1.
Pertanyaan #1
On January 1, 2016, Company X acquires inventory for $200. On January 1, 2017, Company X
estimates that it could sell the good for $250, with $20 for shipping and $20 to dispose of the
product. What should Company X value the inventory at on its books?
0 / 1 poin
$200
$210 xxxxxx
$230 xxx
$250 xxx
Salah
More information about the concept tested in this question can be found in the Lesson 3-1 video.
2.
Pertanyaan #2
On January 1, 2016, Company X had an inventory balance of $100,000. During the year, Company
X had net purchases of $400,000 and net sales of $300,000. Historically, Company X’s gross profit
ratio has been 30%. Using the gross profit method, what is Company X’s estimated ending inventory
balance?
1 / 1 poin
$210,000
$290,000
$360,000
$410,000
Benar
3.
Pertanyaan #3
Which of the following inventory valuation methods is not applied retroactively when a change from
another method has occurred?
0 / 1 poin
Average cost
FIFO xxxxxx
LIFO
Both average cost & LIFO
Salah
More information about the concept tested in this question can be found in the Lesson 3-4 video.
4.
Pertanyaan #4
Use the following information relating to Company X to answer questions 4-5.
Cost
Beginning Inventory $25,000
Net Purchases $50,000
Net Markups -
Net Markdowns -
Net Sales -
What is the estimate of cost of goods sold under the average cost retail method?
0 / 1 poin
$19,444
$35,632 xxxx
$45,784 xxxxxx
$55,556
Salah
More information about the concept tested in this question can be found in the Lesson 3-3 video.
5.
Pertanyaan #5
What is the estimate of ending inventory at cost under the conventional retail method?
0 / 1 poin
$18,750
$23,954 xxxx
$24,679
$33,734
Salah
More information about the concept tested in this question can be found in the Lesson 3-3 video.
6.
Pertanyaan #6
Use the following information to answer questions 6-8. Assume that there was a change of 5% in retail
prices over the year.
Cost
Beginning Inventory $20,000
Net Purchases $45,000
Net Markups -
Net Markdowns -
Net Sales -
What is Company X’s estimate of cost of goods sold under the LIFO retail method?
0 / 1 poin
$29,864 xxxxx
$33,428 xxxx
$36,089 xxxxxx
$38,571
Salah
More information about the concept tested in this question can be found in the Lesson 3-3 video.
7.
Pertanyaan #7
What is Company X’s ending inventory at retail under the dollar-value LIFO retail method?
1 / 1 poin
$29,864
$42,554
$55,000
$65,000
Benar
8.
Pertanyaan #8
What is Company X’s estimate of cost of goods sold under the dollar-value LIFO method?
0 / 1 poin
$30,908 xxxxxx
$39,429
$42,000 xxxx
$44,356 xxx
Salah
More information about the concept tested in this question can be found in the Lesson 3-3 video.
9.
Pertanyaan #9
Company X notices an error in accounting for inventory in the same period that the error was made.
How should Company X treat this error?
1 / 1 poin
Company X must release a disclosure note describing the error.
Company X must wait until the following period to correct the error.
Company X should first reverse the journal entry that created the error, and then record the
appropriate entry that should have been made originally.
Company X must retrospectively restate financial statements from previous years.
Benar
10.
Pertanyaan #10
Which of the following differentiates the conventional retail method from the other cost flow
methods?
0 / 1 poin
The estimate of cost of goods sold is most accurate under the conventional retail method. xxxxxxxx
The cost-to-retail percentage is based on the weighted averages of the costs and retail amounts of
all goods available for sale. xxxxxx
Multiple cost-to-retail percentages are not calculated for beginning inventory and additional
[Link]
Markdowns are not included when calculating the cost-to-retail percentage.
Salah
More information about the concept tested in this question can be found in the Lesson 3-3 video.