Raw materials inventories are the goods that a manufacturing company has completed and are ready to be sold to customers. Question 2
Goods held on consignment should be included in the consignor’ s ending inventory Question 3
If a company has no beginning inventory and the unit cost of inventory items does not change during the year, the value assigned to the ending inventory will be the same under LIFO and average cost flow assumptions
Question 4
The LIFO method is rarely used because most companies do not sell the last goods they purchase first. Question 5
The FIFO reserve is a required disclosure for companies that use FIFO. Question 6
Manufactured inventory that has begun the production process but is not yet completed is Question 7
Which of the following should not be included in the physical inventory of a company? Question 8
At December 31, 2014 Howell Company’ s inventory records indicated a balance of $ 858,000. Upon further investigation it was determined that this amount included the following: $ 168,000 in inventory purchases made by Howell shipped from the seller 12 / 27 / 14 terms FOB destination, but not due to be received until January 2nd $ 111,000 in goods sold by Howell with terms FOB destination on December 27 th. The goods are not expected to reach their destination until January 6 th. $ 9,000 of goods received on consignment from Westwood Company
What is Howell’ s correct ending inventory balance at December 31, 2014? Question 9
Noise Makers Inc has the following inventory data: |
July 1 |
Beginning inventory |
20 units at $ 19 |
$ 380 |
7 |
Purchases |
70 units at $ 20 |
1,400 |
22 |
Purchases |
10 units at $ 22 |
220 $ 2,000 |
A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the average cost method, the value of ending inventory is