Inventories and Agriculture

For government entities, inventories are assets (choose the incorrect one)

• Held for sale, consumption, distribution, or exchange.

• In the process of production for sale, consumption, distribution or exchange.

• In the form of materials or supplies to be consumed in the production process or in the rendering of services.

• Used in the production of goods.

Entity A, a government entity, purchases office supplies. Entity A would most likely record the purchase

• by debiting the Purchases account

• as Inventory Held for Consumption

• as Inventory Held for Distribution

• by debiting the Office Supplies Expense account

Who owns the goods in transit under FOB shipping point?

• buyer

• seller

• either a or b

• none

Which of the following documents is prepared when issuing semi-expendable property to end-users?

• Requisition and Issue Slip (RIS)

• Inventory Custodian Slip

• Supplies Ledger Card (SLC)

• Waste Materials Report

The carrying amount of inventory is not recognized as expense in this type of event or transaction.

• The inventory is sold.

• The inventory is used in the production of another asset.

• The inventory is consumed by end users in providing service.

• The inventory is written-off.

Which of the following is subsequently measured at the lower of cost and current replacement cost?

• Inventories held for sale

• Inventories held for distribution

• Inventories that are undergoing manufacturing process for completion as finished goods for sale.

• None of these.

The supply or property office of a government entity uses this to record and monitor the movements and balances of inventories.

• Stock Card

• Inventory Listing

• Stock Ledger Card

• Registry of Inventory

Entity A's cost of sales is

• 465,000

• 475,000

• 505,000

• 585,000

Entity A's cost of sales for the year is

• 257,000

• 260,500

• 261,000

• 269,500

How much is the ending inventory on July 31?

• 153,400

• 156,912

• 158,736

• Answer cannot be determined due to insufficient information