A2 2.00 - Exam Review Game

The Bead Boutique offers handcrafted jewelry for sale. In the weeks prior to Mother's Day, many customers visited the store and purchased items to be delivered as gifts. If the shipments are paid for by the buyer, how will the shipments be classified?

• FOB receiver
• FOB shipping point
• FOB destination
• FOB transit

The Bead Boutique offers handcrafted jewelry for sale. Included in inventory are numerous beads, clasps, and necklace strings that were purchased throughout the year from different vendors. The owner assumes that the items left in ending inventory are the first ones purchased. What type of inventory control method does the Bead Boutique use?

• specific identification
• weighted average
• first in, first out
• last in, first out

A company uses a perpetual inventory system when inventory items are sold. After the company makes the journal entry that debits Cash and credits Sales, which account is debited in the second journal entry?

• Cost of Goods Sold
• Purchases
• Inventory
• Sales

Todd's Turbo Repair had the given beginning inventory and purchases for oil filters, stock number P125. At the end of the year, 400 units remained in ending inventory. What is the Cost of Goods Sold using the weighted average method?

• $875.00

• $932.50

• $1,000.00

• $1,005.50

Daisy Designs needs to estimate ending inventory for interim financial statements. The following information is available: Sales, $80,500, Beginning Inventory, $40,750, Net Purchases, $27,500, Gross Profit, 47%. Based on this information, what is the estimated ending inventory using the gross profit method?

• $19,152

• $25,585

• $42,665

• $68,250

The Royal Jewelry Company needs to estimate ending inventory for interim financial statements. The beginning inventory at cost is $54,550 and at retail is $104,500, net purchases at cost are $49,500 and at retail are $95,500, and retail sales to date are $140,500. Based on this information, what is the estimated ending inventory for the Royal Jewelry Company?

• $29.500

• $30,940

• $42,660

• $44,500

The HomeMax Company needs to estimate ending inventory for interim financial statements. The following information is available: beginning inventory at cost, $67,000, at retail, $135,000, net purchases at cost, $35,500, at retail, $70,000, retail sales to date, $135,500. Based on this information, what is the estimated ending inventory using the retail method?

• $35,500

• $35,000

• $34,750

• $27,750

Using the information from Figure 2.02-B, Mike's Military Surplus had the given beginning inventory and purchases for combat fatigues, stock number USA1. At the end of the year, 270 units remained in ending inventory. The market price for these uniforms was $16.00 per pair as of December 31. Based on the information provided, what is the value of the ending inventory using the lower of cost or market computed under the LIFO method?

• $4,090.00

• $4,320.00

• $4,573.13

• $5,040.00

Using the information from Figure 2.02-C, Todd's Turbo Repair had the given inventory and purchases for oil filters, stock number P125. At the end of the year, 400 units remained in ending inventory. What is the Cost of Goods Sold using the LIFO method?

• $875

• $933

• $1,000

• $1,005

Using the information from Figure 2.02-A, Todd's Turbo Repair had the given beginning inventory and purchases for oil filters, stock number P125. At the end of the year, 400 units remained in ending inventory. What is the Cost of Goods Sold using the FIFO method?

• $875

• $933

• $1,000

• $1,005