Question Details

Goods in transit should be included in the inventory 


1.	Versace Company, an Italian subsidiary of a US company, uses the periodic inventory system. At November 1, the beginning inventory consisted of 1,200 units that cost €120 each. During the month, the company made two purchases: 500 units at €130 each and 2,000 units at €135 each. Versace sold 2,150 units during November. Using the LIFO cost flow assumption, what is the ending inventory?
a.	€186,000.
b.	€189,500.
c.	€200,730.
d.	€209,250.

2.	East Asia Inc., Hong Kong subsidiary of a US company, uses the periodic inventory system. At April 1, the inventory consisted of 200 units that cost HK$650 each. During the month, the company made two purchases: 300 units at HK$680 each and 150 units at HK$700 each. East Asia also sold 500 units during the month. Using the LIFO cost flow assumption, what is the amount of cost of goods sold for the month?
a.	HK$325,000.
b.	HK$334,000.
c.	HK$337,700.
d.	HK$341,500.

3.	Bordeaux Corp., a French subsidiary of a US company, sells one product and uses a perpetual inventory system. The beginning the inventory consisted of 10 units that cost €2,000 per unit. During the current month, the company purchased: 60 units at €2,100 each. Sales during the month totaled 45 units for €4,350 each. What is the cost of goods sold using the LIFO cost flow assumption?
a.	€90,000.
b.	€93,500.
c.	€94,500.
d.	€95,750.

4.	Taj Mahal Inc. uses the periodic inventory system and FIFO costing. For the year ending December 31, 2011, the company- cost of goods sold was Rs20,670,000. Had the LIFO cost flow assumption been used, cost of goods sold would have been Rs21,344,000. Assuming a 25% tax rate, what would be the tax savings if Taj Mahal were allowed to use LIFO?
a.	Rs0.
b.	Rs168,500.
c.	Rs674,000.
d.	cannot be determined from the information given.

5.	Goods in transit should be included in the inventory of the buyer when the
a.	public carrier accepts the goods from the seller.
b.	goods reach the buyer.
c.	terms of sale are FOB destination.
d.	terms of sale are FOB shipping point.





Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help