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Exam 6: Inventories Periodic Approach

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Question 21

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The following information was available for Pete Company at December 31, 2018: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $984,000; and sales $1,350,000. Pete's inventory turnover in 2018 was

A) 10.9 times.
B) 12.3 times.
C) 14.1 times.
D) 16.9 times.

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Question 22

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A company may use more than one inventory costing method concurrently.

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Question 23

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Netta Shutters has the following inventory information. A physical count of merchandise inventory on November 30 reveals that there are 90 units on hand. Assume a periodic inventory system is used. Assuming that the specific identification method is used and that ending inventory consists of 20 units from each of the three purchases and 30 units from the November 1 inventory, cost of goods sold is

Romanoff Industries had the following inventory transactions occur during 2018: The company sold 150 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars)

Moroni Industries has the following inventory information. Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a LIFO basis?

Inventory is reported in the financial statements at

If the unit price of inventory is increasing during a period, a company using the LIFO inventory method will show less gross profit for the period, than if it had used the FIFO inventory method.

If beginning inventory is understated by $13,000, the effect of this error in the current period is

GAAP's definition for inventory and provision of guidelines for inventory accounting, as compared to IFRS are: IFRS:

Inventory items on an assembly line in various stages of production are classified as

Fetherston Company's goods in transit at December 31 include: Sales made purchases made (1) FOB destination (3) FOB destination (2) FOB shipping point (4) FOB shipping point Which items should be included in Fetherston's inventory at December 31?

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2018 are as follows: An end of the month (1/31/18) inventory showed that 160 units were on hand. If the company uses FIFO, what is the value of the ending inventory?

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2018 are as follows: An end of the month (1/31/18) inventory showed that 160 units were on hand. How many units did the company sell during January, 2018?

The specific identification method of costing inventories tracks the actual physical flow of the goods available for sale.

Eneri Company's inventory records show the following data: A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. Under the FIFO method, the December 31 inventory is valued at

Manufacturers usually classify inventory into all the following general categories except

Compute the lower-of-cost-or-net realizable value valuation for Gantner Company's total inventory based on the following:

Wellington Company reported net income of $60,000 in 2017 and $80,000 in 2018. However, ending inventory was overstated by $7,000 in 2017. Instructions Compute the correct net income for Wellington Company for 2017 and 2018.

Errors occasionally occur when physically counting inventory items on hand. Identify the financial statement effects of an overstatement of the ending inventory in the current period. If the error is not corrected, how does it affect the financial statements for the following year?

For companies that use a perpetual inventory system, all of the following are purposes for taking a physical inventory except