Practice More Quizzes:
Q:
The following is true of inventory in a merchandise business. Select all that apply.
Q:
True or false. Because of the cost principle, inventory is reported on the balance sheet at its selling price, not at what it cost to purchase the merchandise.
Q:
Where is the value of a raw material tracked?
Q:
Inventory errors will affect all of the following except:
Q:
Please use this information for Question 5 – 9: School’s back in session and Stan at ‘The Bizzy Bee’ has sold 85 of his Fidget Bands this week alone, and at the end of September, he had sold 142 total. He purchased 500 of them in August at $1,200 including shipping, and he is selling them for $12.99 each. What is the purchase cost (or inventory value cost) for those 500 units before any sales? (Format your answer as $x,xxx)
Q:
(Use info from question 5) Where would Stan record the 85 Fidget Bands he sold this week?
Q:
(Use info from question 5) What is Stan’s gross revenue from the sale of his 142 Fidget Bands? (Format your answer as $x,xxx.xx)
Q:
(Use info from question 5) What is Stan’s COGS for those 142 Fidget Bands? (Format your answer as $xxx.xx)
Q:
(Use info from question 5) What is the gross profit on Stan’s income statement for the sale of those 142 Fidget Bands? Remember Revenue – COGS = Gross Profit. (Format your answer as $x,xxx.xx)
Q:
When you buy raw materials, and record the purchase of those materials, this entry is a ________________ to raw materials inventory, and a ____________________ to cash or accounts payable.
Q:
Sarah is the owner of “Pish-Posh,” a bath shoppe with specialty candles, soaps, and bath bombs. She has decided to utilize the average costing method to calculate her raw inventory value. The prices listed are for the amount of ingredient listed (not necessarily per ounce). Looking at the ingredient list below, what would be the average cost per ounce to make her bath bombs? (Format answer x.xx, no words) 4 oz cornstarch $1.05 4 oz citric acid $2.35 4 oz Epsom salt $2.15 8 oz baking soda $1.85 1 oz Mica powder $3.25 1 oz essential oil $4.45 1 oz coconut oil $3.15
Q:
“Leaps and Bounds” is a seller and installer of funky playground equipment. At the beginning of 2019, they had a total of $105,000 of inventory (mostly tire swings, jungle gyms, and suspension bridges). During the year they purchased $60,000 worth of additional inventory (towers and zip lines). At the end of the year, they had a $3,500 inventory balance. What was their cost of goods sold? (Format your answer as $xxx,xxx)
Q:
In order to better keep track of their inventory levels, “Leaps and Bounds” has also just switched from an inventory monitoring system that updates every quarter, to one that updates every week. This kind of system is called ________?
Q:
Please use the information below for Question 14 – 18. Please use FIFO inventory method. Emily is the owner and operator of “Wine Not”, a wine shop for those who like to try wines from lesser-known vintners. She has grown in popularity with her weekly “Wine-down Wednesdays” tastings and inventory is a consistent worry for her. As Emily’s bookkeeper, you have to ensure that her inventory levels are accurately accounted for at the beginning and end of each month. In March, she ended with a total of 350 bottles with a cost of $15.00 each. In April, she ordered a total of 150 bottles with a cost of $17.00 each. During the month of April, she sold a total of 225 bottles. Question 14: What is the opening inventory value for April? (Format answer with whole number, no decimal, $x,xxx)
Q:
(Use information in Question 14) What was the additional inventory value for April? (Format answer with whole number, no decimal)
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(Use information in Question 14) What was the total inventory value for April? Also known as the cost of goods available? (Format answer with whole number, no decimal)
Q:
(Use information in Question 14) What was the cost of goods sold in April? (Format answer with whole number, no decimal)
Q:
(Use information in Question 14) What was the closing inventory value in April/opening inventory for May? (Format answer with whole number, no decimal)
Q:
When raw materials are used to create a final product, that product becomes a finished good. When that good is sold, the journal entry includes _______________ and ______________________. Select all that apply.
Q:
To correct inventory errors, a bookkeeper needs to do all of the following except which of the following? (select the best answer)
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