ACCT 212 FINANCIAL ACCOUNTING WEEK FIVE QUIZ

Question: Which cost flow assumption generally results in the highest … amount of net income in periods of rising inventory costs? 2. Question: Which cost flow assumption must … for financial reporting if it is also used for tax reporting? 3. Question: Under a perpetual inventory system: 4. Question: Dunbar sold 600 units of inventory during the month. Ending inventory assuming LIFO would … : (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.) (450 + 340) – 600 = 190 x $2.18 = $414 5. Question: Dunbar sold 610 units of inventory during the month. Ending inventory assuming weighted-average cost would be: (Round weighted-average unit cost to 4 decimal places and final answer to the nearest dollar amount.) Weighted-average cost = [(600 x $2.36) + (320 x $2.69)]/920 [(1,416) + (860.80)]/920 2.4748 x 310 $767 6. Question: What is the cost of goods sold for Julia & Company assuming it uses LIFO? (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.) 7. Question: Marvin sold 1,910 units of inventory during the month. Cost of goods sold assuming FIFO would be: (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.) 8. Question: A company’s sales equal $60,000 and cost of goods sold equals $20,000. Its beginning inventory was $1,600 and its ending inventory is $2,400. The company’s inventory turnover ratio equals: 9. Question: Anthony’s average days in inventory is: (Round to the nearest whole day.) Net Sale/Average Accounts Receivable = Receivable Turn Over Ratio ($138,000/$50,000) = 2.76 Average collection period = 365 days/Receivable Turn Over Ratio (365/2.76) = 132.2 days