Grade Details Unit 2 Review

Grade Details Unit 2 Review - Unit 2: Inventories: Cost...

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Unit 2: Inventories: Cost Measurement and Flow Assumptions (Feb 9 - Feb 15) Grade Details Unit 2 Review 1. Question: A manufacturing firm would not normally have an account titled Your Answer: Goods in Process Inventory Raw Materials Inventory Merchandise Inventory CORRECT Finished Goods Inventory 2. Question: Which of the following is not an advantage of a perpetual inventory system? Your Answer: 3. Question: Using the following letters to represent items: P = Purchases (net) C = Cost of goods sold B = Beginning inventory E = Ending inventory Which equation is correct? Your Answer: 4. Question: Walters Co. purchased raw materials with a catalog price of $70,000 on March 2, 2010. Credit terms of 4/20, n/60 applied. Walters uses a perpetual inventory system and the net price method. If Walters pays for the purchase on March 18, 2010, what amount is recorded for inventory on March 2, 2010? Your Answer: Page 1 of 12
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Grade Details Unit 2 Review 5. Question: Which one of the following types of costs should be included in the cost of a manufactured inventory? Your Answer: 6. Question: Concerning purchase discounts, which one of the following statements is true? Your Answer: 7. Question: Which one of the following is not a disadvantage of the LIFO inventory cost flow assumption? Your Answer: 8. Question: Which one of the following cost-flow assumptions provides the lowest inventory value in periods of rising prices? Your Answer:
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Grade Details Unit 2 Review - Unit 2: Inventories: Cost...

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