1 which of the following statements is trueathe cost of

Assignment Help Financial Accounting

Reference no: EM13355673

1. Which of the following statements is true?

a.The cost of goods available for sale consists of ending inventory and purchases.

b.An error in assigning inventory costs to the ending inventory balance does not affect the cost of goods sold for the same period.

c.Ending inventory costs represent amounts to be expensed in future periods when the inventory is sold.

d.Cost of goods sold represents unexpired inventory costs.

2. Home Depot counted its some of its inventory twice As a result, its cost of goods sold would be

a.overstated.

b.understated.

c.this mistake had no effect on operating expenses.

3. If a company understates its ending inventory balance for 2000 by $12,500, what are the effects on its net income for 2000 and 2001?

Effect on 2000 Net Income	Effect on 2001 Net Income
A. Overstated $12,500	Understated $12,500
B. Understated $12,500	Overstated $12,500
C. Understated $12,500	No effect
D. No effect	Overstated $12,500

4. Which inventory costing method assigns the cost of the most recent items purchased to the ending inventory balance?

a.specific identification

b.weighted average cost

c.FIFO

d.LIFO

Use the data below to answer the questions that follow. Assume that the company uses the periodic inventory system.

March 1	On hand, 150 units @ $5.50 each	$ 825.00
March 5	Purchased 300 units @ $5.22 each	1,566.00
March 14	Purchased 125 units @ $4.96 each	620.00
	Total cost of goods available for sale	$3,011.00
March 31	On hand, 220 units

5. If the company uses the FIFO inventory, the cost of goods sold for March would be

a.$ 1,895.10

b.$ 1,952.50

c.$ 1,820.60

d.$ 1,858.97

Reference no: EM13355673

Questions Cloud

1 which of the following can be affected by gaapalegal : 1. which of the following can be affected by gaap?a.legal ability to issue bonds.b.ability to balance the

Q1 a governmental entity is the recipient of a bequest of a : q1. a governmental entity is the recipient of a bequest of a multi-story office building that the government intends to

Q1 on november 30 2008 crown food purchased two trucks for : q1. on november 30 2008 crown food purchased two trucks for a total of 70000 issuing a one-year 8 note payable all due

1 collections of accounts receivable that previously have : 1. collections of accounts receivable that previously have been written off are credited to a.a gain account b.accounts

1 which of the following statements is trueathe cost of : 1. which of the following statements is true?a.the cost of goods available for sale consists of ending inventory and

Use the data below to answer the questions that follow : use the data below to answer the questions that follow. assume that the company uses the periodic inventory system.

Q1 richard company purchased a building on a tract of land : q1. richard company purchased a building on a tract of land and allocated the entire cost of the purchase to building.

Use the information presented below for sunside villas inc : use the information presented below for sunside villas inc. for 2007 and 2006 to answer the questions that follow.

1 which of the following segment performance measures will : 1. which of the following segment performance measures will decrease if there is an increase in the corporate interest

User Account

All Pages