Test 2 - Test 2 Acct 2301 Summer 2005 Chapters 9-12...

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Test 2 Acct 2301 Summer 2005 Chapters 9-12 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are: a. consigned b. n/30 c. FOB shipping point d. FOB destination ____ 2. If the merchandise costs $4,000, insurance in transit costs $200, tariff costs $50, processing the purchase or- der by the purchasing department costs $35, and the company receiving dock personnel costs $15, what is the total cost charged to the merchandise? a. $4,250 b. $4,285 c. $4,300 d. $4,000 ____ 3. The inventory method that considers the inventory to be composed of the units of merchandise acquired earli- est is called: a. first-in, first-out b. last-in, first-out c. average cost d. retail method ____ 4. Under which method of cost flows is the inventory assumed to be composed of the most recent costs? a. average cost b. last-in, first-out c. first-in, first-out d. weighted average ____ 5. The inventory data for an item for November are: Nov. 1 Inventory. ........ 20 units at $20 4 Sold. ............. 10 units 10 Purchased. ........ 30 units at $21 17 Sold. ............. 20 units 30 Purchased. ........ 10 units at $22 Using the perpetual system, costing by the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30? a. $640 b. $610 c. $620 d. $630 ____ 6. The inventory data for an item for November are: Nov. 1 Inventory. ........ 20 units at $20 4 Sold. ............. 10 units 10 Purchased. ........ 30 units at $21 17 Sold. ............. 20 units 30 Purchased. ........ 10 units at $22
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Using the perpetual system, costing by the last-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30? a. $640 b. $630 c. $660 d. $610 ____ 7. The following lots of a particular commodity were available for sale during the year: Beginning inventory. ........ 10 units at $60 First purchase. ............. 25 units at $63 Second purchase. ............ 30 units at $64 Third purchase. ............. 15 units at $70 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of this inventory ac- cording to the first-in, first-out method? a. $1,200 b. $1,230 c. $1,370 d. $1,400 ____ 8. The following lots of a particular commodity were available for sale during the year: Beginning inventory. ....... 10 units at $60 First purchase. ............ 25 units at $63 Second purchase. ........... 30 units at $64 Third purchase. ............ 10 units at $70 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the last-in, first-out method? a.
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This note was uploaded on 04/21/2011 for the course MATH 101 taught by Professor Wise during the Spring '11 term at Genesee.

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Test 2 - Test 2 Acct 2301 Summer 2005 Chapters 9-12...

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