- Description
ACC 290 Week 4 Practice Quiz
Practice Question 50
A company just starting business made the following inventory transactions in August:
| Purchase on August 1 | 300 units | $1,560 | ||
| Sale on August 8 | 200 units | 3,400 | ||
| Purchase on August 12 | 400 units | 1,340 | ||
| Sale on August 24 | 350 units | 5,950 |
Using the LIFO inventory method, how much is cost of goods sold for August using a perpetual inventory system?
| $2,120 |
| $2,212.50 |
| $6,450 |
| $9,350 |
Practice Question 49
A company just starting business made the following purchases in August:
| August 1 | 300 units | $1,560 | ||
| August 12 | 400 units | 2,340 | ||
| August 24 | 400 units | 2,520 | ||
| August 30 | 300 units | 1,980 | ||
| 1,400 units | $8,400 |
A physical count of the inventory on August 31 reveals that there are 500 units on hand. Using the FIFO inventory method in a perpetual inventory system, how much is the value of the ending inventory on August 31?
| $3,240 |
| $2,730 |
| $5,670 |
| $5,160 |
Practice Question 48
Which statement is true in a perpetual inventory system?
| A new average is computed under the average cost method after each sale. |
| Average costs are based entirely on unit-cost simple averages. |
| LIFO cost of goods sold will be the same as in a periodic inventory system. |
| FIFO cost of goods sold will be the same as in a periodic inventory system. |
Practice Question 43
Inventory turnover is calculated by dividing cost of goods sold by
| average inventory. |
| beginning inventory. |
| 365 days. |
| ending inventory. |
Practice Question 42
Net sales are $2,000,000, cost of goods sold is $960,000, and average inventory is $30,000. How many days sales are in inventory?
| 2.6 |
| 12.2 |
| 11.4 |
| 66.7 |
Practice Question 40
The following information came from the income statement of the Wilkens Company at December 31, 2017: sales revenue $1,800,000; beginning inventory $160,000; ending inventory $240,000; and gross profit $600,000. What is Wilkens’ inventory turnover ratio for 2017?
| 3.0 times |
| 6.0 times |
| 2.5 times |
| 3.75 times |
Practice Question 39
Carlos Company had beginning inventory of $80,000, ending inventory of $110,000, cost of goods sold of $285,000, and sales revenue of $475,000. What is Carlos’ days in inventory?
| 84.5 days |
| 73 days |
| 121.7 days |
| 102.5 days |
Practice Question 30
In a period of falling prices, which of the following methods will give the largest net income?
| FIFO |
| Specific identification |
| Average-cost |
| LIFO |
Practice Question 28
In a period of rising prices which inventory method will result in the greatest amount of income tax expense?
| Specific identification |
| FIFO |
| Average cost |
| LIFO |
Practice Question 17
Which of the following is true of the FIFO inventory method?
| It assumes that the cost of the earliest units purchased are the last to be allocated to the beginning inventory. |
| It assumes that the cost of the earliest units purchased are the last to be allocated to cost of goods sold. |
| It assumes that the cost of the earliest units purchased are the first to be allocated to the ending inventory. |
| It assumes that the cost of the earliest units purchased are the first to be allocated to cost of goods sold. |