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INVENTORY TEST

Total questions: 10

Worksheet time: 4mins

Name
Class
Date
1.

In a manufacturing business, inventory that is ready for sale is called:

a)

Raw materials

b)

Work in process

c)

Finished goods

d)

Store supplies

2.

This refers to items that the manufacturer has purchased or produced to use in manufacturing a product.

( Một thứ được mua hoặc được sản xuất để sử dụng trong quá trình tạo ra sản phẩm)

a)

Raw material

b)

Work in process

c)

Finished goods

d)

All incorrect

3.

Bud's Place recorded the following data:

Date Units Cost

1/1 Inventory 500 per $2.40

1/8 Purchased 1,000 per $3.00

1/12 Sold 1,200

The weighted average unit cost of the inventory at January 31 is:

a)

$2.40

b)

$2.70

c)

$2.80

d)

$3.402

4.

Cost of goods sold is calculated from the following equation:

a)

Beginning inventory – cost of goods purchased + ending inventory

b)

Sales – cost of goods purchased + beginning inventory – ending inventory

c)

Sales + gross profit – ending inventory + beginning inventory

d)

Beginning inventory + cost of goods purchased – ending inventory

5.

A company purchased inventory as follows:

150 units at $6

350 units at $7

The average unit cost for inventory is

a)

$6.00

b)

$6.50

c)

$6.70

d)

$7.00

6.

Pasquale has the following inventory information.

July 1 Beginning Inventory 20 units at $19

July 7 Purchases 70 units at $20

July 22 Purchases 10 units at $24

A physical count of merchandise inventory on July 31 reveals that there are 30 units on hand. Using the average-cost method, the value of ending inventory is:

a)

$585

b)

$606

c)

$630

d)

$660

7.

Which of the following is not an inventory:

a)

Machines

b)

Raw materials

c)

Finished Product

d)

Consumable tools

8.

In a period of falling prices, which inventory method generally provides the lowest amount of net income?

a)

Weighted average

b)

Moving average

c)

FIFO

d)

Specific identification

9.

The amount of any writedown of inventory to net realizabled value and all losses of inventory shall be:

a)

Recognized  as  operating  expense  in  the  period  the  writedown  or  loss occurs

b)

Recognized as other expense in the period the writedown or loss occurs

c)

Recognized  as  component  of  cost  of  goods  sold  in  the  period  the writedown or loss occurs

d)

Deferred until the related inventory is sold

10.

The company sold 10 items at the end of each month.

Assuming the FIFO periodic cost flow assumption, what will be the company's cost of goods sold for the 120 items sold in 2022?

a)

$1,380

b)

$1,386

c)

$1,410

d)

$1,460