WorksheetsQuiz AKM IKI-7
Total questions: 10
Worksheet time: 5mins
What is the main difference between the inventory of a trading company and that of a manufacturing company?
The trading company has raw material inventory
The manufacturing company does not have finished goods in inventory
The manufacturing company records inventory only in one account
The trading company only has one type of inventory, while the manufacturing company has several types
The trading company has work-in-progress inventory
The main components in determining the value of inventory are?
Selling price and quantity of goods sold
Production cost and selling price
Physical unit quantity and acquisition cost per unit
Selling price and shipping cost
Acquisition cost and selling price
Which statement is true about the FIFO method?
The items purchased last will be sold first
The items purchased first will be the first to be sold
The cost of goods sold is determined based on the latest item prices
FIFO can only be applied in a perpetual inventory system
FIFO does not take into account the beginning inventory in its calculations
The inventory recording system that continuously updates the inventory balance every time a transaction occurs is?
Periodic system
Perpetual system
Consignment system
Specific identification system
Cost flow system
In the periodic system, inventory recording is done at?
Every time a transaction occurs
Every month
At the end of the accounting period
Only when there is a sale
Only when there is a purchase
Which statement is not included in inventory costs?
Transportation costs
Import taxes
Insurance during shipping
Purchase discounts received
Advertising costs for product promotion
According to the ownership provisions of goods based on FOB Shipping Point?
Ownership of the goods is transferred to the buyer when the goods are shipped
Shipping costs are borne by the seller
Ownership of the goods remains with the seller until the goods are received by the buyer
Inventory should not be recorded until the goods are received by the buyer
FOB Shipping Point only applies to domestic transactions
Why is the specific identification method inefficient for businesses with a large and varied inventory?
Requires a complicated recording system for each unit of goods
Does not reflect current market prices
Requires companies to sell goods in a specific order
Requires the use of a perpetual system
Cannot be used in financial reports
The inventory valuation method that uses the average cost per unit each time a purchase is made is?
FIFO
LIFO
Specific identification
Weighted average
Moving average
The cost of goods sold (COGS) can be calculated using the following formula?
Ending Inventory + Purchases - Beginning Inventory
Purchases + Beginning Inventory - Ending Inventory
Sales - Gross Profit
Purchases - Returns - Allowances
Sales price per unit × Number of units sold
