FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Inventory and Cost of Goods Sold

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

A manufacturer's inventory consists of what type of inventory?

A) Raw materials.
B) Finished goods.
C) Work-in-process.
D) All of the other answers are included in a manufacturer's inventory.

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following considerations may influence a manager's choice of the inventory cost flow assumption for a company that experiences rising prices?

A) Compensation/bonus tied to reported income.
B) Meeting earnings targets.
C) Increase stock prices.
D) All of the other answers are considerations for the choice of inventory cost flow assumptions.

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

If A sells to B,and B obtains title while goods are in transit,the goods were shipped _______.If C sells to D,and C maintains title until the goods arrive at D's door then the goods were shipped _______.

Gross profit equals net sales of inventory less cost of goods sold.

Using the first-in,first-out method (FIFO),the first units purchased are assumed to be the first ones sold.

LeGrand Corporation reported the following amounts in its income statement: What was LeGrand's gross profit? $\begin{array} { | l | r | } \hline \text { Sales revenue } & \$ 440,000 \\\hline \text { Advertising expense } & 60,000 \\\hline \text { Interest expense } & 10,000 \\\hline \text { Salaries expense } & 55,000 \\\text { Utilities expense } & 25,000 \\\hline \text { Income tax expense } & 45,000 \\\hline \text { Cost of goods sold } & 180,000 \\\hline\end{array}$

The inventory costing method that matches each unit of inventory with its actual cost is referred to as the _____ method.

Generally,a higher inventory turnover ratio reflects positively on a company's ability to manage its inventory.

The choice of inventory cost flow assumptions affects which of the following amounts?

Which inventory cost flow assumption more realistically matches the current cost of inventory with current sales revenue?

LeGrand Corporation reported the following amounts in its income statement: What was LeGrand's operating income? $\begin{array} { | l | r | } \hline \text { Sales revenue } & \$ 440,000 \\\hline \text { Advertising expense } & 60,000 \\\hline \text { Interest expense } & 10,000 \\\hline \text { Salaries expense } & 55,000 \\\text { Utilities expense } & 25,000 \\\hline \text { Income tax expense } & 45,000 \\\hline \text { Cost of goods sold } & 180,000 \\\hline\end{array}$

Cost of goods sold equals:

Anthony Corporation reported the following amounts for the year: Anthony's gross profit ratio is: $\begin{array} { | l | r | } \hline \text { Net sales } & \$ 296,000 \\\hline \text { Cost of goods sold } & 138,000 \\\text { Average inventory } & 50,000 \\\hline\end{array}$

Which measure reflects profitability from normal operations and a key performance measure for predicting the future profit-generating ability of a company?

Gross profit is calculated as net sales minus:

In a period of rising costs,which inventory valuation method would a company likely choose if they want to have the highest possible balance of inventory on the balance sheet?

Baker Fine Foods has beginning inventory for the year of $12,000.During the year,Baker purchases inventory for $150,000 and ends the year with $20,000 of inventory.Baker will report cost of goods sold equal to:

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

Good Inc. ,sold inventory for $1,200 that was purchased for $700.Good records which of the following when it sells inventory using a perpetual inventory system?

The following information pertains to Julia & Company: March 1 Beginning inventory = 30 units @ $5 March 3 Purchased 15 units @ $4 March 9 Sold 25 units @ $8 What is the cost of goods sold for Julia & Company assuming it uses LIFO?