Ch8 Homework graded with errors

Ch8 Homework graded with errors - Question 1: Score 0.66/1...

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Unformatted text preview: Question 1: Score 0.66/1 Question 2: Score 1.6/2 Total grade: 0.0×1/6 + 1.0×1/6 + 1.0×1/6 + 1.0×1/6 + 1.0×1/6 + 0.0×1/6 = 0% + 17% + 17% + 17% + 17% + 0% Your response Correct response Exercise 8.1: Accounting Terminology L.O. 1-8 Listed below are eight technical accounting terms introduced in this chapter. Retail method FIFO method Lower-of-cost-or-market Gross profit method LIFO method Specific identification Flow assumption Average-cost method Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the term described, or answer "None" if the statement does not correctly describe any of the terms. a. A pattern of transferring unit costs from the Inventory account to the Cost of Goods Sold that may (or may not) parallel the physical flow of merchandise. Specific identification (0%) b. The only flow assumption in which all units of merchandise are assigned the same per-unit cost. Average- cost method (17%) c. The method used to record the cost of goods sold when each unit in the inventory is unique. Specific identification (17%) d. The most conservative of the flow assumptions during a period of sustained inflation. LIFO method (17%) e. The flow assumption that provides the most current valuation of inventory in the balance sheet. FIFO method (17%) f. A technique for estimating the cost of goods sold and the ending inventory that is based on the relationship between cost and sales price during the current accounting period. Gross profit method (0%) Exercise 8.1: Accounting Terminology L.O. 1-8 Listed below are eight technical accounting terms introduced in this chapter. Retail method FIFO method Lower-of-cost-or-market Gross profit method LIFO method Specific identification Flow assumption Average-cost method Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the term described, or answer "None" if the statement does not correctly describe any of the terms. a. A pattern of transferring unit costs from the Inventory account to the Cost of Goods Sold that may (or may not) parallel the physical flow of merchandise. Flow assumption b. The only flow assumption in which all units of merchandise are assigned the same per-unit cost. Average- cost method c. The method used to record the cost of goods sold when each unit in the inventory is unique. Specific identification d. The most conservative of the flow assumptions during a period of sustained inflation. LIFO method e. The flow assumption that provides the most current valuation of inventory in the balance sheet. FIFO method f. A technique for estimating the cost of goods sold and the ending inventory that is based on the relationship between cost and sales price during the current accounting period. Retail method Your response Correct response Exercise 8.6: Inventory Write-Downs L.O. 3 Late in the year, Software City began carrying WordCrafter, a new word processing software program. At Late in the year, Software City began carrying WordCrafter, a new word processing software program....
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This note was uploaded on 09/24/2008 for the course ACCT 116A taught by Professor Tuttle during the Summer '08 term at San Diego.

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Ch8 Homework graded with errors - Question 1: Score 0.66/1...

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