Post-Test
Post-Test
(See related pages)

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