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WorksheetsOMT101_Quiz2
Total questions: 35
Worksheet time: 2hrs 31mins
Current assets
Investments
Property, plant, and equipment
Intangible assets
First In, First Out
Last In, First Out
Retail
Weighted-Average
First In, First Out
Last In, First Out
Weighted Average
All of these
Supplier
Seller
Consignor
Consignee
Maintaining Enough Inventory, as an Essential Element in Managing Inventory, means
When calculating basic stock, you must also factor in lead time -- the length of time between reordering and receiving a product.
Once you understand which items are most important, you'll be able to balance needs with costs, carrying only as much as you need of a given item.
set a realistic safety margin and order only what you're sure you can sell.
It will tell you what merchandise is in stock, what is on order, when it will arrive and what you've sold.
Avoiding Excess Inventory, as an Essential Element in Managing Inventory, means
When calculating basic stock, you must also factor in lead time -- the length of time between reordering and receiving a product.
Once you understand which items are most important, you'll be able to balance needs with costs, carrying only as much as you need of a given item.
set a realistic safety margin and order only what you're sure you can sell.
It will tell you what merchandise is in stock, what is on order, when it will arrive and what you've sold.
Inventory and Cash Flow, as an Essential Element in Managing Inventory, means
When calculating basic stock, you must also factor in lead time -- the length of time between reordering and receiving a product.
Once you understand which items are most important, you'll be able to balance needs with costs, carrying only as much as you need of a given item.
set a realistic safety margin and order only what you're sure you can sell.
It will tell you what merchandise is in stock, what is on order, when it will arrive and what you've sold.
Tracking Inventory, as an Essential Element in Managing Inventory, means
When calculating basic stock, you must also factor in lead time -- the length of time between reordering and receiving a product.
Once you understand which items are most important, you'll be able to balance needs with costs, carrying only as much as you need of a given item.
set a realistic safety margin and order only what you're sure you can sell.
It will tell you what merchandise is in stock, what is on order, when it will arrive and what you've sold.
POS (Point of Sale System) Includes the following Features except:
Updating product information.
Sales tracking options.
Taxes.
Purchase of software
POS software records each sale when it happens, so your inventory records are always up-to-date.
TRUE
FALSE
Inventories shall be measured at the lower of cost and net realizable value. Cost includes:
costs of purchase
costs of conversion
costs incurred in bringing the inventories to their present location and condition
All of these
Inventories shall be measured at the lower of cost and net realizable value. Net Realizable value is
the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated cost necessary to make the sale
equal to cost of sales
the forecasted selling price of the inventory
None of these
Inventory cost would include the “carrying costs” like interest charges (if money was borrowed to buy an equipment)
TRUE
FALSE
In Perpetual Inventory System, the inventory account and the cost of goods sold account are updated at the end of a set period—this could be once a month, once a quarter, or once a year.
TRUE
FALSE
Perpetual system keeps track of inventory balances continuously, with updates made automatically whenever a product is received or sold.
TRUE
FALSE
In Perpetual Inventory System, real-time information about Inventory and Cost of sales is provided whereas the Periodic Inventory System provides information about Inventory and Cost of goods sold.
TRUE
FALSE
In Periodic Inventory System, there is no interference in the regular workflow at the time of stock taking and verification while in Perpetual Inventory System, the regular business operations may have to be stopped.
TRUE
FALSE
The Periodic Inventory System is based on book records while Perpetual Inventory System, takes physical verification as its base.
TRUE
FALSE
Manufacturer normally keeps inventories such as the following, except:
raw materials and purchased parts
work in progress: goods not yet ready for sale
finished goods
merchandise inventory
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual FIFO, What is the cost of the Beginning inventory?
$1000
$1050
$1020
$1010
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual FIFO, What is the cost of the Ending inventory?
$1200
$1250
$1120
$1210
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual FIFO, What is the cost of goods sold?
$2950
$3000
$2850
$2750
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual FIFO, What is the cost of purchases?
$3150
$3000
$2850
$2750
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual LIFO, What is the cost of purchases?
$3150
$3000
$2850
$2750
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual LIFO, What is the cost of goods sold?
$3150
$3000
$2850
$2750
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual LIFO, What is the cost of the Beginning inventory?
$1000
$1050
$1020
$1010
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual LIFO, What is the gross profit?
$1050
$1000
$1020
$1010
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual FIFO, What is the gross profit?
$1250
$1150
$1020
$1010
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual FIFO, What is the net sales?
$4200
$4150
$4120
$4130
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual Weighted Average Costing Method, What is the net sales?
$4200
$4150
$4120
$4130
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual Weighted Average Costing Method, What is the cost of goods available for sale?
$4200
$4150
$4120
$4130
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual Weighted Average Costing Method, What is the average unit cost?
$11.07
$12.01
$10.59
$10.97
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual Weighted Average Costing Method, What is the cost of goods sold?
$3043.33
$3055
$3500
$3012
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of perpetual Weighted Average Costing Method, What is the gross profit?
$1156.67
$1166.67
$1177.67
$1188.67
Ace Company began April with $1,000 of inventory, consisting of 100 units at $10 each. The following additional transactions occurred during the month:
April 5, purchased 150 units at $11 each
April 9, sold 200 units for $15 each
April 17, purchased 125 units at $12 each
April 26, sold 75 units for $16 each
Assuming use of WAC, FIFO, or LIFO, what is the total number units available for sale?
375
400
370
380
