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| 1 | |
A periodic inventory system requires a physical count of its inventory once a month. |
| | A) | True |
| | B) | False |
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| 2 | |
The specific identification method is able to identify in the ending inventory the actual invoice cost associated with it. |
| | A) | True |
| | B) | False |
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| 3 | |
In FIFO the most recent cost is assigned to the inventory sold. |
| | A) | True |
| | B) | False |
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| 4 | |
LIFO doesn't always match physical flow of goods but can still be used to calculate flow of costs. |
| | A) | True |
| | B) | False |
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| 5 | |
Inventory turnover at cost is net sales divided by average inventory at retail. |
| | A) | True |
| | B) | False |
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| 6 | |
In specific identification which one is not true: |
| | A) | The specific purchase invoice prices are used |
| | B) | Flow of goods and flow of cost are the same |
| | C) | Ending inventory is associated with specific purchase prices |
| | D) | Low cost items are often used in this method |
| | E) | None of the above |
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| 7 | |
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 |
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| 8 | |
All but which one of the following is needed information to calculate inventory valuation by the retail method: |
| | A) | Beginning inventory at cost and retail |
| | B) | Cost of net purchases at cost and retail |
| | C) | Net sales at cost |
| | D) | Net sales at retail |
| | E) | None of the above |
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| 9 | |
In the retail method the ending inventory at cost is calculated by multiplying the cost ratio times: |
| | A) | Beginning inventory at retail |
| | B) | Ending inventory at retail |
| | C) | Cost of goods available for sale |
| | D) | Net sales for the month |
| | E) | None of the above |
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| 10 | |
Inventory turnover at retail is equal to net sales divided by: |
| | A) | Beginning inventory at retail |
| | B) | Average inventory at retail |
| | C) | Beginning inventory at cost |
| | D) | Average inventory at cost |
| | E) | None of the above |
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| 11 | |
Given: Net sales $35,000, beginning inventory at retail $12,000, ending inventory at retail $16,000, cost of goods sold $18,500. The inventory turnover at retail is: |
| | A) | 2.9 |
| | B) | 2.5 |
| | C) | 1.3 |
| | D) | 1.2 |
| | E) | None of the above |
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| 12 | |
Given: Beginning inventory at cost $8,000, ending inventory at cost $7,800, net sales $42,000, cost of goods sold $28,000. The inventory turnover at cost to nearest hundredth is: |
| | A) | 2.7 |
| | B) | 2.65 |
| | C) | 1.5 |
| | D) | 1.77 |
| | E) | None of the above |
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| 13 | |
Given: Dept. A 6,000 sq. ft., Dept. B 3,000 sq. ft. and Dept. C 1,000 sq. ft. The percent of overhead expense applied to Dept. C will be: |
| | A) | 60 percent |
| | B) | 30 percent |
| | C) | 10 percent |
| | D) | 40 percent |
| | E) | None of the above |
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| 14 | |
Jones Co. uses the retail inventory method. Given the following the ending inventory at cost is: Sales at retail $70,000, Net purchases at cost $39,500, Net purchases at retail $65,500, Beginning inventory at cost $20,500, beginning inventory at retail $34,500. |
| | A) | $30,000 |
| | B) | $18,000 |
| | C) | $60,000 |
| | D) | $12,000 |
| | E) | None of the above |
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| 15 | |
Allison Co. has a beginning inventory costing $90,000 and an ending inventory costing $120,000. Sales were $380,000. Assume Allison's markup rate is 40 percent. Based on the selling price the inventory turnover at cost (to nearest hundredth) is: |
| | A) | 2.17 |
| | B) | 2.22 |
| | C) | 1.47 |
| | D) | 1.58 |
| | E) | None of the above |
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