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Category > Accounting Posted 23 Jun 2017 My Price 10.00

ACC 380 1-4 Quiz Chapter 8

 

1)

In a perpetual inventory system, the cost of purchases is debited to:

Purchases.

Cost of goods sold.

Inventory.

Accounts payable.

2)

In a periodic inventory system, the cost of purchases is debited to:

Purchases.

Cost of goods sold.

Inventory.

Accounts payable.

3)

In a periodic inventory system, the cost of inventories sold is:

Debited to accounts receivable.

Credited to cost of goods sold.

Debited to cost of goods sold.

Not recorded at the time goods are sold.

4)

Ending inventory is equal to the cost of items on hand plus:

Items in transit sold f.o.b. shipping point.

Purchases in transit f.o.b. destination.

Items in transit sold f.o.b. destination.

None of the above.

5)

Using the gross method, purchase discounts lost are:

Included in purchases.

Added to accounts payable.

Included in interest expense.

Deducted from discount income.

6)

Inventory does not include:

Materials used in the production of goods to be sold.

Assets intended to be sold in the normal course of business.

The cost of office equipment.

Assets currently in production for normal sales.

7)

Cost of goods sold is given by:

Beginning inventory - net purchases + ending inventory.

Beginning inventory + accounts payable - net purchases.

Net purchases + ending inventory - beginning inventory.

Net Purchases + beginning inventory - ending inventory.

8)

The largest expense on a retailer's income statement is typically:

Salaries and wages.

Cost of goods sold.

Income tax expense.

Depreciation expense.

9)

The use of LIFO in accounting for a firm's inventory:

Usually matches the physical flow of goods through the business.

Is usually used for internal management purposes.

Usually provides a better match of expenses with revenues.

None of the above is correct.

10)

A company that prepares its financial statements according to International Financial Reporting Standards can use each of the following inventory valuation methods except:

Average cost.

FIFO.

LIFO.

All of the above methods can be used.

11)

Samuelson and Messenger (S&M) began 2013 with 200 units of its one product. These units were purchased near the end of 2012 for $20 each. During the month of January, 100 units were purchased on January 8 for $23 each and another 200 units were purchased on January 19 for $25 each. Sales of 130 units and 110 units were made on January 10 and January 25, respectively. There were 260 units on hand at the end of the month. S&M uses a periodic inventory system.


 

Calculate ending inventory and cost of goods sold for January using (1) FIFO, and (2) average cost. (Round your intermediate calculations to 1 decimal place. Round your average cost per unit to 2 decimal places.)

 

12)

Samuelson and Messenger (S&M) began 2013 with 250 units of its one product. These units were purchased near the end of 2012 for $20 each. During the month of January, 125 units were purchased on January 8 for $23 each and another 250 units were purchased on January 19 for $25 each. Sales of 200 units and 150 units were made on January 10 and January 25, respectively. There were 275 units on hand at the end of the month. S&M uses a perpetual inventory system.


 

Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO method.

 

  

Complete the below table to calculate ending inventory and cost of goods sold for January using average cost method. (Round your cost per unit to 2 decimal places and other answers to nearest whole number. Enter inventory reductions from sales as negative numbers.)

 

 

Answers

SmartExpert
(118)
Status NEW Posted 23 Jun 2017 11:06 AM My Price 10.00

ACC----------- 38-----------0 1------------4 -----------Qui-----------z C-----------hap-----------ter----------- 8-----------

Attachments

file 1498217281-ACC 380 1-4 Quiz Chapter 8.docx preview (525 words )
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