The main basis for recording and reporting inventory

This preview shows page 4 - 8 out of 9 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Managerial Accounting: The Cornerstone of Business Decision-Making
The document you are viewing contains questions related to this textbook.
Chapter 8 / Exercise 8-53
Managerial Accounting: The Cornerstone of Business Decision-Making
Hansen/Mowen
Expert Verified
19.The main basis for recording and reporting inventory isa.costb.gross selling pricec.book valued.current replacement cost20.The lower of cost and market basis of valuing inventories is an exampleofa.comparability4
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Managerial Accounting: The Cornerstone of Business Decision-Making
The document you are viewing contains questions related to this textbook.
Chapter 8 / Exercise 8-53
Managerial Accounting: The Cornerstone of Business Decision-Making
Hansen/Mowen
Expert Verified
Chapter 5 Questionsb.the cost principlec.conservatismd.consistency21.Which of the following is the same as ‘net realisable value’ of inventory?a.gross selling priceb.proceeds of sale less all further marketing, selling anddistribution costsc.Average costd.Replacement price22.Inventory turnover is calculated by dividing cost of goods sold bya.beginning inventoryb.ending inventoryc.average inventoryd.365 days23.The following information relates to product J:Cost$9.00Expected selling price$12.50Marketing & delivery cost$1.40Replacement cost$9.50The net realisable value (NRV) of product J isa.$11.10b.$12.50c.$9.50d.$13.90Exercises5
Chapter 5 QuestionsEx. 1On October 1, Cycle Mania, a bicycle store had an inventory of 15 twelve-speedbicycles at a cost of $150 each. During the month of October the followingtransactions occurred.Oct.3Purchased 25 bicycles at a cost of $150 each from the Lyons BicycleCompany Ltd, terms n/30.6Sold 12 bicycles to Team Australia at $250 each, terms 2/10, n/30.7Received credit from the Lyons Bicycle Company Ltd for the return of2 defective bicycles.13Issued a credit to Team Australia for the return of one defectivebicycle.19Purchased 10 bicycles from Huffy Bicycle Company Ltd at a cost of$125, terms 2/10, n/30.20Paid freight of $80 on the October 19 purchase.InstructionsPrepare the journal entries to record the transactions assuming the companyuses a periodic inventory system.Ex. 2Lakeland Ltd uses a periodic inventory system. During April, the followingtransactions and events occurred.April 3Purchased $1,500 of inventory terms 2/10, n/60.6Returned $300 of the inventory purchased on April 3.7Paid Freight charges of $150 on goods purchased on April 3.12Paid for the goods purchased on April 3.13Sold goods on credit for $1,000, terms 1/10, n/30.14The customer of April 13 returned $200 of the goods.23Received payment from the customer of April 13.InstructionsPrepare the journal entries to record the transactions.Ex. 36
Chapter 5 QuestionsThe income statement of Pine Supplies Ltd includes the items listed below:Net sales$800,000Gross profit on sales320,000Beginning inventory100,000Purchase returns and allowances8,000Freight-in10,000Operating expenses300,000Purchases520,000InstructionsUse the appropriate items listed above as a basis for determining:(a)Cost of goods sold.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture