- 1 Strayer ACC 556 Chapter 6 Quiz
- 2 STATUS
Strayer ACC 556 Chapter 6 Quiz
Raw materials inventories are the goods that a manufacturing company has completed and are ready to be sold to customers.
Goods held on consignment should be included in the consignor’s ending inventory
If a company has no beginning inventory and the unit cost of inventory items does not change during the year, the value assigned to the ending inventory will be the same under LIFO and average cost flow assumptions
The LIFO method is rarely used because most companies do not sell the last goods they purchase first.
The FIFO reserve is a required disclosure for companies that use FIFO.
Manufactured inventory that has begun the production process but is not yet completed is
Which of the following should not be included in the physical inventory of a company?
At December 31, 2014 Howell Company’s inventory records indicated a balance of $858,000. Upon further investigation it was determined that this amount included the following:
$168,000 in inventory purchases made by Howell shipped from the seller 12/27/14 terms FOB destination, but not due to be received until January 2nd
$111,000 in goods sold by Howell with terms FOB destination on December 27th. The goods are not expected to reach their destination until January 6th.
$9,000 of goods received on consignment from Westwood Company
What is Howell’s correct ending inventory balance at December 31, 2014?
Noise Makers Inc has the following inventory data:
July 1 Beginning inventory 20 units at $19 $ 380
7 Purchases 70 units at $20 1,400
22 Purchases 10 units at $22 220
A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the average cost method, the value of ending inventory is
Inventory costing methods place primary reliance on assumptions about the flow of
Name: Jennifer Lucas
Status: Online ⬤
Classes Taken: 3878
Many companies use just-in-time inventory methods. Which of the following is not an advantage of this method?
Which of the following statements is correct with respect to inventories?
In periods of rising prices, which is the advantage of using the LIFO inventory costing method?
Jenks Company developed the following information about its inventories in applying the lower of cost or market (LCM) basis in valuing inventories:
Product Cost Market
A $57,000 $60,000
B 40,000 38,000
C 80,000 81,000
If Jenks applies the LCM basis, the value of the inventory reported on the balance sheet would be
Selection of an inventory costing method by management does not usually depend on
Which statement concerning lower of cost or market (LCM) is incorrect?
Use the following information regarding Black Company and Red Company to answer the question “Which of the following is Red Company’s “cost of goods sold” for 2014 (to the closest dollar)?”
A low number of days in inventory may indicate all of the following except
The LIFO reserve is
Match the items below by entering the appropriate code letter in the space provided.