Question 1

Bond Company adopted the dollar-value LIFO inventory method on January 1,2016.In applying the LIFO method,Bond uses internal cost indexes and the multiple-pools approach.The following data were available for Inventory Pool No.3 for the two years following the adoption of LIFO: 
Under the dollar-value LIFO method,the inventory at December 31,2017,should be

Accepted Answer

A)  $357,600.
B)  $350,000.
C)  $351,600.
D)  None of these answer choices is correct.E) None of the above
F) A) and C)

Question 2

Ramen Inc.adopted dollar-value LIFO (DVL) as of January 1,2016,when it had a cost inventory of $600,000.Its inventory as of December 31,2016,was $667,800 at year-end costs and the cost index was 1.06.What was DVL inventory on December 31,2016?

Accepted Answer

A)  $630,000.
B)  $631,800.
C)  $636,000.
D)  None of the above is correct.E) B) and C)
F) B) and D)

Question 3

Company A is identical to Company B in every regard except that Company A uses FIFO and Company B uses LIFO.In an extended period of rising inventory costs,Company A's gross profit and inventory turnover ratio,compared to Company B's,would be:

Accepted Answer

The answer of Company A is identical to Company B...

Question 4

Under the gross method,purchase discounts taken are:

Accepted Answer

A)  Deducted from interest expense.
B)  Added to net purchases.
C)  Added to interest income.
D)  Deducted from purchases.E) A) and B)
F) All of the above

Question 5

Thompson's 2016 inventory turnover ratio is:

Accepted Answer

A)  3.91.
B)  4.00.
C)  4.88.
D)  5.00.E) All of the above
F) A) and C)

Question 6

Dollar-value LIFO eliminates the risk of LIFO liquidations.

Accepted Answer

A) True 
 B)False

Question 7

During periods when costs are rising and inventory quantities are stable,ending inventory will be:

Accepted Answer

A)  Higher under LIFO than FIFO.
B)  Lower under average cost than LIFO.
C)  Higher under average cost than FIFO.
D)  Higher under FIFO than LIFO.E) None of the above
F) B) and D)

Question 8

Briefly explain the advantages of dollar-value LIFO (DVL).

Accepted Answer

DVL is less costly to apply than unit LI...

Question 9

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Random Creations uses average cost and a perpetual inventory system.

Accepted Answer

Perpetual ...

Question 10

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Denver uses LIFO and a periodic inventory system.

Accepted Answer

The answer of Required: Compute the January 31 ending inventory...

Question 11

Tiger Inc.adopted dollar-value LIFO on January 1,2016,when the inventory value was $360,000 and the cost index was 1.25.On December 31,2016,the inventory was valued at year-end cost of $395,000 and the cost index was 1.30.Tiger would report a LIFO inventory of:

Accepted Answer

A)  $410,800.
B)  $374,400.
C)  $379,808.
D)  $380,600.E) B) and C)
F) A) and D)

Question 12

Using the gross method,purchase discounts lost are:

Accepted Answer

A)  Included in purchases.
B)  Added to accounts payable.
C)  Included in interest expense.
D)  Deducted from discount income.E) All of the above
F) A) and D)

Question 13

What is Nu's net income if it elects FIFO?

Accepted Answer

A)  $ 480.
B)  $ 288.
C)  $1,360.
D)  $ 144.E) All of the above
F) None of the above

Question 14

Assuming Northwest uses the gross method to record purchases,what is the cost of goods available for sale?

Accepted Answer

A)  $492,500.
B)  $496,500.
C)  $490,500.
D)  $492,550.E) None of the above
F) B) and D)

Question 15

The ending inventory assuming FIFO is:

Accepted Answer

A)  $5,140.
B)  $5,080.
C)  $5,060.
D)  $5,050.E) All of the above
F) A) and B)

Question 16

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Accepted Answer

The answer of Listed below are 5 terms followed by...

Question 17

Udon Inc.adopted dollar-value LIFO (DVL) as of January 1,2016,when it had an inventory of $700,000.Its inventory as of December 31,2016,was $777,000 at year-end costs and the cost index was 1.05.What was DVL inventory on December 31,2016?

Accepted Answer

A)  $735,000.
B)  $740,000.
C)  $742,000.
D)  $777,000.E) A) and D)
F) A) and C)

Question 18

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2016.  Missing information has been left blank.
-Required:  Compute the missing amounts.

Accepted Answer

The answer of The following information is taken from the...

Question 19

What is Nueva's gross profit ratio (rounded) if it elects FIFO?

Accepted Answer

A)  30%.
B)  32%.
C)  10.7%.
D)  60%.E) A) and D)
F) B) and C)

Question 20

Company C is identical to Company D in every respect except that Company C uses LIFO and Company D uses average costs.In an extended period of rising inventory costs,Company C's gross profit and inventory turnover ratio,compared to Company D's,would be:

Accepted Answer

The answer of Company C is identical to Company D...

Exam 8: Inventories: Measurement

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2016. Missing information has been left blank. -Required: Compute the missing amounts.

Correct Answer
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Company C is identical to Company D in every respect except that Company C uses LIFO and Company D uses average costs.In an extended period of rising inventory costs,Company C's gross profit and inventory turnover ratio,compared to Company D's,would be:

Correct Answer
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Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Denver uses LIFO and a periodic inventory system.

Correct Answer
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Using the gross method,purchase discounts lost are:

Correct Answer
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Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Correct Answer
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Under the gross method,purchase discounts taken are:

Correct Answer
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Tiger Inc.adopted dollar-value LIFO on January 1,2016,when the inventory value was $360,000 and the cost index was 1.25.On December 31,2016,the inventory was valued at year-end cost of $395,000 and the cost index was 1.30.Tiger would report a LIFO inventory of:

Correct Answer
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Briefly explain the advantages of dollar-value LIFO (DVL).

Correct Answer
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DVL is less costly to apply than unit LI...
View Answer

During periods when costs are rising and inventory quantities are stable,ending inventory will be:

Correct Answer
verified

Ramen Inc.adopted dollar-value LIFO (DVL) as of January 1,2016,when it had a cost inventory of $600,000.Its inventory as of December 31,2016,was $667,800 at year-end costs and the cost index was 1.06.What was DVL inventory on December 31,2016?

Correct Answer
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The ending inventory assuming FIFO is:

Correct Answer
verified

What is Nu's net income if it elects FIFO?

Correct Answer
verified

Udon Inc.adopted dollar-value LIFO (DVL) as of January 1,2016,when it had an inventory of $700,000.Its inventory as of December 31,2016,was $777,000 at year-end costs and the cost index was 1.05.What was DVL inventory on December 31,2016?

Correct Answer
verified

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Random Creations uses average cost and a perpetual inventory system.

Correct Answer
verified
Perpetual ...
View Answer

Correct Answer
verified

Assuming Northwest uses the gross method to record purchases,what is the cost of goods available for sale?

Correct Answer
verified

Dollar-value LIFO eliminates the risk of LIFO liquidations.

Correct Answer
verified

Company A is identical to Company B in every regard except that Company A uses FIFO and Company B uses LIFO.In an extended period of rising inventory costs,Company A's gross profit and inventory turnover ratio,compared to Company B's,would be:

Correct Answer
verified

What is Nueva's gross profit ratio (rounded) if it elects FIFO?

Correct Answer
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Thompson's 2016 inventory turnover ratio is:

Correct Answer
verified

Exam 8: Inventories: Measurement

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2016. Missing information has been left blank. -Required: Compute the missing amounts.

Correct AnswerverifiedShow Answer

Company C is identical to Company D in every respect except that Company C uses LIFO and Company D uses average costs.In an extended period of rising inventory costs,Company C's gross profit and inventory turnover ratio,compared to Company D's,would be:

Correct AnswerverifiedShow Answer

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Denver uses LIFO and a periodic inventory system.

Correct AnswerverifiedShow Answer

Using the gross method,purchase discounts lost are:

Correct AnswerverifiedShow Answer

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Correct AnswerverifiedShow Answer

Under the gross method,purchase discounts taken are:

Correct AnswerverifiedShow Answer

Tiger Inc.adopted dollar-value LIFO on January 1,2016,when the inventory value was $360,000 and the cost index was 1.25.On December 31,2016,the inventory was valued at year-end cost of $395,000 and the cost index was 1.30.Tiger would report a LIFO inventory of:

Correct AnswerverifiedShow Answer

Briefly explain the advantages of dollar-value LIFO (DVL).

Correct AnswerverifiedDVL is less costly to apply than unit LI...View AnswerShow Answer

During periods when costs are rising and inventory quantities are stable,ending inventory will be:

Correct AnswerverifiedShow Answer

Ramen Inc.adopted dollar-value LIFO (DVL) as of January 1,2016,when it had a cost inventory of $600,000.Its inventory as of December 31,2016,was $667,800 at year-end costs and the cost index was 1.06.What was DVL inventory on December 31,2016?

Correct AnswerverifiedShow Answer

The ending inventory assuming FIFO is:

Correct AnswerverifiedShow Answer

What is Nu's net income if it elects FIFO?

Correct AnswerverifiedShow Answer

Udon Inc.adopted dollar-value LIFO (DVL) as of January 1,2016,when it had an inventory of $700,000.Its inventory as of December 31,2016,was $777,000 at year-end costs and the cost index was 1.05.What was DVL inventory on December 31,2016?

Correct AnswerverifiedShow Answer

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Random Creations uses average cost and a perpetual inventory system.

Correct AnswerverifiedPerpetual ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Assuming Northwest uses the gross method to record purchases,what is the cost of goods available for sale?

Correct AnswerverifiedShow Answer

Dollar-value LIFO eliminates the risk of LIFO liquidations.

Correct AnswerverifiedShow Answer

Company A is identical to Company B in every regard except that Company A uses FIFO and Company B uses LIFO.In an extended period of rising inventory costs,Company A's gross profit and inventory turnover ratio,compared to Company B's,would be:

Correct AnswerverifiedShow Answer

What is Nueva's gross profit ratio (rounded) if it elects FIFO?

Correct AnswerverifiedShow Answer

Thompson's 2016 inventory turnover ratio is:

Correct AnswerverifiedShow Answer

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DVL is less costly to apply than unit LI...
View Answer

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Perpetual ...
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