Questions on Cost Measurement and Flow Assuption . Let me know


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Questions on Cost Measurement and Flow Assuption . Let me know the result Iassignt one but who ever get the answers are ok 6 pages Asignación #6 – Intermedia (201 – Estudia 2016) (1).pdf Nombre:______________________________ Asignación#6 Contabilidad Intermedia 201 Fecha:_____________ Inventories: Cost Measurement and Flow Assumptions MULTIPLE CHOICE 1. Which of the following is not an advantage of a perpetual inventory system? a. assists in the prevention of stockouts b. requires less data processing effort than periodic systems c. maintains up-to-date inventory and cost of goods sold balances d. provides evidence of inventory shrinkage 2. The cost of goods sold can be determined only after a physical count of inventory on hand under the a. perpetual inventory system b. variable costing system c. moving average system d. periodic system 3. Using the following letters to represent items: P = Purchases (net) C = Cost of goods sold B = Beginning inventory E = Ending inventory Which equation is correct? a. B – C + P = E b. B – E = C + P c. P – E = B + C d. B = C – E + P 4. Which one of the following statements is not true? a. A company using the periodic system does not maintain a continuous record of the physical quantities (or costs) of inventory on hand. b. In the periodic system, the costs of acquisition of inventory are not debited directly to an inventory account. c. In the perpetual inventory system, recording in detailed subsidiary records can be in units only-not in dollar costs. d. When the perpetual system is used, a physical count does not need to be made periodically. Asignación #6 (ACCO 201 – Prof. Carlos Álvarez) 6-1 5. Jorgensen Jelly Bean Co. purchased raw materials with a catalog price of $70,000. Credit terms of 5/15, n/60 apply. If Jorgensen uses the net price method, the purchase should be recorded at a. $70,000 b. $66,500 c. $59,500 d. $42,000 6. Near the end of 2015, Wilson Co. made the following purchases. The months involved in all cases are December 2015 and January 2016. Amount $1,575 2,430 1,890 2,700 FOB Destination Shipping Point Shipping Point Destination Date Goods Shipped 12/29 1/2 12/28 12/29 Date Invoice Mailed 1/2 12/29 1/2 12/27 Date Goods Rec’d 1/5 1/4 1/3 1/2 Date Invoice Rec’d 1/4 12/30 1/4 12/28 What amount of the above purchases should be included in inventory at December 31, 2015? a. $1,575 b. $1,890 c. $4,320 d. $4,575 7. Sylvia’s Designs Co. had the following inventory activity during April: Units Beginning inventory Purchase (April 3) Sale (April 10) Purchase (April 18) Purchase (April 23) Sale (April 28) 100 50 80 40 60 120 Unit Cost $10 12 14 15 Assuming Sylvia’s uses a perpetual LIFO cost flow assumption, ending inventory for April would be a. $ 500 b. $ 750 c. $2,560 d. $2,310 6-2 8. Which of the following inventory cost flow assumptions produces the same ending inventory values under both the periodic and perpetual systems? a. FIFO b. LIFO c. Average d. Dollar-Value LIFO 9. Sylvia’s Designs Co. had the following inventory activity during April: Units Beginning inventory Purchase (April 3) Sale (April 10) Purchase (April 18) Purchase (April 23) Sale (April 28) 100 50 80 40 60 120 Unit Cost $10 12 14 15 Assuming Sylvia’s uses a periodic LIFO cost flow assumption, ending inventory for April would be a. $2,560 b. $ 750 c. $2,310 d. $ 500 10. Mama’s Mexican Meals, Inc., had the following activity for an inventory item during June: Units Beginning inventory Purchase (June 5). Purchase (June 15) Sale (June 20). Sale (June 25). Purchase (June 30) 50 10 30 40 20 10 Unit Cost $10 16 14 20 Assuming Mama’s uses a periodic weighted average cost flow assumption, cost of goods sold for June would be a. $512 b. $560 c. $768 d. $720 Asignación #6 (ACCO 201 – Prof. Carlos Álvarez) 6-3 11. Which one of the following is not a disadvantage of the specific identification method of inventory costing? a. it allows manipulation of profits b. it does not match expens

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