TRUE FALSE—Conceptual
1. A manufacturing concern would report the cost of units only partially processed as inventory in the balance sheet.
2. Both merchandising and manufacturing companies normally have multiple inventory accounts.
3. A modified perpetual inventory system provides detailed inventory records of increases and decreases in quantities only–not dollar amounts.
4. If a supplier ships goods f.o.b. destination, title passes to the buyer when the supplier delivers the goods to the common carrier.
5. Freight charges on goods purchased are considered a period cost and therefore are not part of the cost of the inventory.
6. Purchase Discounts Lost is a financial expense and is reported in the “other expenses and losses” section of the income statement.
7. The cost flow assumption adopted must be consistent with the physical movement of the goods.
8. In all cases when FIFO is used, the cost of goods sold would be the same whether a perpetual or periodic system is used.
9. Use of LIFO provides a tax benefit in an industry where unit costs tend to decrease as production increases.
10. LIFO is inappropriate where unit costs tend to decrease as production increases.
11. The change in the LIFO Reserve from one period to the next is recorded as an adjustment to Cost of Goods Sold.
12. Many companies use LIFO for both tax and internal reporting purposes.
13. LIFO liquidation often distorts net income, but usually leads to substantial tax savings.
14. LIFO liquidations can occur frequently when using a specific-goods LIFO approach.
15. Dollar-value LIFO techniques help protect LIFO layers from erosion.
16. The dollar-value LIFO method measures any increases and decreases in a pool in terms of total dollar value and physical quantity of the goods in the inventory pool.
17. A disadvantage of LIFO is that it does not match more recent costs against current revenues as well as FIFO.
18. The LIFO conformity rule requires that if a company uses LIFO for tax purposes, it must also use LIFO for financial accounting purposes.
19. If ending inventory is understated, then net income is understated.
20. If both purchases and ending inventory are overstated by the same amount, net income is not affected.
MULTIPLE CHOICE—Conceptual
21. Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer?
a. Raw materials.
b. Work-in-process.
c. Finished goods.
d. Supplies.
22. Which of the following methods is also referred as “parking transactions”?
a. Consignment sales.
b. Sales on installment.
c. Sales with high rates of return.
d. Sales with buyback agreement.
23. Under what circumstances should a company with high rate of return on sales consider the inventory sold?
a. When it can reasonably estimate the amount of returns
b. When the retailer gives a confirmation that the goods won’t be returned
c. When the goods are sold on installment
d. When the payment for goods is received
24. Why are inventories included in the computation of net income?
a. To determine cost of goods sold.
b. To determine sales revenue.
c. To determine merchandise returns.
d. Inventories are not included in the computation of net income.
25. Which of the following is a characteristic of a perpetual inventory system?
a. Inventory purchases are debited to a Purchases account.
b. Inventory records are not kept for every item.
c. Cost of goods sold is recorded with each sale.
d. Cost of goods sold is determined as the amount of purchases less the change in inventory.
26. How is a significant amount of consignment inventory reported in the balance sheet?
a. The inventory is reported separately on the consignor's balance sheet.
b. The inventory is combined with other inventory on the consignor's balance sheet.
c. The inventory is reported separately on the consignee's balance sheet.
d. The inventory is combined with other inventory on the consignee's balance sheet.
27. Where should goods in transit that were recently purchased f.o.b. destination be included on the balance sheet?
a. Accounts payable.
b. Inventory.
c. Equipment.
d. Not on the balance sheet.
28. If a company uses the periodic inventory system, what is the impact on net income of including goods in transit f.o.b. shipping point in purchases, but not ending inventory?
a. Overstate net income.
b. Understate net income.
c. No effect on net income.
d. Not sufficient information to determine effect on net income.
29. If a company uses the periodic inventory system, what is the impact on the current ratio of including goods in transit f.o.b. shipping point in purchases, but not ending inventory?
a. Overstate the current ratio.
b. Understate the current ratio.
c. No effect on the current ratio.
d. Not sufficient information to determine effect on the current ratio.
30. What is consigned inventory?
a. Goods that are shipped, but title transfers to the receiver.
b. Goods that are sold, but payment is not required until the goods are sold.
c. Goods that are shipped, but title remains with the shipper.
d. Goods that have been segregated for shipment to a customer.
31. When using a perpetual inventory system,
a. no Purchases account is used.
b. a Cost of Goods Sold account is used.
c. two entries are required to record a sale.
d. All of these answer choices are correct.
32. Goods in transit which are shipped f.o.b. shipping point should be
a. included in the inventory of the seller.
b. included in the inventory of the buyer.
c. included in the inventory of the shipping company.
d. None of these answer choices are correct.
33. Goods in transit which are shipped f.o.b. destination should be
a. included in the inventory of the seller.
b. included in the inventory of the buyer.
c. included in the inventory of the shipping company.
d. none of these answers are correct.
34. Which of the following items should be included in a company's inventory at the balance sheet date?
a. Goods in transit which were purchased f.o.b. destination.
b. Goods received from another company for sale on consignment.
c. Goods sold to a customer which are being held for the customer to call for at his or her convenience.
d. None of these answer choices are correct.
During 2017 Carne Corporation transferred inventory to Nolan Corporation and agreed to repurchase the merchandise early in 2018. Nolan then used the inventory as collateral to borrow from Norwalk Bank, remitting the proceeds to Carne. In 2018 when Carne repurchased the inventory, Nolan used the proceeds to repay its bank loan.
35. This transaction is known as a(n)
a. consignment.
b. installment sale.
c. assignment for the benefit of creditors.
d. product financing arrangement.
Hay Company had January 1 inventory of $300,000 when it adopted dollar-value LIFO. During the year, purchases were $1,800,000 and sales were $3,000,000. December 31 inventory at year-end prices was $379,500, and the price index was 110.
36. On whose books should the cost of the inventory appear at the December 31, 2017 balance sheet date?
a. Carne Corporation
b. Nolan Corporation
c. Norwalk Bank
d. Nolan Corporation, with Carne making appropriate note disclosure of the transaction
37. Goods on consignment are
a. included in the consignee's inventory.
b. included in the consignor’s inventory.
c. included in the consignee’s revenue.
d. included in both the consignee’s and the consignor’s inventory.
S38. Valuation of inventories requires the determination of all of the following except
a. the costs to be included in inventory.
b. the physical goods to be included in inventory.
c. the cost of goods held on consign¬ment from other companies.
d. the cost flow assumption to be adopted.
P39. The accountant for the Pryor Sales Company is preparing the income statement for 2017 and the balance sheet at December 31, 2017. Pryor uses the periodic inventory system. The January 1, 2017 merchandise inventory balance will appear
a. only as an asset on the balance sheet.
b. only in the cost of goods sold section of the income statement.
c. as a deduction in the cost of goods sold section of the income statement and as a current asset on the balance sheet.
d. as an addition in the cost of goods sold section of the income statement and as a current asset on the balance sheet.
P40. If the beginning inventory for 2017 is overstated, the effects of this error on cost of goods sold for 2017, net income for 2017, and assets at December 31, 2018, respectively, are
a. overstatement, understatement, overstatement.
b. overstatement, understatement, no effect.
c. understatement, overstatement, overstatement.
d. understatement, overstatement, no effect.
S41. The failure to record a purchase of mer¬chandise on account even though the goods are properly included in the physical inven¬tory results in
a. an overstatement of assets and net income.
b. an understatement of assets and net income.
c. an understatement of cost of goods sold and liabilities and an overstatement of assets.
d. an understatement of liabilities and an overstatement of owners' equity.
42. Dolan Co. received merchandise on consignment. As of March 31, Dolan had recorded the transaction as a purchase and included the goods in inventory. The effect of this on its financial statements for March 31 would be
a. no effect.
b. net income was correct and current assets and current liabilities were overstated.
c. net income, current assets, and current liabilities were overstated.
d. net income and current liabilities were overstated.
43. Green Co. received merchandise on consignment. As of January 31, Green included the goods in inventory, but did not record the transaction. The effect of this on its financial statements for January 31 would be
a. net income, current assets, and retained earnings were overstated.
b. net income was correct and current assets were understated.
c. net income and current assets were overstated and current liabilities were understated.
d. net income, current assets, and retained earnings were understated.
44. Feine Co. accepted delivery of merchandise which it purchased on account. As of December 31, Feine had recorded the transaction, but did not include the merchandise in its inventory. The effect of this on its financial statements for December 31 would be
a. net income, current assets, and retained earnings were understated.
b. net income was correct and current assets were understated.
c. net income was understated and current liabilities were overstated.
d. net income was overstated and current assets were understated.
45. On June 15, 2017, Wynne Corporation accepted delivery of merchandise which it pur-chased on account. As of June 30, Wynne had not recorded the transaction or included the merchandise in its inventory. The effect of this on its balance sheet for June 30, 2017 would be
a. assets and stockholders' equity were overstated but liabilities were not affected.
b. stockholders' equity was the only item affected by the omission.
c. assets, liabilities, and stockholders' equity were understated.
d. assets and liabilities were understated but stockholders’ equity was not affected.
46. What is the effect of a $50,000 overstatement of last year's inventory on current years ending retained earning balance?
a. Understated by $50,000.
b. No effect.
c. Overstated by $50,000.
d. Need more information to determine.
47. Which of the following is a product cost as it relates to inventory?
a. Selling costs.
b. Interest costs.
c. Raw materials.
d. Abnormal spoilage.
48. Which of the following is a period cost?
a. Direct costs.
b. Freight in.
c. Production costs.
d. Selling costs.
49. Which method may be used to record cash discounts a company receives for paying suppliers promptly?
a. Net method.
b. Gross method.
c. Average method.
d. Both the net method and the gross method.
50. Which of the following is included in inventory costs?
a. Product costs.
b. Period costs.
c. Product and period costs.
d. Neither product or period costs.
51. Which of the following is correct?
a. Selling costs are product costs.
b. Manufacturing overhead costs are product costs.
c. Interest costs for routine inventories are product costs.
d. All of these answers are correct.
52. All of the following costs should be charged against revenue in the period in which costs are incurred except for
a. manufacturing overhead costs for a product manufactured and sold in the same accounting period.
b. costs which will not benefit any future period.
c. costs from idle manufacturing capacity resulting from an unexpected plant shutdown.
d. costs of normal shrinkage and scrap incurred for the manufacture of a product in ending inventory.
53. Which of the following types of interest cost incurred in connection with the purchase or manufacture of inventory should be capitalized as a product cost?
a. Purchase discounts lost
b. Interest incurred during the production of discrete projects such as ships or real estate projects
c. Interest incurred on notes payable to vendors for routine purchases made on a repetitive basis
d. All of these should be capitalized.
54. The use of a Purchase Discounts Lost account implies that the recorded cost of a purchased inventory item is its
a. invoice price.
b. invoice price plus the purchase discount lost.
c. invoice price less the purchase discount taken.
d. invoice price less the purchase discount allowable whether taken or not.
55. The use of a Purchase Discounts account implies that the recorded cost of a purchased inventory item is its
a. invoice price.
b. invoice price plus any purchase discount lost.
c. invoice price less the purchase discount taken.
d. invoice price less the purchase discount allowable whether taken or not.
During 2017, which was the first year of operations, Oswald Company had merchandise purchases of $985,000 before cash discounts. All purchases were made on terms of 2/10, n/30. Three-fourths of the items purchased were paid for within 10 days of purchase. All of the goods available had been sold at year end.
56. Which of the following recording procedures would result in the highest cost of goods sold for 2017?
1. Recording purchases at gross amounts
2. Recording purchases at net amounts, with the amount of discounts not taken shown under "other expenses" in the income statement
a. 1
b. 2
c. Either 1 or 2 will result in the same cost of goods sold.
d. Cannot be determined from the information provided.
During 2017, which was the first year of operations, Oswald Company had merchandise purchases of $985,000 before cash discounts. All purchases were made on terms of 2/10, n/30. Three-fourths of the items purchased were paid for within 10 days of purchase. All of the goods available had been sold at year end.
57. Which of the following recording procedures would result in the highest net income for 2017?
1. Recording purchases at gross amounts
2. Recording purchases at net amounts, with the amount of discounts not taken shown under "other expenses" in the income statement
a. 1
b. 2
c. Either 1 or 2 will result in the same net income.
d. Cannot be determined from the information provided.
58. When using the periodic inventory system, which of the following generally would not be separately accounted for in the computation of cost of goods sold?
a. Trade discounts applicable to purchases during the period
b. Cash (purchase) discounts taken during the period
c. Purchase returns and allowances of merchandise during the period
d. Cost of freight-in for merchandise purchased during the period
S59. Costs which are inventoriable include all of the following except
a. costs that are directly connected with the bringing of goods to the place of business of the buyer.
b. costs that are directly connected with the converting of goods to a salable condition.
c. buying costs of a purchasing department.
d. selling costs of a sales department.
P60. Which inventory costing method most closely approximates current cost for each of the following:
Ending Inventory Cost of Goods Sold
a. FIFO FIFO
b. FIFO LIFO
c. LIFO FIFO
d. LIFO LIFO
61. In situations where there is a rapid turnover, an inventory method which produces a balance sheet valuation similar to the first-in, first-out method is
a. average cost.
b. base stock.
c. joint cost.
d. prime cost.
62. The pricing of issues from inventory must be deferred until the end of the accounting period under the following method of inventory valuation:
a. moving-average.
b. weighted-average.
c. LIFO perpetual.
d. FIFO.
63. An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is
a. FIFO.
b. LIFO.
c. base stock.
d. weighted-average.
64. Which method of inventory pricing best approximates specific identification of the actual flow of costs and units in most manufacturing situations?
a. Average cost
b. First-in, first-out
c. Last-in, first-out
d. Base stock
65. Assuming no beginning inventory, what can be said about the trend of inventory prices if cost of goods sold computed when inventory is valued using the FIFO method exceeds cost of goods sold when inventory is valued using the LIFO method?
a. Prices decreased.
b. Prices remained unchanged.
c. Prices increased.
d. Price trend cannot be determined from information given.
66. In a period of rising prices, the inventory method which tends to give the highest reported net income is
a. base stock.
b. first-in, first-out.
c. last-in, first-out.
d. weighted-average.
67. In a period of rising prices, the inventory method which tends to give the highest reported inventory is
a. FIFO.
b. moving average.
c. LIFO.
d. weighted-average.
68. Tanner Corporation's inventory on its balance sheet was lower using first-in, first-out than it would have been using last-in, first-out. Assuming no beginning inventory, in what direction did the cost of purchases move during the period?
a. Up
b. Down
c. Steady
d. Cannot be determined
69. In a period of rising prices, the inventory method which tends to give the highest reported cost of goods sold is
a. FIFO.
b. average cost.
c. LIFO.
d. None of these choices are correct.
70. Which of the following statements is not valid as it applies to inventory costing methods?
a. If inventory quantities are to be maintained, part of the earnings must be invested (plowed back) in inventories when FIFO is used during a period of rising prices.
b. LIFO tends to smooth out the net income pattern by matching current cost of goods sold with current revenue, when inventories remain at constant quantities.
c. When a firm using the LIFO method fails to maintain its usual inventory position (reduces stock on hand below customary levels), there may be a matching of old costs with current revenue.
d. The use of FIFO permits some control by management over the amount of net income for a period through controlled purchases, which is not true with LIFO.
71. The acquisition cost of a certain raw material changes frequently. The book value of the inventory of this material at year end will be the same if perpetual records are kept as it would be under a periodic inventory method only if the book value is computed under the
a. weighted-average method.
b. moving average method.
c. LIFO method.
d. FIFO method.
72. Which of the following is a reason why the specific identification method may be considered ideal for assigning costs to inventory and cost of goods sold?
a. The potential for manipulation of net income is reduced.
b. There is no arbitrary allocation of costs.
c. The cost flow matches the physical flow.
d. Able to use on all types of inventory.
73. In a period of rising prices which inventory method generally provides the greatest amount of net income?
a. Average cost.
b. FIFO.
c. LIFO.
d. Specific identification.
74. In a period of falling prices, which inventory method generally provides the greatest amount of net income?
a. Average cost.
b. FIFO.
c. LIFO.
d. Specific identification.
75. What is a LIFO reserve?
a. The difference between the LIFO inventory and the amount used for internal reporting purposes.
b. The tax savings attributed to using the LIFO method.
c. The current effect of using LIFO on net income.
d. Change in the LIFO inventory during the year.
76. When a company uses LIFO for external reporting purposes and FIFO for internal reporting purposes, an Allowance to Reduce Inventory to LIFO account is used. This account should be reported
a. on the income statement in the Other Revenues and Gains section.
b. on the income statement in the Cost of Goods Sold section.
c. on the income statement in the Other Expenses and Losses section.
d. on the balance sheet in the Current Assets section.
77. Which of the following statements is true about specific-goods pooled LIFO approach?
a. It determines and measures any increases and decreases in a pool in terms of total dollar value.
b. Most companies using a LIFO system prefer specific-goods pooled LIFO approach over dollar-value LIFO.
c. It usually results in large LIFO liquidation.
d. The reduction of one quantity in the pool may be offset by an increase in another.
78. In the double-extension method, the value of the units in inventory is extended at:
a. twice the base-year prices.
b. twice the current year prices.
c. both base-year prices and current-year prices.
d. only the base-year prices.
79. In the context of dollar-value LIFO, what is a LIFO layer?
a. The difference between the LIFO inventory and the amount used for internal reporting purposes.
b. The LIFO value of the inventory for a given year.
c. The inventory in base year dollars.
d. The LIFO value of an increase in the inventory for a given year.
S80. Which of the following statements is not true as it relates to the dollar-value LIFO inven¬tory method?
a. It is easier to erode LIFO layers using dollar-value LIFO techniques than it is with specific goods pooled LIFO.
b. Under the dollar-value LIFO method, it is possible to have the entire inventory in only one pool.
c. Several pools are commonly employed in using the dollar-value LIFO inventory method.
d. Under dollar-value LIFO, increases and decreases in a pool are determined and measured in terms of total dollar value, not physical quantity.
S81. Which of the following is not considered an advantage of LIFO when prices are rising?
a. The inventory will be overstated.
b. The more recent costs are matched against current revenues.
c. There will be a deferral of income tax.
d. A company's future reported earnings will not be affected substantially by future price declines.
82. Which of the following is true regarding the use of LIFO for inventory valuation?
a. If LIFO is used for external financial reporting, then it must also be used for internal reports.
b. For purposes of external financial reporting, LIFO may not be used with the lower of cost or market approach.
c. If LIFO is used for external financial reporting, then it cannot be used for tax purposes.
d. None of these answers are correct.
83. The tax benefit that the LIFO method provides might get nullified when:
a. unit costs tend to decrease as production increases.
b. unit costs tend to increase as production increases.
c. revenues are increasing faster than costs.
d. a fairly constant “base stock” is present.
MULTIPLE CHOICE—Computational
84. Morgan Manufacturing Company has the following account balances at year end:
Office supplies $ 4,000
Raw materials 27,000
Work-in-process 59,000
Finished goods 97,000
Prepaid insurance 6,000
What amount should Morgan report as inventories in its balance sheet?
a. $97,000.
b. $101,000.
c. $183,000.
d. $187,000.
85. Lawson Manufacturing Company has the following account balances at year end:
Office supplies $ 4,000
Raw materials 27,000
Work-in-process 59,000
Finished goods 109,000
Prepaid insurance 6,000
What amount should Lawson report as inventories in its balance sheet?
a. $109,000.
b. $113,000.
c. $195,000.
d. $199,000.
86. Elkins Corporation uses the perpetual inventory and the gross method. On March 1, it purchased $50,000 of inventory, terms 2/10, n/30. On March 3, Elkins returned goods that cost $5,000. On March 9, Elkins paid the supplier. On March 9, Elkins should credit
a. purchase discounts for $1,000.
b. inventory for $1,000.
c. purchase discounts for $900.
d. inventory for $900.
87. Malone Corporation uses the perpetual inventory and the gross method. On March 1, it purchased $80,000 of inventory, terms 2/10, n/30. On March 3, Malone returned goods that cost $8,000. On March 9, Malone paid the supplier. On March 9, Malone should credit
a. purchase discounts for $1,600.
b. inventory for $1,600.
c. purchase discounts for $1,440.
d. inventory for $1,440.
88. Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods were on hand. In addition, Bell, Inc. determined that $60,000 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $90,000 of goods out on consignment. What amount should Bell report as inventory at the end of the year?
a. $780,000.
b. $860,000.
c. $870,000.
d. $930,000.
89. Bell Inc. took a physical inventory at the end of the year and determined that $840,000 of goods were on hand. In addition, the following items were not included in the physical count. Bell, Inc. determined that $96,000 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count).The company sold $40,000 worth of inventory f.o.b. destination. What amount should Bell report as inventory at the end of the year?
a. $840,000.
b. $936,000.
c. $880,000.
d. $976,000.
90. Risers Inc. reported total assets of $2,400,000 and net income of $320,000 for the current year. Risers determined that inventory was overstated by $24,000 at the beginning of the year (this was not corrected). What is the corrected amount for total assets and net income for the year?
a. $2,400,000 and $320,000.
b. $2,400,000 and $344,000.
c. $2,376,000 and $296,000.
d. $2,424,000 and $344,000.
91. Risers Inc. reported total assets of $6,400,000 and net income of $510,000 for the current year. Risers determined that inventory was understated by $138,000 at the beginning of the year and $60,000 at the end of the year. What is the corrected amount for total assets and net income for the year?
a. $6,460,000 and $570,000.
b. $6,340,000 and $588,000.
c. $6,460,000 and $432,000.
d. $6,400,000 and $510,000.
Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2018 and 2017 contained errors as follows:
2018 2017
Ending inventory $9,000 overstated $24,000 overstated
Depreciation expense $6,000 understated $18,000 overstated
92. Assume that the proper correcting entries were made at December 31, 2017. By how much will 2018 income before taxes be overstated or understated?
a. $ 3,000 understated
b. $ 3,000 overstated
c. $ 6,000 overstated
d. $15,000 overstated
Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2018 and 2017 contained errors as follows:
2018 2017
Ending inventory $9,000 overstated $24,000 overstated
Depreciation expense $6,000 understated $18,000 overstated
93. Assume that no correcting entries were made at December 31, 2017. Ignoring income taxes, by how much will retained earnings at December 31, 2018 be overstated or understated?
a. $ 3,000 understated
b. $22,500 overstated
c. $22,500 understated
d. $27,000 understated
Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2018 and 2017 contained errors as follows:
2018 2017
Ending inventory $9,000 overstated $24,000 overstated
Depreciation expense $6,000 understated $18,000 overstated
94. Assume that no correcting entries were made at December 31, 2017, or December 31, 2018 and that no additional errors occurred in 2019. Ignoring income taxes, by how much will working capital at December 31, 2019 be overstated or understated?
a. $0
b. $ 6,000 overstated
c. $ 6,000 understated
d. $15,000 understated
95. The following information is available for Naab Company for 2017:
Freight-in $ 60,000
Purchase returns 150,000
Selling expenses 460,000
Ending inventory 520,000
The cost of goods sold is equal to 400% of selling expenses. What is the cost of goods available for sale?
a. $1,840,000.
b. $2,300,000.
c. $2,370,000.
d. $2,360,000.
Winsor Co. records purchases at net amounts. On May 5 Winsor purchased merchandise on account, $80,000, terms 2/10, n/30. Winsor returned $6,000 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid.
96. The amount to be recorded as a purchase return is
a. $5,400.
b. $6,120
c. $6,000.
d. $5,880.
Winsor Co. records purchases at net amounts. On May 5 Winsor purchased merchandise on account, $80,000, terms 2/10, n/30. Winsor returned $6,000 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid.
97. By how much should the account payable be adjusted on May 31?
a. $ 0.
b. $1,720.
c. $1,600.
d. $1,480.
The following information was available from the inventory records of Rich Company for January:
Units Unit Cost Total Cost
Balance at January 1 9,000 $9.77 $87,930
Purchases:
January 6 6,000 10.30 61,800
January 26 8,100 10.71 86,751
Sales:
January 7 (7,500)
January 31 (11,100)
Balance at January 31 4,500
98. Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
a. $47,270.
b. $46,067.
c. $46,170.
d. $46,620.
The following information was available from the inventory records of Rich Company for January:
Units Unit Cost Total Cost
Balance at January 1 9,000 $9.77 $87,930
Purchases:
January 6 6,000 10.30 61,800
January 26 8,100 10.71 86,751
Sales:
January 7 (7,500)
January 31 (11,100)
Balance at January 31 4,500
99. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?
a. $47,270.
b. $46,067.
c. $46,170.
d. $46,620.
Niles Co. has the following data related to an item of inventory:
Inventory, March 1 400 units @ $2.10
Purchase, March 7 1,400units @ $2.20
Purchase, March 16 280 units @ $2.25
Inventory, March 31 520 units
100. The value assigned to ending inventory if Niles uses LIFO is
a. $1,160.
b. $1,104.
c. $1,092.
d. $1,168.
Niles Co. has the following data related to an item of inventory:
Inventory, March 1 400 units @ $2.10
Purchase, March 7 1,400units @ $2.20
Purchase, March 16 280 units @ $2.25
Inventory, March 31 520 units
