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