Question

14. The duties of the purchasing agent would include all of the following except: a. Placing purchase orders b. Counting and identifying materials received c. Compiling information that identifies vendors and prices d. Verifying invoices and approving them for payment 15. A receiving report would include all of the following information except: a. What the shipment contained b. The purchase order number c. The customer d. The date the materials were received 16. The inventory method which results in the most recent cost being assigned to cost of goods sold is: a. First-in, first-out b. Last-in, first-out c. Last-in, last-out d. Moving average 17. The inventory method which results in the most recent cost being assigned inventory on hand at the end of the period is: a. First-in, first-out b. Last-in, first-out c. Last-in, last-out d. Moving average

Answer 1

Solution:

14. The duties of the purchasing agent would include all of the following except:

b. Counting and identifying materials received

Explanation: The receiving clerk is responsible for counting and identifying materials.

15. A receiving report would include all of the following information except:

c. The customer

Explanation : It is unlikely the receiving report would contain the customer name; however, a listing of what the shipment contained, the purchase order number and the date of the receipt would be necessary information used in matching the receiving report to the vendor’s invoice and the purchase order

16. The inventory method which results in more recent cost being asigned to cost of goods sold is:

b. Last-in-First-Out

Explanation: Under Last in First out, all the materials that have been recently purchased has been sold, hence the this the recent cost is included in COGS,

17. The inventory method which results in more recent cost being asigned inventory on hand at the end of period.

a. First in First out

Explanation: Under FIFO, all the goods purchased first is sent out first, hence the goods purchased recently stays in the ending inventory, Hence, the latest cost is attached to the ending inventory.

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