A company reported the following information for its most recentyear of operation: purchases, $105,000; beginning inventory,$22,500; and cost of goods sold, $115,000. How much was thecompany’s ending inventory?
$12,500
$22,500
$17,500
$32,500
Lauer Corporation uses the periodic inventory system and hasprovided the following information about one of their laptopcomputers:
Date Transaction Number of Units Cost per Unit
1/1 Beginning Inventory 130 $830
5/5 Purchase 230 $930
8/10 Purchase 330 $1,030
10/15 Purchase 215 $1,080
During the year, 825 laptop computers were sold.
What was ending inventory using the FIFO cost flow assumption?
$86,400
$86,400
$85,900
$66,400
Lauer Corporation uses the periodic inventory system and hasprovided the following information about one of their laptopcomputers:
Date Transaction Number of Units Cost per Unit
1/1 Beginning Inventory 170 $870
5/5 Purchase 270 $970
8/10 Purchase 370 $1,070
10/15 Purchase 235 $1,120
During the year, 925 laptop computers were sold.
What was cost of goods sold using the FIFO cost flowassumption?
$934,500
$964,500
$946,156
$942,500
A corporation has provided the following information about one oftheir products:
Date Transaction Number of Units Cost per Unit
1/1 Beginning Inventory 210 $142
6/5 Purchase 410 $162
11/15 Purchase 110 $202
During the year, 420 units were sold. What is ending inventoryusing the average cost method? (Do not round your intermediatecalculations, round the final answer to nearest dollar amount.)
$50,305
$66,420
$52,305
$64,420
Moore Company purchased an item for inventory that cost $29 perunit and was priced to sell at $48. It was determined that thereplacement cost is $27 per unit. Using the lower-of-cost-or-market rule, what amount should be reported on the balance sheetfor inventory?
Which of the following is correct when beginning inventory isunderstated by $1,600 and ending inventory is understated by$850?
Net income is understated by$750.
Net income is understated by $2,450.
Net income is overstated by $750.
Net income is overstated by $2,450.
$27
$29
$21
$48
Tinker’s 2011 cost of goods sold was $920,000 and 2010 cost ofgoods sold was $940,000. The inventory at the end of 2011 was$205,000 and $225,000 at the end of 2010. What was Tinker’sinventory turnover during 2011?
4.28
4.49
4.37
4.18
Wilmington Company reported pretax income of $28,200 during 2010and $33,300 during 2011. Later it was discovered that the endinginventory for 2010 was understated by $3,600 (and not corrected in2011). What is the correct pretax income for each year?
2010 2011
A. $24,600 $36,900
B. $31,800 $36,900
C. $31,800 $29,700
D. $24,600 $29,700
Option A
Option B
Option C
Option D
Which of the following costs is not included as inventory on thebalance sheet?
Raw materials currently being used in the manufacturingprocess.
Work in process.
Finished goods.
Storage costs for finished goods.
Which of the following costs will not affect cost of goodssold?
Inventory inspection costs.
Inventory preparation costs.
Inventory related selling costs.
Freight charges incurred to acquire inventory.
Under the FIFO cost flow assumption during a period of inflation,which of the following is false?
Income tax expense will be higher than under LIFO.
Gross margin will be higher than under LIFO.
Ending inventory will be lower than underLIFO.
Cost of goods sold will be lower than under LIFO.either theperpetual or periodic inventory systems?
In a perpetual inventory system, the inventory account is notchanged for each purchase during the accounting period.
In a perpetual inventory system, cost of goods soldis recorded at the time of each sale during the accountingperiod.
In a periodic inventory system, cost of goods sold is developedfrom a comparison of beginning inventory and ending inventoryonly.
In a periodic inventory system, the inventory account is increasedfor each purchase during the accounting period.
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