ACCTG 211 Inventory Valuation

Which of the following assets must be reported at the  lower-of-cost-or-market value?

• AR
• Merchandise Inventory
• Prepaid Insurance
• Notes Receivable

Misty, Inc. had  24,000 units of ending inventory that were recorded at the cost of  $8.00 per unit using the FIFO method. The current replacement cost is  $4.50 per unit. Which of the following amounts would be reported as Ending Merchandise Inventory on the balance sheet using the  lower-of-cost-or-market rule?

• $192,000
• 
  ​$216,000
• 
  ​$108,000
• 
  ​$300,000

When a company uses the perpetual inventory​ method, which of the following would be the entry to adjust inventory to​ lower-of-cost-or-market?

• debit Merchandise Inventory and credit Cost of Goods Sold
• debit Loss on Inventory and credit Merchandise Inventory
• debit Merchandise Inventory and credit Inventory Adjustment
• debit Cost of Goods Sold and credit Merchandise Inventory

Which of the following is affected as a result of an error in performing the physical count of inventory at the end of the accounting​ period?

• sales revenue
• operating expenses
• net income
• net cost of purchases

Under the periodic inventory​ system, which of the following amounts will always stay the same regardless of the inventory valuation method​ used?

• purchases
• gross profit
• COGS
• ending merchandise inventory

A company that uses the periodic inventory system provided the following  information:
1/ Beginning inventory  $5,000
2. Purchases  $130,000
3. Purchase discounts  $2,000
4. Purchase returns and allowances  $600
At the end of the  period, the company does an inventory count and finds  $16,000 worth of inventory on hand. What is the amount of cost of goods  sold?

• 
  ​$132,400
• 
  ​$116,400
• 
  ​$148,400
• 
  ​$127,400

Which of the following amounts could differ if a​ company, using the LIFO inventory costing​ method, shifts from a periodic inventory system to a perpetual inventory​ system?

• ending merchandise inventory
• purchases
• sales revenue
• purchase returns