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Whitmore Company identifies the following items 1 Whitmore Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should be included or excluded from the inventory taking. 1. Goods shipped on consignment by Whitmore to another company. 2. Goods in transit from a supplier shipped FOB destination. 3. Goods shipped via common carrier to a customer with terms FOB shipping point. ...

Other / Other 02 Apr 2016

Sawyer Company uses the perpetual inventory system 1. A new average cost is computed each time a purchase is made in the a. average-cost method. b. moving-average cost method. c. weighted-average cost method. d. all of these methods. 2. When valuing ending inventory under a perpetual inventory system, the a. valuation using the average-cost assumption is the same as the valuation using the average-cost assumption under the periodi ...

Other / Other 02 Apr 2016

Tucker Department Store utilizes the retail inventory method 1. Under the gross profit method, each of the following items are estimated except for the a. cost of ending inventory. b. cost of goods sold. c. cost of goods purchased. d. gross profit. 2. Under the retail inventory method, the estimated cost of ending inventory is computed by multiplying the cost-to-retail ratio by a. net sales. b. goods available for sale at reta ...

Other / Other 02 Apr 2016

Oakley Supply Company reports net income 1 The Entertainment Center accumulates the following cost and market data (in 000) at December 31. Inventory Categories Cost Data Market Data Camera ¥11,000 ¥10,200 Camcorders 8,000 8,500 DVDs 14,000 13,000 What is the lower-of-cost-or-net realizable value of the inventory? Solution 1 (5 min.) Lower-of-cost- Inventory Categories Cost Data Market Data or-net realizable value ...

Other / Other 02 Apr 2016

Widner Company understated its inventory 1. Paulson, Inc. has 5 computers which have been part of the inventory for over two years. Each computer cost ₤600 and originally retailed for ₤825. At the statement date, each computer has a net realizable value of ₤350. What value should Paulson, Inc., have for the computers at the end of the year? a. ₤1,250. b. ₤1,750. c. ₤3,000. d. $4,125. 2. Paul ...

Other / Other 02 Apr 2016

Graham Company uses a periodic inventory 1. The cost of goods available for sale is allocated to the cost of goods sold and the a. beginning inventory. b. ending inventory. c. cost of goods purchased. d. gross profit. 2. At May 1, 2011, Deitrich Company had beginning inventory consisting of 100 units with a unit cost of €3.50. During May, the company purchased inventory as follows: 200 units at €3.50 300 units at ââ ...

Other / Other 02 Apr 2016

What is Queen’s cost of goods available 1. Keiko Company took a physical inventory at December 31, 2010 and determined that ¥3,030,000 of goods were on hand. In addition, the company had goods consigned with Chang Company that had a cost of ¥700,000. On December 29, Keiko sold and shipped f.o.b. shipping point ¥600,000 worth of inventory. These goods arrived at the buyer’s place of business on January 4, 2011. What ...

Other / Other 02 Apr 2016

The major difference between IFRS and GAAP Use the following information to answer of questions 1 and 2. India Eastern Corporation’s computation of cost of goods sold is: Beginning inventory Rs10,960,000 Add: Cost of goods purchased 40,405,000 Cost of goods available for sale 51,365,000 Ending inventory 10,320,000 Cost of goods sold Rs41,045,000 1. India East’s inventory turnover ...

Other / Other 02 Apr 2016

The accountant at Paige Company is figuring out the difference in income taxes 1. In periods of rising prices, the inventory method which results in the inventory value on the statement of financial position that is closest to current cost is the a. FIFO method. b. specific identification method. c. average-cost method. d. tax method. 2. If companies have identical inventory costs but use different inventory flow assumptions when th ...

Other / Other 02 Apr 2016

Manufacturers usually classify inventory 1. If goods in transit are shipped FOB destination a. the seller has legal title to the goods until they are delivered. b. the buyer has legal title to the goods until they are delivered. c. the transportation company has legal title to the goods while the goods are in transit. d. no one has legal title to the goods until they are delivered. 2. An auto manufacturer would classify vehicles in va ...

Other / Other 02 Apr 2016