Homework Answers
C. LIFO
LIFO is a method used to account for inventory costs, where the most recently produced items are recorded as sold first..
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C debit Merchandise Invencory D debit Accounts Payable; credit Merchandise Inventory 13. MC.06-60 The inventory method...
Which inventory costing method results in the lowest ending inventory during a period of rising merchandise...
Which inventory costing method results in the lowest ending inventory during a period of rising merchandise inventory cost? a.) Weighted-average b.) Specific identification c.) First-in, first-out (FIFO) d.) Last-in, first-out (LIFO)
1. Which of the following inventories carried by a manufacturer is similar to the merchandise inventory...
1. Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer? Raw materials. Work-in-process. Finished goods. d. Supplies. b. 2. Where should raw materials be classified on the statement of financial position? Prepaid expenses. b. Inventory. Equipment. Not on the statement of financial position. d. Which of the following accounts is not reported in inventory? a. Raw materials. b. Equipment. c. Finished goods. d. Supplies 4. In a period of rising prices,...
True or False Unsold consigned merchandise should be included in the consignee’s inventory. If ending inventory...
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...
Identify the inventory costing method best described by each of the following separate statements. Assume a...
Identify the inventory costing method best described by each of the following separate statements. Assume a period of increasing costs 1. Assigns the lowest amount to cost of goods sold 2. Mimics the actual flow of inventory. 3. |Yields the lowest gross profit. 4. Tends to smooth out the erratic changes in costs. 5. Matches the cost of items exactly with the revenues they generate. FIFO Specific identification Weighted average LIFO
Please complete all of P6-29A 06-29A Accounting for inventory using the perpetual inventory system-FIFO, LIFO, and...
Please complete all of P6-29A
06-29A Accounting for inventory using the perpetual inventory system-FIFO, LIFO, and weighted average, and comparing FIFO, LIFO, and weighted-average Iron Man began August with 65 units of iron inventory that cost $30 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sale Price Sale 50 $ 81 $ 50 Aug. 3 8 21 30 Purchase Sale Purchase 80 Requirements 1. Prepare a perpetual inventory record for the merchandise inventory using...
Match each description to the appropriate cost flow assumption (a-c). a. FIFO b. LIFO c. Weighted...
Match each description to the appropriate cost flow assumption (a-c). a. FIFO b. LIFO c. Weighted average 5. Produces the same cost of merchandise sold under both the periodic and the perpetual inventory system 6. Rarely used with a perpetual inventory system 7. Produces results that are similar to the specific identification method 8. Widely used for tax purposes 9. Never results in either the highest or lowest possible net income 10. Produces the highest gross profit when costs are...
Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and...
Compute the cost assigned to ending inventory using (a) FIFO,
(b) LIFO, (c) weighted average, and (d) specific identification.
For specific identification, units sold consist of 600 units from
beginning inventory, 380 from the February 10 purchase, 120 from
the March 13 purchase, 130 from the August 21 purchase, and 205
from the September 5 purchase. (Round your average cost per unit to
2 decimal places.)
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases...
8. Which of the following accounts has a normal debit balance? a. Accounts Payable b. Sales...
8. Which of the following accounts has a normal debit balance? a. Accounts Payable b. Sales Returns and Allowances c. Sales d. Interest Revenue 9. Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a a. debit to Sales b. debit to Merchandise Inventory c. credit to Merchandise Inventory d. credit to Sales 10. A retailer purchases merchandise with a catalog list price of $15,000. The retailer receives a 30%...
15. If merchandise is sold on account to a customer for $4,000, terms FOB shipping point,...
15. If merchandise is sold on account to a customer for $4,000, terms FOB shipping point, 1/10, n/30, under perpetual system, the amount credited to the Sales Revenue account would be a. $4,000 b. $3,960 e. 53,600 d. $40 16. Cost of goods sold if found by using the cost of newest items when a company uses: a LIFO b FIFO c Weighted average cost d. Specific identification 17. In a period of inflation (unit prices rising over time), which...
Which of the following inventory valuation method produces values that most closely reflect inventory sold and...
Which of the following inventory valuation method produces values that most closely reflect inventory sold and remaining? Select one: a. Specific Identification method b. Perpetual LIFO method c. Periodic LIFO method d. Periodic FIFO method e. Moving Average method
1. Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer? Raw materials. Work-in-process. Finished goods. d. Supplies. b. 2. Where should raw materials be classified on the statement of financial position? Prepaid expenses. b. Inventory. Equipment. Not on the statement of financial position. d. Which of the following accounts is not reported in inventory? a. Raw materials. b. Equipment. c. Finished goods. d. Supplies 4. In a period of rising prices,...
Identify the inventory costing method best described by each of the following separate statements. Assume a period of increasing costs 1. Assigns the lowest amount to cost of goods sold 2. Mimics the actual flow of inventory. 3. |Yields the lowest gross profit. 4. Tends to smooth out the erratic changes in costs. 5. Matches the cost of items exactly with the revenues they generate. FIFO Specific identification Weighted average LIFO
Please complete all of P6-29A
06-29A Accounting for inventory using the perpetual inventory system-FIFO, LIFO, and weighted average, and comparing FIFO, LIFO, and weighted-average Iron Man began August with 65 units of iron inventory that cost $30 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sale Price Sale 50 $ 81 $ 50 Aug. 3 8 21 30 Purchase Sale Purchase 80 Requirements 1. Prepare a perpetual inventory record for the merchandise inventory using...
Match each description to the appropriate cost flow assumption (a-c). a. FIFO b. LIFO c. Weighted average 5. Produces the same cost of merchandise sold under both the periodic and the perpetual inventory system 6. Rarely used with a perpetual inventory system 7. Produces results that are similar to the specific identification method 8. Widely used for tax purposes 9. Never results in either the highest or lowest possible net income 10. Produces the highest gross profit when costs are...
Compute the cost assigned to ending inventory using (a) FIFO,
(b) LIFO, (c) weighted average, and (d) specific identification.
For specific identification, units sold consist of 600 units from
beginning inventory, 380 from the February 10 purchase, 120 from
the March 13 purchase, 130 from the August 21 purchase, and 205
from the September 5 purchase. (Round your average cost per unit to
2 decimal places.)
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases...
8. Which of the following accounts has a normal debit balance? a. Accounts Payable b. Sales Returns and Allowances c. Sales d. Interest Revenue 9. Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a a. debit to Sales b. debit to Merchandise Inventory c. credit to Merchandise Inventory d. credit to Sales 10. A retailer purchases merchandise with a catalog list price of $15,000. The retailer receives a 30%...
15. If merchandise is sold on account to a customer for $4,000, terms FOB shipping point, 1/10, n/30, under perpetual system, the amount credited to the Sales Revenue account would be a. $4,000 b. $3,960 e. 53,600 d. $40 16. Cost of goods sold if found by using the cost of newest items when a company uses: a LIFO b FIFO c Weighted average cost d. Specific identification 17. In a period of inflation (unit prices rising over time), which...
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