Question

Accounting questions

Could Shoes Goud Shoe Store has beginning mechand o ty were $140,000, purchase returns 54.000, freight-in 10 end of the period revealed that $20,000 was still on hand A) 516-4,000 B) 5156,000 C) 5176.000 D) SI 4.000 tory of 10.000. A e the period purch l conventory the ads availa still on h 17. The inventory account is A reported under the classification or Property. Plant, B) reported as a current asset on the balance sheet generally valued at the price for which the goods can be D) often reported as a miscellane ht, and Equipment on the balance sheet 18. The factor which deter on the income statement actor which determin should be include Is should be included in a physical count of inventory A) B) physical possession legal title C) management's judgment. D) whether or not the purchase price has been paid. 19. Which of the following accounts is not closed to Income Summary A) Sales Discounts B) Cost of Goods Sold C) Sales D) Inventory 20. Purple Company uses a periodic in Company uses a periodic inventory system. Details for the inventory account for the month of June, are as follows: Units Unit Cost Total Cost Balance, 6/1 200 S5.00 $1,000 Purchase, 6/10 100 S5.30 S 530 Purchase, 6/25 100 S5.50 $ 550 The ending inventory (6/30) showed that 120 units were on hand. Using the weighted average costing method, what is the value of the ending inventory? A) 5600 B) 5624 C) 5656 D) 5660 1. A company just starting business made the following four inventory purchases in June: Total Cost Junel 150 units S 375 June 10 200 units 600 June 15 200 units 640 June28 150 units S2.125 510 physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Us LIFO inventory method, the value of the ending inventory on June 30 is $670. B) $1,455. C) 5525. D) $1,600. Version 2 Page 3

Answer 1

16.
Cost of goods available for sale = $30000+140000-4000+10000 = $176000

Answer is C. $176000

17.
Answer is B. reported as current asset in balance sheet
Inventory is current asset

18.
Answer is A. Physical Possession
Goods which are physically available are included for physical count

19.
Answer is D. Inventory
Inventory is not a temporary account, it is a current asset, it is not closed

20.
Average cost per unit = (1000+530+550) / (200+100+100) = $5.20 per unit
Ending Inventory = 120 x $5.20 = $624

Answer is B. $624

21.
Under LIFO, goods purchased last are sold first, therefore ending inventory consists of inventory purchased first.

Ending Inventory = $375 + 50 x $3 = $525

Answer is C. $525