ACC 290 Week 4 Practice Quiz
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A company just starting business made the following inventory transactions in August:
|Purchase on August 1||300 units||$1,560|
|Sale on August 8||200 units||3,400|
|Purchase on August 12||400 units||1,340|
|Sale on August 24||350 units||5,950|
Using the LIFO inventory method, how much is cost of goods sold for August using a perpetual inventory system?
A company just starting business made the following purchases in August:
|August 1||300 units||$1,560|
|August 12||400 units||2,340|
|August 24||400 units||2,520|
|August 30||300 units||1,980|
A physical count of the inventory on August 31 reveals that there are 500 units on hand. Using the FIFO inventory method in a perpetual inventory system, how much is the value of the ending inventory on August 31?
Which statement is true in a perpetual inventory system?
|A new average is computed under the average cost method after each sale.|
|Average costs are based entirely on unit-cost simple averages.|
|LIFO cost of goods sold will be the same as in a periodic inventory system.|
|FIFO cost of goods sold will be the same as in a periodic inventory system.|
Inventory turnover is calculated by dividing cost of goods sold by
Net sales are $2,000,000, cost of goods sold is $960,000, and average inventory is $30,000. How many days sales are in inventory?
The following information came from the income statement of the Wilkens Company at December 31, 2017: sales revenue $1,800,000; beginning inventory $160,000; ending inventory $240,000; and gross profit $600,000. What is Wilkens’ inventory turnover ratio for 2017?
Carlos Company had beginning inventory of $80,000, ending inventory of $110,000, cost of goods sold of $285,000, and sales revenue of $475,000. What is Carlos’ days in inventory?
In a period of falling prices, which of the following methods will give the largest net income?
In a period of rising prices which inventory method will result in the greatest amount of income tax expense?
Which of the following is true of the FIFO inventory method?
|It assumes that the cost of the earliest units purchased are the last to be allocated to the beginning inventory.|
|It assumes that the cost of the earliest units purchased are the last to be allocated to cost of goods sold.|
|It assumes that the cost of the earliest units purchased are the first to be allocated to the ending inventory.|
|It assumes that the cost of the earliest units purchased are the first to be allocated to cost of goods sold.|