Chapter 9-Inventories Additional Valuation Issues-LO 4&5-Comput

Chapter 9-Inventories Additional Valuation Issues-LO 4&5-Comput

University

17 Qs

quiz-placeholder

Similar activities

PAS 7 SCF

PAS 7 SCF

University

17 Qs

Accounting for Inventories

Accounting for Inventories

University

15 Qs

AS Accounting Revision Quiz 3

AS Accounting Revision Quiz 3

12th Grade - University

21 Qs

Chapter 2_Quiz_MA (DBS)

Chapter 2_Quiz_MA (DBS)

University

15 Qs

IAS 36 - IMPAIRMENT OF ASSETS

IAS 36 - IMPAIRMENT OF ASSETS

University

14 Qs

Chapter 9 - Inventories Additional Valuation Issues-LO 3-Comput

Chapter 9 - Inventories Additional Valuation Issues-LO 3-Comput

University

16 Qs

BASIC FINAL ACCOUNTS

BASIC FINAL ACCOUNTS

University

15 Qs

Inventories - Preliminary Considerations

Inventories - Preliminary Considerations

University

20 Qs

Chapter 9-Inventories Additional Valuation Issues-LO 4&5-Comput

Chapter 9-Inventories Additional Valuation Issues-LO 4&5-Comput

Assessment

Quiz

Business

University

Hard

Created by

Imran Manzoor

FREE Resource

17 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Dicer uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were £130,000 (£198,000), purchases during the current year at cost (retail) were £685,000 (£1,100,000), freight-in on these purchases totaled £43,000, sales during the current year totaled £1,050,000, and net markups (markdowns) were £24,000 (£36,000). What is the ending inventory value at cost?

£153,164.

£156,165.

£157,412.

£236,000.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Boxer Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were 65,500 (99,000), purchases during the current year at cost (retail) were 568,000 (865,600), freight-in on these purchases totaled 26,500, sales during the current year totaled 811,000, and net markups were 69,000. What is the ending inventory value at cost?

€222,600.

€174,366.

€142,241.

€152,308.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Barker Pet Supply uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were 265,600 (326,900), purchases during the current year at cost (retail) were 1,068,600 (1,386,100), freight-in on these purchases totaled 63,900, sales during the current year totaled 1,302,000, and net markups (markdowns) were 2,000 (96,300). What is the ending inventory value at cost?

€316,700.

€258,111.

€411,000.

€246,667.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year:

                                                             Cost          Retail 

Beginning inventory                               £  30,000       £  50,000

Purchases                                              145,000           200,000

Freight-in                                                   2,500           —  

Net markups                                                  —                        8,500

Net markdowns                                             —                      10,000

Employee discounts                                      —                        1,000

Sales                                                              —                    205,000

If the ending inventory is to be valued at the lower-of-cost-or-net realizable value, what is the cost to retail ratio?

£177,500 ÷ £250,000

£177,500 ÷ £258,500

£175,000 ÷ £260,000

£177,500 ÷ £248,500

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The following data concerning the retail inventory method are taken from the financial records of Welch Company.

                                                                                          Cost                       Retail 

            Beginning inventory                                           €  49,000               €  70,000

            Purchases                                                           224,000                 320,000

            Freight-in                                                                 6,000                       —

            Net markups                                                               —                      20,000

            Net markdowns                                                          —                      14,000

            Sales                                                                          —                    336,000

 

            The ending inventory at retail should be

€74,000.

€60,000.

€64,000.

€42,000.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The following data concerning the retail inventory method are taken from the financial records of Welch Company.

                                                            Cost                       Retail 

Beginning inventory                       €  49,000               €  70,000

Purchases                                          224,000                 320,000

Freight-in                                          6,000                       —

Net markups                                       —                      20,000

Net markdowns                                   —                      14,000

Sales                                                       —                    336,000 

            If the ending inventory is to be valued at approximately the lower-of-cost-or-net realizable value, the calculation of the cost to retail ratio should be based on goods available for sale at (1) cost and (2) retail, respectively of

€279,000 and €410,000.

€279,000 and €396,000.

€279,000 and €390,000.

€273,000 and €390,000.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The following data concerning the retail inventory method are taken from the financial records of Welch Company.

                                                                 Cost                       Retail 

Beginning inventory                    €  49,000               €  70,000

Purchases                                          224,000                 320,000

Freight-in                                         6,000                       —

Net markups                                            —                      20,000

Net markdowns                                      —                      14,000

Sales                                                          —                    336,000 

If the foregoing figures are verified and a count of the ending inventory reveals that merchandise actually on hand amounts to €54,000 at retail, the business has

realized a windfall gain.

sustained a loss.

no gain or loss as there is close coincidence of the inventories.

None of these choices are correct.

Create a free account and access millions of resources

Create resources
Host any resource
Get auto-graded reports
or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?