 |
| 1 | |
A perpetual inventory system continually updates inventory records. |
| | A) | True |
| | B) | False |
|
|
|
| 2 | |
A periodic inventory system requires a physical count of its inventory once a month. |
| | A) | True |
| | B) | False |
|
|
|
| 3 | |
In valuing inventory, the flow of costs does not always match the flow of goods. |
| | A) | True |
| | B) | False |
|
|
|
| 4 | |
In FIFO the most recent cost is assigned to the inventory sold. |
| | A) | True |
| | B) | False |
|
|
|
| 5 | |
LIFO doesn't always match physical flow of goods but can still be used to calculate flow of costs. |
| | A) | True |
| | B) | False |
|
|
|
| 6 | |
A cost ratio of $.68 means that for each $1 of retail inventory it costs the store $.68. |
| | A) | True |
| | B) | False |
|
|
|
| 7 | |
Perpetual inventory does not have this characteristic: |
| | A) | High priced, limited inventory |
| | B) | Verified at some point by a physical count |
| | C) | Low price, large inventory |
| | D) | Utilizes scanners, computers, etc. |
| | E) | None of the above |
|
|
|
| 8 | |
Cost of goods sold is equal to cost of goods available for sale: |
| | A) | Plus cost of ending inventory |
| | B) | Less cost of ending inventory |
| | C) | Divided by cost of ending inventory |
| | D) | Multiplied by cost of ending inventory |
| | E) | None of the above |
|
|
|
| 9 | |
FIFO assumes all but one of the following: |
| | A) | Sell the old inventory first |
| | B) | Recent cost assigned to inventory not sold |
| | C) | Sell the new inventory first |
| | D) | Cost flow tends to follow physical flow |
| | E) | None of the above |
|
|
|
| 10 | |
The cost ratio in the retail method is found by the cost of goods available for sale at cost divided by: |
| | A) | Net sales |
| | B) | Ending inventory at retail |
| | C) | Cost of goods available for sale at retail |
| | D) | Net purchases at cost |
| | E) | None of the above |
|
|
|
| 11 | |
Given: Net sales $40,000, beginning inventory at retail $14,000, ending inventory at retail $20,000, cost of goods sold $19,500. The inventory turnover at retail is (To the nearest hundredth) |
| | A) | 5.15 |
| | B) | 3.25 |
| | C) | 2.35 |
| | D) | 5.23 |
| | E) | None of the above |
|
|
|
| 12 | |
Given: Dept. A sales of $200,000, Dept. B sales of $600,000; overhead expense to be allocated $25,000; the distribution of overhead to Dept. A based on sales is: |
| | A) | $18,750 |
| | B) | $25,000 |
| | C) | $ 2,600 |
| | D) | $ 6,250 |
| | E) | None of the above |
|
|
|
| 13 | |
Given the following:
FIFO method – 16 units left in inventory | Jan. 1 | Beginning inv | 9 units at $105 = $945 | | Apr. 13 | Purchased | 14 units at $120 = $1,68 | | Sep. 17 | Purchased | 20 units at $130 = $2,600 | | Dec. 10 | Purchased | 14 units at $140 = $1,960 |
The cost of goods sold is: |
| | A) | $5,000 |
| | B) | $10,000 |
| | C) | $4,965 |
| | D) | $5,225 |
| | E) | None of the above |
|
|
.