- 4 Consider The Information Below Beginning Inventory Of 10 Units Sold At 10 Each January 20 Purchase 10 Units At 2 1 (140.13 KiB) Viewed 40 times
- 4 Consider The Information Below Beginning Inventory Of 10 Units Sold At 10 Each January 20 Purchase 10 Units At 2 2 (380.71 KiB) Viewed 40 times
- 4 Consider The Information Below Beginning Inventory Of 10 Units Sold At 10 Each January 20 Purchase 10 Units At 2 3 (272.79 KiB) Viewed 40 times
- 4 Consider The Information Below Beginning Inventory Of 10 Units Sold At 10 Each January 20 Purchase 10 Units At 2 4 (261.84 KiB) Viewed 40 times
4. Consider the information below: Beginning inventory of 10 units sold at $10 each January 20 - purchase 10 units at $20 each January 30 - purchase 5 units at $30 each; and 15 of the 25 units were sold. Using FIFO, the: a. cost of goods sold will equal $350 b. ending inventory will equal $180 c. goods available for sale will equal $450 d. most recent costs are allocated to the income statement
5. Consider the information below: each 15 of the 25 units were sold. Beginning inventory of 10 units sold at $10 January 20 - purchase 10 units at $20 each January 30 - purchase 5 units at $30 each; and Using the average cost method, the: a. cost of goods sold will be a value between FIFO and LIFO b. ending inventory will be equal to $180 goods available for sale will equal $450 c. d. inventory sales and purchases will be reported in the investing activity section of the statement of cash flows. 6. A company has sales of $200 000; beginning inventory $30 000; Purchases $100 000 and inventory sold $90 000. It is true that: a. goods available for sale equal $200 000 b. ending inventory equals $30 000 C. cost of goods sold equals $40 000 d. gross profit equals $110 000 7) The inventory method which results in the highest gross profit for June is a. the FIFO method. b. the LIFO method. c. the weighted average unit cost method. d. not determinable. 8) Stock valuation was carried out after a period of significantly decreasing prices. Which of the following stock valuation methods is likely to result in the highest figure for closing inventory? a. First-in First-out b. Last-in First-out c. Periodic weighted average d. Weighted average
9) An accounting technician carries out the following calculation: Re-order level - (average usage x average lead time) What is he/she trying to determine? a. Maximum inventory control level b. Minimum inventory control level c. Equilibrium order quantity d. Safety level of inventory 10) A firm used between 20 and 30 units of a material each day. Whenever an order is placed it would take 5 to 7 days to receive the item. What is the reorder level? a. 210 b. 180 c. 150 d. 100 11) The purchases of an inventory item in a period were: Day Units Total cost ($) 4 250 975 8 500 2,000 12 250 1,125 There was no opening inventory. 700 units were issued on Day 15. The Last-in first-out (FIFO) method is used. What is the valuation of the closing inventory? a. $1,170 b. $1,175 c. $1,325 d. $1,350
12) Which of the following is the correct method for calculating the maximum inventory control level? a. Re-order level + (maximum usage × maximum lead time) – re-order quantity b. Re-order level + re-order quantity – (minimum usage × minimum lead time) c. Re-order level + re-order quantity – (minimum usage × maximum lead time) d. Re-order quantity + (maximum usage × maximum lead time) – re-order level The following data relates to questions 13 and 14. EZ Company has the following details for an inventory item: Ordering cost: $300 per order Holding cost: $7.5 Annual demand (based on 200 working days for the year): 8 000 units Lead time: 2 to 6 days Usage: 20 to 60 per day 13) What is the economic order quantity in units? a. 20 b. 650 C. 800 d. 8 000 14) What is the re-order level? a. 40 b. 160 c. 200 d. 360