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What amount should Lawson report as inventories in its statement 1. Morgan Manufacturing Company has the following account balances at year end: Office supplies $ 4,000 Raw materials 27,000 Work-in-process 59,000 Finished goods 72,000 Prepaid insurance 6,000 What amount should Morgan report as inventories in its statement of financial position? a. $72,000. b. $76,000. c. $158,000. d. $162,000. 2. Lawson Manufacturing Compan ...

Other / Other 06 May 2016

Valuation of inventories requires the deter¬mination of all of the following except 1. Valuation of inventories requires the deter¬mination of all of the following except a. the costs to be included in inventory. b. the physical goods to be included in inventory. c. the cost of goods held on consign¬ment from other companies. d. the cost flow assumption to be adopted. 2. The accountant for the Pryor Sales Company is prep ...

Other / Other 06 May 2016

What is the cost of the ending inventory Ex. 1—Comparison of FIFO and Average Cost. During periods of rising prices, the use of FIFO (as compared with average cost) will result in what effect on the financial statements? Ex. 2—FIFO and Average Cost inventory methods. During June, the following changes in inventory item 27 took place: June 1 Balance 1,400 units @ $24 14 Purchased 900 units @ $36 24 Purchased 70 ...

Other / Other 06 May 2016

Interest costs incurred to manufacture large quantities of inventory TRUE OR FALSE: 1. Purchase Discounts Lost is a financial expense and is reported in the “other income and expense” section of the income statement. 2. Interest costs incurred to manufacture large quantities of inventory that are produced routinely should be capitalized. 3. A trade discount that is granted as an incentive for a first-time customer or ...

Other / Other 06 May 2016

A record of transactions for the month of May *Ex. 1—Perpetual LIFO. A record of transactions for the month of May was as follows: Purchases Sales May 1 (balance) 400 @ $4.20 May 3 300 @ $7.00 4 1,300 @ $4.10 6 1,000 @ 7.00 8 800 @ $4.30 12 900 @ 7.50 14 700 @ $4.40 18 400 @ 7.50 22 1,200 @ $4.50 25 1,400 @ 8.00 29 500 @ $4.55 Assuming that perpetual inventory records are k ...

Other / Other 06 May 2016

Culver Company purchases the majority of its inventory 1. Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer? a. Raw materials. b. Work-in-process. c. Finished goods. d. Supplies. 2. Where should raw materials be classified on the statement of financial position? a. Prepaid expenses. b. Inventory. c. Equipment. d. Not on the statement of financial position. 3. W ...

Other / Other 06 May 2016

An inventory pricing procedure in which the oldest costs incurred 1. An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is a. FIFO. b. LIFO. c. specific identification. d. weighted-average. 2. Which method of inventory pricing best approximates specific identification of the actual flow of costs and units in most manufacturing situations? a. Average cost b. ...

Other / Other 06 May 2016

The value assigned to ending inventory if Niles uses LIFO is Use the following information for questions 1 and 2. Winsor Co. records purchases at net amounts. On May 5 Winsor purchased merchandise on account, $16,000, terms 2/10, n/30. Winsor returned $1,200 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid. 1. The amount to be recorded as a purchase return is a. $1,080. b. $1,224. c. $1,2 ...

Other / Other 06 May 2016

What amount should White report as Cost of Goods Sold 1. Chess Top uses the periodic inventory system. For the current month, the beginning inventory consisted of 200 units that cost $65 each. During the month, the company made two purchases: 300 units at $68 each and 150 units at $70 each. Chess Top also sold 500 units during the month. Using the LIFO method, what is the amount of cost of goods sold for the month? a. $33,770. b. $32,500. ...

Other / Other 06 May 2016

Which of the following is included in inventory costs 1. Computers For You is a retailer specializing in selling computers and related equipment. During 2011, Computers For You sells $200,000 of merchandise to Sandcastles, Inc. Computers For You incurs $24,000 of freight costs associated with these sales. Which of the following is true regarding how this $24,000 is treated on the financial statements? a. Computers For You will report the ...

Other / Other 06 May 2016