ACCT 370 Read & Interact Revsine, Collins, Johnson, Mittelstaedt, Soffer Chapter 10 solution answers

ACCT 370 Read & Interact Revsine, Collins, Johnson, Mittelstaedt, & Soffer Chapter 10 solutions complete answers

 

Inventory that contains the cost of units that have been started but not completed as of the balance sheet date is called

 

Bennett Corporation sells kayaks. At the beginning of the year, there was one kayak in inventory costing $500. Bennett purchased another kayak during the period for $550 and then sold one of the kayaks for $750. How much was the goods available for sale during the period?

 

The total cost of goods available for sale must be allocated between which of the following accounts?

 

Riley Corporation sells bicycles. At the beginning of the year, there was one bicycle in inventory costing $500. Riley purchased another bicycle during the period for $600 and then sold one of the bicycles for $850. Identify the true statement.

 

Riley Corporation sells bicycles. At the beginning of the year, there was one bicycle in inventory costing $800. Riley purchased another bicycle for $900 and then sold one of the bicycles for $1,100. How much should be allocated to ending inventory using the first-in, first-out method (FIFO)?

 

Inventory that represents the total costs of completed but unsold units is called

 

Santiago Corporation sells ultra-lite backpacks for backpacking. At the beginning of the year, there was one backpack in inventory costing $200. Santiago purchased another backpack for $250 and then sold one of the backpacks for $375. How much should be allocated to cost of goods sold using the last-in, first-out method (LIFO)?

 

Bennett Corporation sells kayaks. At the beginning of the year, there was one kayak in inventory costing $300. During the period, Bennett purchased another kayak for $325 and sold one of the kayaks for $475. Identify the true statement.

 

Goods available for sale must be allocated between       inventory and cost of goods sold.

 

Cost of good sold can be calculated as

 

Riley Corporation sells bicycles. At the beginning of the year, there one bicycle in inventory costing $800. Riley purchased another bicycle for $900 and then sold one of the bicycles for $1,100. How much is allocated to ending inventory and cost of goods sold using the weighted average method?

 

Identify the correct statement regarding the two different methods for determining inventory quantities.

 

Riley Corporation sells bicycles. At the beginning of the year, there was one bicycle in inventory costing $800. Riley purchased another bicycle for $900 and then sold one of the bicycles for $1,100. How much should be allocated to Cost of goods sold using the first-in, first-out method (FIFO)?

 

The method of inventory that accumulates purchases in a separate income statement account is the       inventory system.

 

Santiago Corporation sells ultra-lite backpacks for backpacking. At the beginning of the year, there was one backpack in inventory costing $200. Santiago purchased another backpack for $250 and then sold one of the backpacks for $375. How much should be allocated to ending inventory using the last-in, first-out method (LIFO)?

 

Identify the true statement regarding methods of determining inventory quantities.

 

True or false: Generally accepted accounting principles do not require the cost flow assumption to correspond to the physical flow of inventory.

 

Which of the following are true of goods shipped on consignment?

 

Baxter Corporation had the following balances throughout the year:Beginning inventory $1,200Ending Inventory $800Purchases $1,500Goods available for sale $2,700What is the cost of goods sold?

 

True or false: The carrying cost of inventory will include the purchase cost, sales tax, transportation costs, insurance costs, storage costs, and any other costs required to obtain the merchandise and make it ready for sale.

 

The inventory method that keeps a running record of the amount of inventory on hand is known as the

 

Costs that are not inventoried but are treated as expenses when incurred are called       costs.

 

Which of the following statements is true?

 

Under both IFRS and U.S. GAAP, the cost of direct labor and overhead costs include

 

Which of the following are true regarding the perpetual inventory system?

 

Which of the following are not true of goods shipped on consignment?

 

Using       costing, fixed costs are allocated based on the number of units produced.

 

Which of the following is not included in the cost of inventory?

 

Which of the following are true of vendor allowances?

 

Costs that are assigned to inventory and treated as assets until the inventory is sold are       costs.

 

Which of the following are true of specific identification?

 

Costs that change in proportion to the level of production are

 

Identify the correct statement regarding the first-in, first-out (FIFO) inventory method.

 

Messer Corporation sells recreational vehicles (RV). At the beginning of the year, they had one RV in inventory costing $40,000. They purchased another RV for $42,000. They sold one of the RVs for $57,500. How much is gross profit using the last-in, first-out (LIFO) method?

 

Identify the true statement regarding absorption costing and variable costing.

 

Which of the following are true of current cost accounting?

 

A practice in retail sales in which manufacturers of products provide cash payments and/or credits to their customers is known as

 

Which of the following are true of the LIFO reserve?

 

The inventory method that measures cost of goods sold using the actual units sold is known as the             method.

 

Current ratio distortion under LIFO inventory costing may be adjusted by

 

Messer Corporation sells recreational vehicles (RV). At the beginning of the year, they had one RV in inventory costing $40,000. They purchased another RV for $42,000. They sold one of the RVs for $57,500. How much is gross profit using the first-in, first-out (FIFO) method?

 

Which of the following are true statements regarding research about inventory choices?

 

Identify the incorrect statement regarding the last-in, first-out method of inventory.

 

The use of the lower of cost or net realizable value (LCNRV) method to value inventory for reporting purposes is a departure from the accounting principle of

 

True or false: Current cost accounting must be used under GAAP to overcome the weaknesses in recording holding gains and losses.

 

Under LIFO-LCM, market should not exceed the inventory's net realizable value (NRV). This is known as the      .

 

A disclosure required by the SEC to report the dollar magnitude of the difference between LIFO and FIFO inventory costs is the            . (Enter one word or term per blank)

 

The inventory turnover ratio can be distorted due to a LIFO reserve because

 

Research evidence consistently shows that ______ adopters have lower levels of inventory fluctuations and lower leverage in comparison with other inventory method adopters.

 

The LCNRV method can be applied to

 

Under LIFO-LCM, market should not be less than the inventory's NRV reduced by an allowance for an approximately normal profit margin. This is known as the       .

 

Examples of period costs include

 

Inventory that consists of components that will be used in a completed product is called