ACC/291T Principles Of Accounting Ii The Latest Version A+ Study Guide **********************************************
ACC 291T Entire Course Link http://www.onlinehelp123.com/acc-291 ********************************************** ACC 291T Wk 2 Practice: Connect Knowledge Check (2021.7 New) A company had beginning inventory of 10 units at a cost of $20 each on March 1. On March 2, it purchased 10 units at $22 each. On March 6 it purchased 6 units at $25 each. On March 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold? Multiple Choice • $450 • $520 • $470 • $570 • $490
Buffalo Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available: • The ending inventory balance of $412,000 did not include goods costing $48,000 that were purchased by Buffalo on December 28 and shipped FOB destination on that date. Buffalo did not receive the goods until January 2 of the following year. • The ending inventory balance of $412,000 included damaged goods at their original cost of $38,000. The net realizable value of the damaged goods was $10,000.
Based on this information, the correct balance for ending inventory on December 31 is: Multiple Choice • $422,000 • $374,000 • $384,000 • $438,000 • $460,000
All of the following statements related to goods on consignment are true except: Multiple Choice • The consignor continues to own the consigned goods. • Goods on consignment are goods provided by the owner, call the consignor. • The consignor reports the goods in its inventory until sold. • A consignee sells goods for the owner. • The consignee reports the goods in its inventory until sold.
A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $120 6 units February: 20 units at $125 5 units May: 15 units at $130 9 units September: 12 units at $135 8 units November: 10 units at $140 13 units ________________________________________ On December 31, there were 26 units remaining in ending inventory. Using the perpetual FIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) Multiple Choice •
$3,405. $3,200. $3,540. $3,365.
Physical counts of inventory: Multiple Choice • Are not necessary under the perpetual system. • Are necessary to adjust the Inventory account to the actual inventory available. • Are not necessary under the cost-to benefit constraint. • Requires the use of hand-held portable computers. • Must be taken at least once a month.
Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to the ending inventory using FIFO. Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 150 units @ $10.00 5 Purchase 220 units @ $12.00 10 Sales 140 units @ $20.00 15 Purchase 100 units @ $13.00 24 Sales 90 units @ $21.00 ________________________________________ Multiple Choice • $2,980 • $2,590 • $5,440 • $2,850 • $2,460
Damaged and obsolete goods that can be sold: Multiple Choice • Are assigned a value of zero. • Are never counted as inventory. • Are included in inventory at their net realizable value. • Should be disposed of immediately. • Are included in inventory at their full cost.
Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except: Multiple Choice • LIFO method. • Retail method. • FIFO method. • Specific identification method. • Weighted average method.
Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales: August 2 10 units were purchased at $12 per unit. August 18 15 units were purchased at $14 per unit. August 29 12 units were sold. What is the amount of the cost of goods sold for this sale? (Round average cost per unit to 2 decimal places.) Multiple Choice • $330.00 • $148.00 •
$210.00 • $150.50 • $158.40
Interim financial statements: Multiple Choice • Are necessary to achieve full disclosure about a business's operations. • Are required by the Congress. • Are statements prepared for periods of less than one year. • Require the use of the perpetual method for inventories. • Cannot be prepared if the company follows the conservatism principle.