ACCTG 211 Inventory Valuation University Quiz

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7 questions

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1.

MULTIPLE CHOICE

30 sec • 1 pt

Which of the following assets must be reported at the lower-of-cost-or-market value?

2.

MULTIPLE CHOICE

30 sec • 1 pt

Misty, Inc. had 24,000 units of ending inventory that were recorded at the cost of $8.00 per unit using the FIFO method. The current replacement cost is $4.50 per unit. Which of the following amounts would be reported as Ending Merchandise Inventory on the balance sheet using the lower-of-cost-or-market rule?

3.

MULTIPLE CHOICE

30 sec • 1 pt

When a company uses the perpetual inventory method, which of the following would be the entry to adjust inventory to lower-of-cost-or-market?

4.

MULTIPLE CHOICE

30 sec • 1 pt

Which of the following is affected as a result of an error in performing the physical count of inventory at the end of the accounting period?

5.

MULTIPLE CHOICE

30 sec • 1 pt

Under the periodic inventory system, which of the following amounts will always stay the same regardless of the inventory valuation method used?

6.

MULTIPLE CHOICE

30 sec • 1 pt

A company that uses the periodic inventory system provided the following information:
1/ Beginning inventory $5,000
2. Purchases $130,000
3. Purchase discounts $2,000
4. Purchase returns and allowances $600
At the end of the period, the company does an inventory count and finds $16,000 worth of inventory on hand. What is the amount of cost of goods sold?

7.

MULTIPLE CHOICE

30 sec • 1 pt

Which of the following amounts could differ if a company, using the LIFO inventory costing method, shifts from a periodic inventory system to a perpetual inventory system?