SUPA Acc 151 Chap 6 Cost of Inventory Methods

What does the following formula calculate:

C.O.G. Available / # of Units Avail. = ?

• LIFO

• AVERAGE COST

• FIFO

• COGS

C.O.G. available is calculated by:

• COG on hand minus ending inventory

• Beginning inventory minus purchases

• COGS + ending inventory

• Beginning inventory + purchases

Cost of Goods Sold (COGS) is calculated many different ways. One way is:

• COG available minus ending inventory

• COG available plus ending inventory

• Purchases minus COG available

• Purchases plus COG available

One of the inventory costing methods is F.I.F.O. In this costing methods the ______________ is the main factor for calculating COGS.

• newest inventory

• oldest inventory

• average cost of the inventory on hand

• average cost of the sold inventory

The calculation of the cost of the newest inventory is used in which of the following inventory cost methods:

• Average-Cost

• FIFO

• LIFO

• none of the above

The following is the calculation for GROSS PROFIT = ?

• Sales Revenue minus Operating costs

• Sales Revenue plus Expenses

• Sales Revenue plus Gross margin

• Sales Revenue minus Cost of Goods Sold

When you take the starting inventory plus newly purchased inventory less the cost of goods sold you will get the

• gross profit

• ending inventory

• average inventory

• none of the above

The system where a company can only count its inventory at the END of the fiscal period is:

• Perpetual inventory system

• Periodic inventory system

The system where a company has an ongoing count of its inventory is:

• Perpetual inventory system

• Periodic inventory system

The calculation: revenue minus C.O.G.S. provides which of the following

• cost per unit under average

• Net Income

• Gross Profit

• Sales Revenue