne2008Edition1CHAPTER1Problem111.D2.C3.D4.D5.C6.C7.B8.C9.D10.AProblem12Problem13Problem141.A2.A3.D4.B5.D6.B7.D8.C9.C1.C2.D3.D4.A5.D1.A2.C3.A4.A5.D 6.A7.D8.B9.
Harvard - ACCTG - 507
SOLUTIONMANUALFinancialAccountingValixandPeraltaVolumeOne2008Edition1CHAPTER1Problem11Problem12Problem13Problem141.A2.A3.D4.B5.D6.B7.D8.C9.C10.D1.C2.D3.D4.A5.D1.A2.C3.A4.A5.D 6.A7.D8.B9.D10.DProblem15Problem16Problem17
Harvard - ACCTG - 507
CHAPTER17DepreciationTableServiceHoursMethodProblem171Problem1721.A2.D3.B4.D5.D6.D7.D8.C9.C10.B1.C2.A3.D4.D5.D6.B7.C8.B9.A 10. AAccumulatedYearParticular Depreciationdepreciation BookvalueAcquisitioncost635,000200814,000x10
Harvard - ACCTG - 507
This file is from study4smart.blogspot.com. This is not intended for re-distribution and solely for review purposes. It is not intended to infringe copyright by the owner, we strongly recommend to buy original ones. Thank you. Request more? Just contact u
Harvard - ACCTG - 507
This file is from study4smart.blogspot.com. This is not intended for re-distribution and solely for review purposes. It is not intended to infringe copyright by the owner, we strongly recommend to buy original ones. Thank you. Request more? Just contact u
Harvard - ACCTG - 507
This file is from study4smart.blogspot.com. This is not intended for re-distribution and solely for review purposes. It is not intended to infringe copyright by the owner, we strongly recommend to buy original ones. Thank you. Request more? Just contact u
Harvard - ACCTG - 507
173 CHAPTER10Problem101 Bookvaluepershare(8,800,000/50,000) Problem102 Excess a.Balances 12%x1,000,000x2 12%x4,000,000 Balanceforparticipation Total Dividebysharesoutstanding Bookvaluepershare b.Balances 12%x1,000,000x2 15%x4,000,000 Balanceforparticipat
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71CHAPTER4Problem41 1.C 2.A 3.D 4.D 5.A Problem42 1.Incometaxexpense Incometaxpayable(35%x1,500,000) 2.Incometaxexpense Deferredtaxliability(35%x500,000) 3.Incometaxpayable Cash Currenttaxexpense Deferredtaxexpense Totalincometaxexpense Problem43 1.Inco
Harvard - ACCTG - 507
18CHAPTER2Problem21Problem221.A2.B3.A4.C5.A1.A2.D3.A4.D5.B6.D7.A8.D9.D10.BProblem23Requirement12008April1Oct.1Dec.3131Cash(7,000,000x106%)BondspayablePremiumonbondspayable7,420,000Interestexpense(7,000,000x12%x6/12)Cash420,
Harvard - ACCTG - 507
112CHAPTER10Problem101 1.C 2.B 3.B 4.A 5.A 6.B 7.C 8.C 9.D 10.A Problem102 1.C 2.B 3.C 4.D 5.AProblem103 2007 Netincome Overstatementofinventory: 2007 2008 Understatementofaccruedadvertising: 2007 2008 Understatementofaccruedinterestincome: 2007 2008 O
Harvard - ACCTG - 507
74 CHAPTER8Problem81 1.Salesonaccount Add:Accountsreceivable,January1 Total Less:Accountsreceivable,December31 Collectionsoncreditsales Cashsales Totalsalescashbasis Salesonaccount Cashsales Totalsalesaccrual 2.Purchasesonaccount Add:Accountspayable,Janu
Harvard - ACCTG - 507
53CHAPTER5Problem 5-1 1.C 2.B 3.B 4.C 5.D 6.A 7.C 8.B 9.D 10.D Problem 5-2 1.C 2.C 3.A 4.B 5.A Problem 5-3 1.B 6.A 2.A 7.B 3.A 8.B 4.D 9.B 5.A 10.CProblem 5-4 Answer A Cost Accumulateddepreciation(3,000,000/6x3) BookvalueJanuary1,2008 Depreciationfor20
Harvard - ACCTG - 507
28CHAPTER3Problem31 1.C 2.C 3.A 4.B 5.C Problem32 1.A 2.B 3.B 4.A 5.C Problem33AnswerD CapitalDecember31 Add:Withdrawalsmerchandiseatcost Total Less:CapitalJanuary1 Additionalinvestment(1,000,000+120,000) Netloss 2,500,000 200,000 2,700,000 2,000,00
Harvard - ACCTG - 507
CONTENTSPREFACEMajor Changes in this EditionvRevised Structure of the Test BankviDifficulty LevelviTime Requirements and Financial CalculatorsviDebugging the QuestionsviiComputerized Test BanksviiStudent Preparation for a Test Bank ExamThe
Harvard - ACCTG - 507
This file is distribution copyright by you. Requestfrom study4smart.blogspot.com. This is not intended for reand solely for review purposes. It is not intended to infringe the owner, we strongly recommend to buy original ones. Thank more? Just contact us
Harvard - ACCTG - 507
Exam Code:ADate _DR. DANA PAULISBUSINESS FINANCESPRING 2003, FIRST MIDTERM EXAMEXAM INSTRUCTIONSAll questions are multiple choice.In each question there is only onecorrect answer. Select the answer you believe to be most correct.ANSWERS
Harvard - ACCTG - 507
This Accounting Materials are brought to you by www.everything.freelahat.comCHAPTER 4 VARIABLE COSTING [Problem 1] 1. Direct materials Direct labor Var OH FxOH (P4,000,000/1,000) Unit product costs 2. AC P1,200 1,400 500 4,000 P7,100 VC P1,200 1,400 500
Harvard - ACCTG - 507
This Accounting Materials are brought to you by www.everything.freelahat.comCHAPTER 3 COSTS CONCEPTS and CLASSIFICATION [Problem 1] 1. Direct labor Variable factory overhead Fixed factory overhead Unit conversion cost 2. Direct materials Direct labor Uni
Harvard - ACCTG - 507
This Accounting Materials are brought to you by www.everything.freelahat.comManagement Advisory Services by Franklin T. Agamata, MBA, CPA Suggested Key Answers Multiple Choice Questionnaires 2007 Edition Chapter 1 Multiple Choice Basic Concepts 1. C 2. D
Harvard - ACCTG - 507
CostVolumeProfitAnalysisMODULE 4 COST-VOLUME-PROFIT ANALYSIS THEORIES: 1. To which function of management is CVP analysis most applicable? A. Planning C. Directing B. Organizing D. Controlling Bobadilla 2. The systematic examination of the relationships
Harvard - ACCTG - 507
ActivityCostandAnalysisMODULE 3 ACTIVITY COST AND COST ANALYSIS THEORIES: 1. Cost behavior analysis is a study of how a firm's costs A. relate to competitors' costs. B. relate to general price level changes. C. respond to changes in activity levels withi
Harvard - ACCTG - 507
MANAGEMENT ACCOUNTING (VOLUME II) - Solutions ManualCHAPTER 17 APPLICATION OF QUANTITATIVE TECHNIQUES IN PLANNING, CONTROL AND DECISION MAKING II. Questions 1. a. Decision tree analysis provides a systematic framework for analyzing a sequence of interre
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MANAGEMENT ACCOUNTING (VOLUME I) - Solutions ManualCHAPTER 16 STANDARD COSTS AND OPERATING PERFORMANCE MEASURESI. Questions 1. Standard costs are superior to past data for comparison with actual costs because they ask the question "Is present performanc
Harvard - ACCTG - 507
MANAGEMENT ACCOUNTING (VOLUME I) - Solutions ManualCHAPTER 15 FUNCTIONAL AND ACTIVITYBASED BUDGETING I. Questions 1. No. Planning and control are different, although related, concepts. Planning involves developing objectives and formulating steps to ach
Harvard - ACCTG - 507
MANAGEMENT ACCOUNTING (VOLUME I) - Solutions ManualCHAPTER 13 COSTVOLUMEPROFIT RELATIONSHIPSI. Questions 1. The total "contribution margin" is the excess of total revenue over total variable costs. The unit contribution margin is the excess of the unit
Harvard - ACCTG - 507
MANAGEMENT ACCOUNTING (VOLUME I) - Solutions ManualCHAPTER 12 VARIABLE COSTINGI. Questions 1. The variable costing technique does not consider fixed costs as unimportant or irrelevant, but it maintains that the distinction between behaviors of different
Harvard - ACCTG - 507
MANAGEMENT ACCOUNTING (VOLUME I) - Solutions ManualCHAPTER 10 SYSTEMS DESIGN: JOBORDER COSTING AND PROCESS COSTINGI. Questions 1. Job-order costing is used in those manufacturing situations where there are many different products produced each period. E
Harvard - ACCTG - 507
MANAGEMENT ACCOUNTING (VOLUME I) - Solutions ManualCHAPTER 9 COST BEHAVIOR: ANALYSIS AND USEI. Questions 1. a. Variable cost: A variable cost is one that remains constant on a per unit basis, but which changes in total in direct relationship to changes
Harvard - ACCTG - 507
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Harvard - ACCTG - 507
MANAGEMENT ACCOUNTING (VOLUME I) - Solutions ManualCHAPTER 7 GROSS PROFIT VARIATION ANALYSIS AND EARNINGS PER SHARE DETERMINATIONI. Problems Problem I The Dawn Mining Company Gross Profit Variation Analysis For 2006 Increase in Sales: Quantity Factor [(
Harvard - ACCTG - 507
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Harvard - ACCTG - 507
MANAGEMENT ACCOUNTING (VOLUME I) - Solutions ManualCHAPTER 5 FINANCIAL STATEMENTS ANALYSIS III. Questions1.By looking at trends, an analyst hopes to get some idea of whether a situation is improving, remaining the same, or deteriorating. Such analyses
Harvard - ACCTG - 507
MANAGEMENT ACCOUNTING (VOLUME I) - Solutions ManualCHAPTER 4 FINANCIAL STATEMENTS ANALYSIS II. Questions 1. The objective of financial statements analysis is to determine the extent of a firm's success in attaining its financial goals, namely: a. To ear
Harvard - ACCTG - 507
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Harvard - ACCTG - 507
MANAGEMENT ACCOUNTING (VOLUME I) - Solutions ManualCHAPTER 2 MANAGEMENT ACCOUNTING AND THE BUSINESS ENVIRONMENTI. Questions 1. Managerial accounting information often brings to the attention of managers important issues that need their managerial experi
Harvard - LAW - 505
Sec. 2. What constitutes certainty as to sum. - The sum payable is a sum certain within the meaning of this Act, although it is to be paid: (a) with interest; or (b) by stated installments; or (c) by stated installments, with a provision that, upon defaul
Harvard - LAW - 505
What is a Negotiable Instrument? A written contract for the payment of money which complies with the requirements of Sec. 1 of the NIL, which by its form and on its face, is intended as a substitute for money and passes from hand to hand as money, so as t
Harvard - ACCTG - 507
MANAGEMENT ACCOUNTING (VOLUME II) - Solutions ManualCHAPTER 18 APPLICATION OF QUANTITATIVE TECHNIQUES IN PLANNING, CONTROL AND DECISION MAKING III. Questions 1. PERT is superior to Gantt Charts in complex projects because: a. PERT charts are flexible an
Cornell - CHEME - 6640
AJHunterEnergy EconomicsChemE6640Task 4 Energy and Information as factors of production In recent lectures I have talked about production functions. They connect input variables called "factors of production" with the output that they create. Tradition
Cornell - CHEME - 6640
AJHunterEnergy EconomicsChemE6640Task 3 Refinery LP Production functions take various forms. One is the Linear Program (LP) where a set of linear equations define the system under study. The coefficients of the equations can vary but are limited by con
Cornell - CHEME - 6640
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Cornell - CHEME - 6640
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Cornell - CHEME - 6640
Task 1This task asks you to model a coal strip mine and its transportation to the nearest coal transfer "hub". You will work in teams of 4. There is nothing that you cannot imagine, even if you have never seen a coal mine. So you can collectively setup a
Cornell - CHEME - 6640
Platt's Coal Outlook1/21/13Lecture 7 ChemE 6640 -1Platt's Coal Outlook1/21/13Lecture 7 ChemE 6640 -2Platt's Coal Outlook1/21/13Lecture 7 ChemE 6640 -3Platt's Coal Outlook1/21/13Lecture 7 ChemE 6640 -4World Gas Intelligence1/21/13Lecture
Cornell - CHEME - 6640
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Cornell - CHEME - 6640
Typical Loads Control System1/21/13ChemE 6640 Ref:11/21/13ChemE 6640 Ref:2Overhead Cable1/21/13ChemE 6640 Ref:Cable Material1/21/13ChemE 6640 Ref:1/21/13ChemE 6640 Ref:5Conversion1/21/13ChemE 6640 Ref:61/21/13ChemE 6640 Ref:71/21/13
Cornell - CHEME - 6640
Champlain Hudson Power ExpressChamplain Hudson Power ExpressCommercialization Generator Push2Champlain Hudson Power ExpressDelivering Clean, Reliable Power3Champlain Hudson Power ExpressCreating Jobs and Fueling Economic GrowthNote: Economic stud