Ch06 North Harris college

Ch06 North Harris college - 1. When is a physical inventory...

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1.   When is a physical inventory usually taken?    Student  Response Correct Answer Feedback A.  Both when goods  are not being sold  or received and at  the end of the  company's fiscal  year.      B. When the company  has its greatest  amount of  inventory.    A physical inventory count is usually taken at the  end of the company's fiscal year, not when the  company has the greatest amount of inventory  (Determining Inventory Quantities).  C.  When goods are  not being sold or  received.      D.  At the end of the  company's fiscal  year.      Score: 0/0    2.
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  Which of the following should not be included in the physical inventory of a company?    Student  Response Correct Answer Feedback A.  Goods held on  consignment from  another company.      B.  Goods shipped on  consignment to  another company.      C. All of these should  be included.    Because answer a is correct, this answer cannot be  correct.  D.  Goods in transit  from another  company shipped  FOB shipping  point.      Score: 0/0    3.
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  Kam Company has the following units and costs:    Units Unit Cost Inventory, Jan. 1 8,000 $11 Purchase, June 19 13,000 12 Purchase, Nov. 8    5,000 13 If 9,000 units are on hand at December 31, what is the cost of the ending inventory under FIFO?   Student  Response Correct Answer Feedback A.  $99,000.      B.  $113,000.      C.  $117,000.      D. $108,000.    This figure comes from multiplying 9,000 units  times the cost of $12 per unit. Ending inventory  under FIFO uses the most recent costs in  computing ending inventory. It is computed as  follows: $65,000 (5,000 X $13) + $48,000 (4,000 X  $12) = $113,000 (First-In, First-out, FIFO).  Score: 0/0    4.
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  Kam Company has the following units and costs.    Units Unit Cost Inventory, Jan. 1 8,000 $11 Purchase, June 19 13,000 12 Purchase, Nov. 8    5,000 13 What is the cost of the ending inventory under LIFO?   Student  Response Correct Answer Feedback A. $100,000.    Correct!  B.  $99,000.      C.  $108,000.      D.  $113,000.      Score: 0/0    5.   In periods of rising prices, LIFO will produce:    Student  Response Correct Answer Feedback A.  higher net income  than average  costing.      B.  the same net  income as FIFO.      C. lower net income  than FIFO.    Correct!  D.  higher net income  than FIFO.      Score: 0/0    6.
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  Considerations that affect the selection of an inventory costing method do  not  include:    Student  Response Correct Answer Feedback A.  balance sheet  effects.   
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This note was uploaded on 11/02/2008 for the course ACCT 1301 taught by Professor Worm during the Spring '08 term at Texas San Antonio.

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Ch06 North Harris college - 1. When is a physical inventory...

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