-
Question 4: complete the following statements: No. statement complete 1 expenses incurred in the process of earning sales revenue (Examples: sales salaries and insurance expense) 2 ..... profit equal Sales Revenue less Cost of Goods Sold 3 .......... Inventory: Detailed records of the cost of each item are maintained, and the cost of each item sold is determined from records when the sale occurs. 4 ......... Inventory: Cost of goods sold is determined only at the end of an accounting...
-
26. An ventory available. that yields the 21. Physical cons of inventory: 1. Are not necessary under the perpetual system. R. Are meressary to adjust the loventory account to the actual inventory Must be taken at least once a month. D. Requires the use of hand-held portable computers. Are a necessary under the cost to benefit constraint. 22. During a period of steadily rising costs, the inventory valuation method that yields lowest reported net income is: A. Specific identification method....
-
True or False
Unsold consigned merchandise should be included in the
consignee’s inventory.
If ending inventory for the year is understated, net income for
the year is overstated.
In the inventory for the year is overstated, owner’s equity
reported on the balance sheet at the end of the year is
understated.
The specific identification inventory method should be used
when the inventory consists of identical. Low cost units that are
purchased and sold frequently.
Of the three widely used inventory...
-
There is an error in computing ending inventory in Year 1. Which
statement is TRUE?
Question 10 options:
A)
The total gross profit for Year 1 and Year 2 combined will be
correct.
B)
Gross profit will continue to be incorrect until an adjusting
entry is made.
C)
The error will have no effect on Year 2 financial
statements.
D)
After three years, the inventory error will counterbalance.
Which of the following is a CORRECT statement about the
lower-of-cost-or market...
-
Chapter 7 question 1 The following information was taken from the purchasing and inventory records of Charity Company for inventory item #2103BL11: Date Units Cost per Unit 1/01/18 (Beg Inv) 300 $10 4/08/18 150 $11 7/10/18 120 12/03/18 $13 $12 100 A physical inventory count was performed on December 31, 2018. The quantity of inventory counted for item # 2103BL11 was 345. Each unit of inventory is sold for $20 per unit. Using the FIFO and LIFO methods of inventory...
-
#3 and #4
1 pts Question 3 Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on gross profit? gross profit is overstated no effect on gross profit not enough information to know gross profit is understated D Question 4 0.8 pts A company using the periodic system counted 700 units on hand at year-end. The following purchases were make during the first year of operations:...
-
E6A-26 Comparing ending merchandise inventory, cost of goods sold, and gross profit using the periodic inventory system-FIFO, LIFO, and weighted-average methods Assume that Jump Coffee Shop completed the following periodic inventory trans actions for a line of merchandise inventory: g Objective 7 Appendix 6A 2. COGS $513 53A G03 Jun. 1 Beginning merchandise inventory 17 units @ $ 15 each 12 Purchase 5 units @$19 each 20 Sale TO 14 units @$37 each 24 Purchase 11 units @ $ 23...
-
Lea E6-19 Comparing amounts for cost of goods sold, ending inventory, and gross profit-FIFO and LIFO Assume that Toys Galore store bought and sold a line of dolls during December as follows: Dec. 1 Beginning merchandise inventory 8 Sale 14 Purchase 21 Sale 13 units @ $ 9 each 8 units @ $ 22 each 16 units @ $ 14 each 14 units @ $ 22 each Requirements 1. Compute the cost of goods sold, cost of ending merchandise inventory,...
-
Problem 3 (12 pts.): Inventory and cost of goods sold calculations made under the FIFO and LIFO methods of inventory valuation are presented below for ABC Co. This company has a tax rate of 30%. Ending inventory Cost of goods sold FIFO S118.000 $837.000 $955.000 LIFO $ 55.000 $900.000 $955.000 Use the data above to answer the Following Questions. SHOW YOUR WORK. a) Assuming Sales for the company total $3.000.000, calculate the difference in the amount of Gross Profit ABC...
-
show working and solve questions 4 & 5
3. Double-counting an inventory item at year end will result in a. understated tax liability. b. overstated cost of goods sold. overstated net income. understated beginning inventory for the next period. C A retail company has goods available for sale of $300,000 at retail and $210,000 at cost, and ending inventory of $80,000 at retail. What is the estimated cost of goods sold? a. $220,000 b. $154,000 300,000 zlo000 - 80,00 C....
Question 4: complete the following statements: No. statement complete 1 expenses incurred in the process of earning sales revenue (Examples: sales salaries and insurance expense) 2 ..... profit equal Sales Revenue less Cost of Goods Sold 3 .......... Inventory: Detailed records of the cost of each item are maintained, and the cost of each item sold is determined from records when the sale occurs. 4 ......... Inventory: Cost of goods sold is determined only at the end of an accounting...
26. An ventory available. that yields the 21. Physical cons of inventory: 1. Are not necessary under the perpetual system. R. Are meressary to adjust the loventory account to the actual inventory Must be taken at least once a month. D. Requires the use of hand-held portable computers. Are a necessary under the cost to benefit constraint. 22. During a period of steadily rising costs, the inventory valuation method that yields lowest reported net income is: A. Specific identification method....
Chapter 7 question 1 The following information was taken from the purchasing and inventory records of Charity Company for inventory item #2103BL11: Date Units Cost per Unit 1/01/18 (Beg Inv) 300 $10 4/08/18 150 $11 7/10/18 120 12/03/18 $13 $12 100 A physical inventory count was performed on December 31, 2018. The quantity of inventory counted for item # 2103BL11 was 345. Each unit of inventory is sold for $20 per unit. Using the FIFO and LIFO methods of inventory...
#3 and #4
1 pts Question 3 Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on gross profit? gross profit is overstated no effect on gross profit not enough information to know gross profit is understated D Question 4 0.8 pts A company using the periodic system counted 700 units on hand at year-end. The following purchases were make during the first year of operations:...
E6A-26 Comparing ending merchandise inventory, cost of goods sold, and gross profit using the periodic inventory system-FIFO, LIFO, and weighted-average methods Assume that Jump Coffee Shop completed the following periodic inventory trans actions for a line of merchandise inventory: g Objective 7 Appendix 6A 2. COGS $513 53A G03 Jun. 1 Beginning merchandise inventory 17 units @ $ 15 each 12 Purchase 5 units @$19 each 20 Sale TO 14 units @$37 each 24 Purchase 11 units @ $ 23...
Lea E6-19 Comparing amounts for cost of goods sold, ending inventory, and gross profit-FIFO and LIFO Assume that Toys Galore store bought and sold a line of dolls during December as follows: Dec. 1 Beginning merchandise inventory 8 Sale 14 Purchase 21 Sale 13 units @ $ 9 each 8 units @ $ 22 each 16 units @ $ 14 each 14 units @ $ 22 each Requirements 1. Compute the cost of goods sold, cost of ending merchandise inventory,...
Problem 3 (12 pts.): Inventory and cost of goods sold calculations made under the FIFO and LIFO methods of inventory valuation are presented below for ABC Co. This company has a tax rate of 30%. Ending inventory Cost of goods sold FIFO S118.000 $837.000 $955.000 LIFO $ 55.000 $900.000 $955.000 Use the data above to answer the Following Questions. SHOW YOUR WORK. a) Assuming Sales for the company total $3.000.000, calculate the difference in the amount of Gross Profit ABC...
show working and solve questions 4 & 5
3. Double-counting an inventory item at year end will result in a. understated tax liability. b. overstated cost of goods sold. overstated net income. understated beginning inventory for the next period. C A retail company has goods available for sale of $300,000 at retail and $210,000 at cost, and ending inventory of $80,000 at retail. What is the estimated cost of goods sold? a. $220,000 b. $154,000 300,000 zlo000 - 80,00 C....