Financial Accounting HW - 90 minute time limit

The specific identification method and the FIFO method produce the same results under both the perpetual and periodic inventory systems.

 

Supply-chain management helps companies maintain lower levels of inventory.

 

Freight charges associated with the purchase of inventory normally are not included in inventory cost.

 

Direct materials and direct labor are components of manufacturing overhead.

 

The costs of an automated perpetual inventory system are considerable because they include the costs of automating the system, maintaining the system, and taking a physical inventory.

 

An understatement of year 1's beginning inventory will

 

An understatement of ending inventory in one period results in

 

Which of the following would normally be included in the inventory?

 

Which costing method assumes that the cost of the first items acquired should be assigned to the first items sold?

 

Inventory turnover is expressed in terms of

 

Which of the following is an inventory valuation method?

 

Which costing method is based on the reasoning that the fairest determination of income occurs if the current costs are matched against current sales prices?

 

Which of the following is an inventory costing method?

 

Which of the following costs usually would not be included in the inventory cost?

 

Days' inventory on hand equals 365 divided by

 

Use this inventory information for the month of August to answer the following question.

	Aug.	1		Beginning inventory	10 units @ $130
		5		Purchase	60 units @ $122
		14		Sale	40 units
		21		Purchase	30 units @ $126
		31		Sale	28 units

Assuming that a perpetual inventory system is used, what is ending inventory on a FIFO basis?

 

Powell’s inventory turnover is 4.8. What is Powell’s day’s inventory on hand?

 

Use this information to answer the following question.

	Beginning inventory	100 units @ $8.00
	Purchase—Oct.	200 units @ $6.00
	Purchase—Dec.	100 units @ $12.00

A periodic inventory system is used; ending inventory is 150 units.

What is ending inventory under the average-cost method?

 

Use this inventory information for the month of March to answer the following question.

	March	1		Beginning inventory	30 units @ $56
		7		Purchase	60 units @ $60
		18		Sale	25 units
		22		Purchase	10 units @ $66
		29		Sale	40 units

Assuming that a periodic inventory system is used, what is cost of goods sold on a FIFO basis?

 

Average inventory equals $200,000, and cost of goods sold equals $442,000. Days' inventory on hand equals