ACCT 1A – Quiz Ch 7

24 December 2022
5 (75 reviews)
9 test answers

Unlock all answers in this set

Unlock answers (5)
question
Which document authorizes the purchase of inventory from an approved vendor? a. receiving report b. purchase order c. petty cash voucher d. vendor's invoice
answer
b. purchase order
question
All of the following are documents used for inventory control EXCEPT a a. petty cash voucher b. receiving report c. vendor's invoice d. purchase order
answer
a. petty cash voucher
question
Cost flow is in the reverse order in which costs were incurred when using a. last-in, first-out b. weighted average c. first-in, first-out d. average cost
answer
a. last-in, first-out
question
Under the _____ inventory method, accounting records maintain a continuously updated inventory value. a. physical b. periodic c. retail d. perpetual
answer
d. perpetual
question
Use the information below to answer the following question. The following units of an inventory item were available for sale during the year: Beginning inventory 10 units at $55 First purchase 25 units at $60 Second purchase 30 units at $65 Third purchase 15 units at $70 The firm uses the periodic inventory system. During the year, 60 units of the item were sold. The value of ending inventory using FIFO is a. $1,150 b. $1,250 c. $1,350 d. $1,375
answer
d. $1,375
question
Use the information below to answer the following question. The following units of an inventory item were available for sale during the year: Beginning inventory 10 units at $55 First purchase 25 units at $60 Second purchase 30 units at $65 Third purchase 15 units at $70 The firm uses the periodic inventory system. During the year, 60 units of the item were sold. The value of ending inventory rounded to the nearest dollar using average cost is a. $1,263 b. $1,375 c. $1,353 d. $1,150
answer
a. $1,263
question
Use the information below to answer the following question. The following lots of a particular commodity were available for sale during the year: Beginning inventory 5 units at $61 First purchase 15 units at $63 Second purchase 10 units at $74 Third purchase 10 units at $77 The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year. What is the amount of cost of merchandise sold for the year according to the average cost method? a. $1,250 b. $1,380 c. $1,510 d. $1,375
answer
b. $1,380
question
Use the information below to answer the following question. The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $60 First purchase 25 units at $65 Second purchase 30 units at $68 Third purchase 15 units at $75 The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year rounded to the nearest dollar using the average cost method? a. $1,685 b. $1,805 c. $3,705 d. $1,575
answer
a. $1,685
question
Damaged merchandise that can be sold only at prices below cost should be valued at a. first-in, first-out b. net realizable value c. average cost d. last-in, first-out
answer
b. net realizable value