Accounting 2 - Unit 2 Merchandise Inventory

The ratio that measures how rapidly merchandise inventory is sold

When recording the journal entries for the purchase and sale of inventory items, the only major difference in amount is

You can find merchandise inventory on which financial statement?

Which inventory costing method assigns to ending merch inventory the newest-most recent-costs incurred during the period

If you have 10 items in inv that cost $50 and you purchase 10 more for $55, what is COGS if you sell 12 and use FIFO?

Weighted average lets companies pay the lowest income taxes when inventory costs are rising.

You can find Cost of Goods Sold (COGS) on which financial statement?

Many companies prefer high income in order to attract investors. FIFO offers this benefit in a period of rising costs.

The costing method best for businesses that sell unique, easily identified inventory items, such as automobiles.

The business should report the least favorable figures in the Fin Stmts when two or more possible options are presented.

If the historical cost is less than its replacement cost, the business must adjust the inventory value.

Look at image below. Assume ending inventory was accidentally overstated by $2,000. If corrected, what would COGS be?

Weighted average cost of an item in inventory changes when

If a companies inventory turnover is 5 times per year, then its day's sales in inventory is

The number of units on hand X Unit Cost =

Company must perform strictly proper acctg only for items that are significant to the business's financial situation.

If a company sells 20 items for $20 and the items have a weighted average cost of $9 each, what is the gross profit?

If Ending Merchandise Inventory is overstated by $5,000, Net Income will

Regarding Days Sales in Inventory, which company has the best results?

At the end of each year, companies can choose which inventory method works best for them in that given year.