For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions press or click on the blank space provided.
If you have difficulty answering the following questions, learn more about this topic by reading our Inventory and Cost of Goods Sold (Explanation).
The inventory cost flow assumption where the cost of the most recent purchase is matched first against sales revenues is
The inventory cost flow assumption where the cost of the most recent purchases are likely to remain in inventory
The inventory cost flow assumption where the oldest cost of inventory items is likely to remain on the balance sheet is
The account Inventory will appear on the balance sheet as a current asset at an amount that often reflects the __________ of the merchandise on hand.
The inventory system that does NOT update the Inventory account automatically at the time of each purchase or sales is the _______________ method/system.
If a company is experiencing continuous cost increases for the merchandise that it purchases, which cost flow assumption will result in the least amount of profit and the least amount of income tax expense?
A company in the computer industry is experiencing continuously lower costs. Which cost flow assumption will result in less income tax expense for this company?
A company purchased items for inventory during 2019 at continuously higher costs. Its last two purchases of 2019 were 20 units on December 20 at a cost of $14 per unit and 30 units on December 30 at a cost of $15 per unit. On December 28, 2019 the company made its last sale for the year when it sold 10 units. Which inventory cost flow assumption will cause the $15 cost per unit to be expensed as part of the year 2019's cost of goods sold?
Assuming the LIFO periodic cost flow assumption, what will be the company's cost of goods sold for the 120 items sold in 2019?
Assuming the FIFO periodic cost flow assumption, what will be the company's cost of goods sold for the 120 items sold in 2019?
Assuming the periodic weighted-average cost flow assumption, what is the company's cost of goods sold for the 120 items sold in 2019?
Assuming the LIFO perpetual cost flow assumption, what will be the company's cost of goods sold if 10 units were sold on the last day of each month during the year 2019?
Assuming the perpetual moving-average cost flow assumption, what is the company's cost of goods sold for the 120 items sold in 2019?
A company's inventory was destroyed in a fire on January 28, 2020. The company's December 31, 2019 inventory had a cost of $40,000. The company's gross profit has consistently been 30% of sales. During January the company purchased merchandise costing $36,000 and sales of $50,000 at regular selling prices. What is the estimated cost of the inventory that was destroyed on January 28, 2020?
A retailer has the following information: The estimated cost of inventory to be shown on the retailer's January 31, 2020 balance sheet is
A company has properly recorded all of its purchases of merchandise inventory, but made an error when counting its ending inventory. As a result of the error the company's Inventory account is overstated by $24,000. (This means that the amount in the Inventory account is too high by $24,000.) What is the impact of this error on the company's income statement? Specifically, the company's reported profit (ignoring income tax expense) in the period of the error is...
A retailer's inventory cost should include freight-in on the merchandise purchased with terms FOB shipping point?
Want more practice questions?
Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO.
We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. Click here to learn more.