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| 1 | |
Due to computer use, perpetual inventory is decreasing. |
| | A) | True |
| | B) | False |
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| 2 | |
The original price of an item can be identified in the specific identification method. |
| | A) | True |
| | B) | False |
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| 3 | |
FIFO means the new goods are sold first. |
| | A) | True |
| | B) | False |
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| 4 | |
LIFO means the newest goods are sold first. |
| | A) | True |
| | B) | False |
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| 5 | |
Inventory turnover at retail is net sales divided by average inventory at cost. |
| | A) | True |
| | B) | False |
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| 6 | |
Just-in-time inventory: |
| | A) | Is based on FIFO |
| | B) | Is based on LIFO |
| | C) | Monitors inventory yearly |
| | D) | Monitors inventory levels daily |
| | E) | None of the above |
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| 7 | |
The weighted-average method: |
| | A) | Sell the old inventory first |
| | B) | Recent cost assigned to inventory not sold |
| | C) | Calculates an average unit price |
| | D) | Cost flow tends to follow physical flow |
| | E) | None of the above |
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| 8 | |
The cost ratio is used in: |
| | A) | FIFO |
| | B) | LIFO |
| | C) | Retail method |
| | D) | Specific Identification |
| | E) | None of the above |
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| 9 | |
In the retail method the ending inventory at retail is calculated by: |
| | A) | Retail net sales |
| | B) | Cost ratio multiplied by the ending inventory at retail |
| | C) | Beginning inventory at retail |
| | D) | Net sales |
| | E) | None of the above |
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| 10 | |
Inventory turnover at cost is equal to cost of goods sold divided by: |
| | A) | Beginning inventory at retail |
| | B) | Average inventory at cost |
| | C) | Beginning inventory at retail |
| | D) | Average inventory at cost and retail |
| | E) | None of the above |
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| 11 | |
Given: Net sales $40,000, beginning inventory at retail $11,000, ending inventory at retail $17,000, cost of goods sold $19,000. The inventory turnover at retail to the nearest tenth is: |
| | A) | 2.7 |
| | B) | 2.9 |
| | C) | 2.5 |
| | D) | 3.6 |
| | E) | None of the above |
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| 12 | |
Given: Beginning inventory at cost $9,000, ending inventory at cost $7,500, net sales $45,000, cost of goods sold $29,000. The inventory turnover at cost to the nearest tenth is: |
| | A) | 2.5 |
| | B) | 2.8 |
| | C) | 2.9 |
| | D) | 3.4 |
| | E) | None of the above |
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| 13 | |
Given: Dept. A 8,000 sq. ft., Dept. B 4,000 sq. ft., and Dept C 3,000 sq. ft. The percent of overhead expense applied to Dept C will be: |
| | A) | 26.67 percent |
| | B) | 53.33 percent |
| | C) | 20.00 percent |
| | D) | 30.00 percent |
| | E) | None of the above |
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| 14 | |
Angel Co. used the retail inventory method. Given the following the ending inventory at cost is: Sales at retail $80,000, Net purchases at cost $40,000, Net purchases at retail $75,000, Beginning inventory at cost $22,000, Beginning inventory at retail $35,000. Round the cost ratio to the nearest whole percent. |
| | A) | $30,000 |
| | B) | $16,800 |
| | C) | $18,600 |
| | D) | $33,000 |
| | E) | None of the above |
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| 15 | |
June Co. has a beginning inventory costing $100,000 and an ending inventory costing $125,000. Sales were $400,000. Assume June's markup rate is 35 percent. Based on the selling price the inventory turnover at cost (to nearest hundredth) is: |
| | A) | 2.31 |
| | B) | 1.24 |
| | C) | 1.42 |
| | D) | 2.13 |
| | E) | None of the above |
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