Accounting 2010 Practice Questions and Correct Answers

If goods in transit are shipped FOB destination A. no one has legal title to the goods until they are delivered. B. the transportation company has legal title to the goods while the goods are in transit. C. the seller has legal title to the goods until they are delivered. D. the buyer has legal title to the goods until they are delivered. C Goods held on consignment are A included as part of no one's ending inventory. B never owned by the consignee. C included in the consignee's ending inventory. D kept for sale on the premises of the consignor. B Manufacturers usually classify inventory into all the following general categories except: A raw materials. B finished goods. C merchandise inventory. D work in process. C The LIFO inventory method assumes that the cost of the latest units purchased are A not allocated to cost of goods sold or ending inventory. B the first to be allocated to cost of goods sold. C the last to be allocated to cost of goods sold. D the first to be allocated to ending inventory. B Baker Bakery Company just began business and made the following four inventory purchases in June: June 1 150 units $1040 June 10 200 units 1560 June 15 200 units 1680 June 28 150 units 1320 $5600 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory (rounded to whole dollar) for June is A $1824. B $1508. C $1848. D $1456. A Atom Company just began business and made the following four inventory purchases in June: June 1 150 units $990 June 10 200 units 1344 June 15 200 units 1368 June 28 150 units 1062 $4764