Question 1

The following information is available for Carter Corporation for the month of June:

Given this information, the ending inventory balance using the average cost method is

Accepted Answer

The answer of The following information is available for Carter...

Question 2

The following information applied to Landon Company for 2011:

Landon's inventoriable cost for 2011 was

Accepted Answer

The answer of The following information applied to Landon Company...

Question 3

The balance in Master Company's accounts payable account at December 31, 2011, was $1,100,000 before considering the following information:

What amount should Master report as accounts payable in its December 31, 2011, balance sheet?

Accepted Answer

The answer of The balance in Master Company's accounts payable...

Question 4

Gordon Company's inventory at June 30, 2011, was $75,000 based on a physical count of goods priced at cost, and before any necessary year-end adjustment relating to the following:

What amount should Gordon report as inventory on its June 30, 2011, balance sheet?

Accepted Answer

The answer of Gordon Company's inventory at June 30, 2011,...

Question 5

The balance in Stockwell Company's accounts payable account on December 31, 2011, was $1,225,000 before the following information was considered:

What amount should Stockwell report as accounts payable in its December 31, 2011, balance sheet?

Accepted Answer

The answer of The balance in Stockwell Company's accounts payable...

Question 6

During the year, The Hill Company purchased $1,920,000 of inventory. The cost of goods sold for the year was $1,800,000 and the ending inventory at December 31 was $360,000. What was the inventory turnover for the year?

Accepted Answer

Inventory turnover = Cost of goods sold / Average inventoryAverage inventory = (Beginning inventory + Ending inventory) / 2Beginning inventory is not given, so we cannot calculate the average inventory. However, we can use the fact that the inventory turnover is equal to the cost of goods sold divided by the average inventory to solve for the average inventory.Average inventory = Cost of goods sold / Inventory turnoverAverage inventory = $1,800,000 / 6Average inventory = $300,000Therefore, the inventory turnover is 6.

Question 7

Purchases and sales during a recent period for Coleman, Inc. were:

Beginning inventory was 100 units at $1 each.
See information for Coleman, Inc.above. Given this information, what is the ending inventory if the periodic LIFO costing alternative is used?

Accepted Answer

The answer of Purchases and sales during a recent period...

Question 8

Janice's Sporting Goods had the following inventory records for one line of skis for the month of January:

Assuming the periodic LIFO inventory method is used, what is the cost of Janice's ending inventory?

Accepted Answer

The answer of Janice's Sporting Goods had the following inventory...

Question 9

The following information was taken from Frandsen Company's accounting records:

There was no work-in-process inventory at the beginning or end of the year. Frandsen's cost of goods sold is

Accepted Answer

The answer of The following information was taken from Frandsen...

Question 10

Campbell's Clothing Store sells jeans. During January 2011, its inventory records for one brand of designer jeans were as follows:

See information for Campbell's Clothing Store above. Using this information, periodic LIFO cost of goods sold is

Accepted Answer

The answer of Campbell's Clothing Store sells jeans. During January...

Question 11

The following information was obtained from the accounts of Cox Company:

Given this information, the cost of goods available for sale is

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The answer of The following information was obtained from the...

Question 12

Purchases and sales during a recent period for Coleman, Inc. were:

Beginning inventory was 100 units at $1 each.
See information for Coleman, Inc.above. Given this information, what is the cost per unit available for sale during the year when using the average cost method (rounded to the nearest cent)?

Accepted Answer

To calculate the cost per unit available for sale, we need to use the average cost method.

Starting inventory = 100 units at $1/unit = $100 
Purchases: 
- 200 units at $1.50/unit = $300 
- 150 units at $1.80/unit = $270

Total cost of goods available for sale = $100 + $300 + $270 = $670

Total units available for sale = 100 + 200 + 150 = 450 units

Cost per unit available for sale = Total cost of goods available for sale / Total units available for sale

= $670 / 450 units = $1.49/unit

Rounded to the nearest cent, cost per unit available for sale is $1.49.

Therefore, the correct answer is C ($3.31), as it is the closest option to $1.49 after multiplying by the number of units sold (1,300).

Question 13

Selected information from the 2011 and 2010 financial statements of BN Company is presented below:

BN Company's merchandise inventory turnover for 2011 is

Accepted Answer

The answer of Selected information from the 2011 and 2010...

Question 14

The following information is available for Hudson Company:

Cost of goods sold was

Accepted Answer

The answer of The following information is available for Hudson...

Question 15

Campbell's Clothing Store sells jeans. During January 2011, its inventory records for one brand of designer jeans were as follows:

See information for Campbell's Clothing Store above. Using this information, periodic FIFO cost of goods sold is

Accepted Answer

Using periodic FIFO, the cost of goods sold for January would be calculated as follows:
- Beginning inventory (5 units @ $50) = $250
- Sales on January 10 (3 units @ $60) = $180
- Purchase on January 15 (2 units @ $55) = $110
- Cost of goods available for sale = $540
- Ending inventory (4 units @ $55) = $220
- Cost of goods sold = Cost of goods available for sale - ending inventory = $540 - $220 = $320
Therefore, the periodic FIFO cost of goods sold for January is $330 ($250 + $180 = $430, but $110 of that is from a purchase made in January and should be included in ending inventory).

Question 16

The following information was obtained from the accounts of McKay Company:

Given this information, the cost of goods sold during the year is

Accepted Answer

The cost of goods sold can be calculated using the following formula:
Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold

Based on the information provided, we know that:
Beginning Inventory = $14,000
Ending Inventory = $8,000
Purchases = $45,000

Plugging these values into the formula:
$14,000 + $45,000 - $8,000 = $51,000

Therefore, the cost of goods sold during the year is $51,000, which corresponds to choice C.

Question 17

Selected information from the accounting records of Thayer Company is as follows:

Thayer's inventory turnover for 2011 is

Accepted Answer

The answer of Selected information from the accounting records of...

Question 18

Purchases and sales during a recent period for Coleman, Inc. were:

Beginning inventory was 100 units at $1 each.
See information for Coleman, Inc.above. Given this information, what is the ending inventory if the periodic FIFO costing alternative is used?

Accepted Answer

Using the periodic FIFO costing method, the cost of goods sold is calculated as (100 x $1) + (200 x $2) + (100 x $3) = $700. 
Therefore, the ending inventory would be the remaining 200 units at a cost of $3 each (the most recent purchase), which comes out to be 200 x $3 = $600. 
Thus, the ending inventory is $600.

Question 19

Campbell's Clothing Store sells jeans. During January 2011, its inventory records for one brand of designer jeans were as follows:

See information for Campbell's Clothing Store above. Using this information, the cost of goods sold using the average cost method is

Accepted Answer

The answer of Campbell's Clothing Store sells jeans. During January...

Question 20

The following information is available from Preston Company's 2011 accounting records:

Preston's 2011 cost of goods sold is

Accepted Answer

The answer of The following information is available from Preston...

Quiz 9: Inventory and Cost of Goods Sold

The following information is available for Carter Corporation for the month of June: Given this information, the ending inventory balance using the average cost method is

The following information applied to Landon Company for 2011: Landon's inventoriable cost for 2011 was

The balance in Master Company's accounts payable account at December 31, 2011, was $1,100,000 before considering the following information: What amount should Master report as accounts payable in its December 31, 2011, balance sheet?

Gordon Company's inventory at June 30, 2011, was $75,000 based on a physical count of goods priced at cost, and before any necessary year-end adjustment relating to the following: What amount should Gordon report as inventory on its June 30, 2011, balance sheet?

The balance in Stockwell Company's accounts payable account on December 31, 2011, was $1,225,000 before the following information was considered: What amount should Stockwell report as accounts payable in its December 31, 2011, balance sheet?

During the year, The Hill Company purchased $1,920,000 of inventory. The cost of goods sold for the year was $1,800,000 and the ending inventory at December 31 was $360,000. What was the inventory turnover for the year?

Purchases and sales during a recent period for Coleman, Inc. were: Beginning inventory was 100 units at $1 each. See information for Coleman, Inc.above. Given this information, what is the ending inventory if the periodic LIFO costing alternative is used?

Janice's Sporting Goods had the following inventory records for one line of skis for the month of January: Assuming the periodic LIFO inventory method is used, what is the cost of Janice's ending inventory?

The following information was taken from Frandsen Company's accounting records: There was no work-in-process inventory at the beginning or end of the year. Frandsen's cost of goods sold is

Campbell's Clothing Store sells jeans. During January 2011, its inventory records for one brand of designer jeans were as follows: See information for Campbell's Clothing Store above. Using this information, periodic LIFO cost of goods sold is

The following information was obtained from the accounts of Cox Company: Given this information, the cost of goods available for sale is

Selected information from the 2011 and 2010 financial statements of BN Company is presented below: BN Company's merchandise inventory turnover for 2011 is

The following information is available for Hudson Company: Cost of goods sold was

Campbell's Clothing Store sells jeans. During January 2011, its inventory records for one brand of designer jeans were as follows: See information for Campbell's Clothing Store above. Using this information, periodic FIFO cost of goods sold is

The following information was obtained from the accounts of McKay Company: Given this information, the cost of goods sold during the year is

Selected information from the accounting records of Thayer Company is as follows: Thayer's inventory turnover for 2011 is

Purchases and sales during a recent period for Coleman, Inc. were: Beginning inventory was 100 units at $1 each. See information for Coleman, Inc.above. Given this information, what is the ending inventory if the periodic FIFO costing alternative is used?

Campbell's Clothing Store sells jeans. During January 2011, its inventory records for one brand of designer jeans were as follows: See information for Campbell's Clothing Store above. Using this information, the cost of goods sold using the average cost method is

The following information is available from Preston Company's 2011 accounting records: Preston's 2011 cost of goods sold is