Inventory is defined as goods held for resale in the ordinary course of business. Which of the following would not be included in inventory for any type of business. Show In performing a stocktake care must be taken with goods in transit. Which of these statements is true? A.Stock on consignment is regarded as sold by the consignor B.Stock on consignment is not included in the stock of the consignor C.Goods in transit should be included in both the purchasers and the seller's inventory D.Sales invoices for two weeks after the end of the accounting period should be reviewed to identify goods in transit 3.The accounting standard that deals with inventories is: 4.Moon uses a periodic inventory system with the specific identification method of cost assignment. The following data are available: The value of closing inventory at 31 January is: 5.The statement that is correct is: A.LIFO assumes the last goods purchased are the first goods sold B.LIFO assumes the first goods purchased are the first goods sold C.LIFO assumes that cost of sales consists of the oldest purchases D.LIFO assumes that stock at end consists of the most recent purchases 6.Moon uses a periodic inventory system with the weighted average method of cost assignment. The following data are available: What is the value of cost of sales for January? 7.For which of these would the specific identification method of costing inventory be unsuitable? D.Petrol at a service station 8.Moon uses a periodic inventory system with the specific identification method of cost assignment. The following data are available: DateUnitsUnit CostJan6Beginning inventory15Purchase26Purchase31Sale from the 15 January purchaseClosing inventoryWhat is the value of cost of sales for January? 9.Moon uses a periodic inventory system with the last-in first-out method of cost assignment. The following data are available: DateUnitsUnit CostJan6Beginning inventory15Purchase26Purchase31Sale from the 15 January purchaseClosing inventoryWhat is the value of closing inventory at 31 January? 10.If inventory costs are rising which method gives the highest profit? Which of these is an advantage of the weighted average method of applying costs to inventory? A.It is not subject to profit manipulation B.The profit and closing inventory values tend to be 'smoothed' compared to other methods C.It is simple to understand 12.The statement concerning the perpetual inventory method that is incorrect is: A.A stocktake is required to estimate cost of sales B.A continuous record is kept of all movements in inventory C.With the increased use of computers it has become the most common system D.Cost of sales is calculated for each transaction 13.The average cost of AD computer modems on 30 March, as per the stock card, is $21.06. If 200 modems are sold at $24.00 each, what is the cost of the modems charged to the income statement, assuming the weighted average method of costing is used? 14.The essence of the perpetual method of accounting for inventory is: A.All movements in each item of stock are tracked via detailed inventory records C.Cost of sales is calculated at the end of the accounting period D.It is useful for high value, low volume items 15.The stock of AD computer modems at 20 March, as per the stock card, is 1 010 units which cost, in total, $20 800. If a purchase of 500 modems is made for $11 000, what is the average cost of the modems after the purchase? Assuming rising prices, which of the following statements is correct? A.FIFO reports a lower value for COGS than other methods B.FIFO reports a higher value for COGS than other methods C.FIFO reports a lower value for closing inventory than other methods 17.Net realisable value in relation to inventory is: A.Estimate selling price less stock loss B.Estimated discounted value C.Estimated replacement value D.Estimated selling price less anticipated further costs to complete the sale 18.The statement that is untrue is: A.Inventory is normally valued at cost B.In certain circumstances some inventory items will be valued at below cost C.In certain circumstances some inventory items will be valued at above cost D.Net realisable value is related to estimated market value 19.Which of these are reasons for the selling value of some inventory items falling below their cost price? A rise in the market price Which of these is not a possible source of error in calculating closing inventory? A.An incorrect cut off between accounting periods B.Mistakes in counting during the stocktake C.Mistakes in the price at which the goods are sold to customers D.None of the above, i.e. all are possible sources of errors 21.If Carmel knows that the ending inventory at retail for her corner store is $16 000 and her cost to retail percentage is 65%, her ending inventory at cost can be estimated as: 22.Won Ltd has a historical gross profit percentage of 35%. Net purchases for six months were $1 400 and sales $2 000. Inventory at the end of the previous period was $200. If Won Ltd prepares an interim balance sheet the amount that can be estimated for closing inventory is: 23.Liquidator Lounges' showroom was flooded and its inventory was totally destroyed. Its accounting records were damaged but the following information was salvaged: Which of the following information concerning inventory is not required to be disclosed in external financial reports? D.Method of valuation, eg. FIFO, weighted average 25.The formula, cost of sales/average inventory, measures: B.The number of times, on average, that inventory is turned over per year C.The mark-up on inventory expressed as a percentage of the cost price This is the end of the test. When you have completed all the questions and reviewed your answers, press the button below to grade the test. Which of the following is not part of inventory retail method of inventory valuation is?The retail inventory method calculates the ending inventory value by totaling the value of goods that are available for sale, which includes beginning inventory and any new purchases of inventory. Total sales for the period are subtracted from goods available for sale.
Which of the following is true regarding the retail inventory method?Which statement is true about the retail inventory method? The LIFO retail method assumes that markups and markdowns apply only to the goods purchased during the period.
What is the importance of retail inventory method?RIM is an averaging technique used by retailers to reduce the amount of recordkeeping associated with accounting for inventories. In general terms, RIM allows retailers to compute an average cost-to-retail percentage (commonly referred to as a cost complement percentage) used to value ending inventories.
Which of the following is a major advantage of using the retail inventory method?An advantage of the retail inventory method is that it does not require a physical inventory.
|
Which of the following is not required when using the retail inventory method
zusammenhängende Posts
Urheberrechte © © 2024 nguoilontuoi Inc.
