(A2) 2.01-2.02 Inventory - Chapter 5 Spring 2023 Student Class Date 1. Drive 'n Go Motors sells used cars. Inventory is continuously updated as vehicles are purchased and sold. What type of inventory control system does Drive 'n Go use? A. B. C. D. periodic perpetual product profitable 2. The Hometown Hardware store sells hardware supplies. After computing the ending inventory, the owners realized that their inventory valuation is significantly higher than the replacement cost. In order to reflect a more conservative valuation of ending inventory, which method will Hometown Hardware most likely use? A. B. C. D. last in, first out first in, first out weighted average lower of cost or market 3. Carlee Jones has many gently used prom dresses. Dresses for You, a consignment shop, has agreed to sell Carlee's dresses on her behalf. The role of Dresses for You in this transaction is the: A. B. C. D. consignee. consignor. lessee. lessor. 4. The Furniture Company makes beds out of oak wood. They are purchasing oak that has to be shipped from California. If the company selling the oak pays for the transportation charges, how will the shipment be classified? A. B. C. D. FOB FOB FOB FOB department store shipping point destination transit (A2) 2.01-2.02 Inventory - Chapter 5 Page 1 / 19 5. The Bead Boutique offers handcrafted jewelry for sale. In the weeks prior to Mother's Day, the owner purchased beads, strings, and clasps from a company in Maine to make the store's inventory. If the company in Maine pays for the shipping charges, how will the shipment be classified? A. B. C. D. FOB FOB FOB FOB buyer shipping point destination transit 6. The Bead Boutique offers handcrafted jewelry for sale. In the weeks prior to Mother's Day, many customers visited the store and purchased items to be delivered as gifts. If the shipments are paid for by the buyer, how will the shipments be classified? A. B. C. D. FOB FOB FOB FOB receiver shipping point destination transit 7. Drive 'n Go Motors sells used cars. Inventory is continuously updated as vehicles are purchased and sold. Additionally, the cost of each car is separately accounted for when computing the ending inventory. What type of inventory control method does Drive 'n Go use? A. B. C. D. specific identification weighted average first in, first out last in, last out 8. The Hometown Hardware store sells hardware supplies. Included in the inventory are boards, nails, screws, and tools. These items were purchased throughout the year at differing prices. The owner assigns a median cost to each item in inventory. What type of inventory control method does the Hometown Hardware use? A. B. C. D. last in, first out first in, first out weighted average specific identification 9. A company uses a perpetual inventory system when inventory items are sold. After the company makes the journal entry that debits Cash and credits Sales, which (A2) 2.01-2.02 Inventory - Chapter 5 Page 2 / 19 account is debited in the second journal entry? A. B. C. D. Cost of Goods Sold Purchases Inventory Sales 10. The Bead Boutique offers handcrafted jewelry for sale. The owner counts inventory only once per year. What type of inventory control system does the Bead Boutique use? A. B. C. D. periodic perpetual product profitable 11. The Bead Boutique offers handcrafted jewelry for sale. Included in inventory are numerous beads, clasps, and necklace strings that were purchased throughout the year from different vendors. The owner assumes that the items left in ending inventory are the first ones purchased. What type of inventory control method does the Bead Boutique use? A. B. C. D. specific identification weighted average first in, first out last in, first out 12. Review the table of information below. (A2) 2.01-2.02 Inventory - Chapter 5 Page 3 / 19 Todd's Turbo Repair had the given beginning inventory and purchases for oil filters, stock number P125. At the end of the year, 400 units remained in ending inventory. Based on the information provided, what is the value of the ending inventory using the weighted average method? A. B. C. D. $2,835.25 $2,962.50 $2,985.71 $3,087.50 13. Review the table of information below. Todd's Turbo Repair had the given inventory and purchases for oil filters, stock number P125. At the end of the year, 400 units remained in ending inventory. What is the Cost of Goods Sold using the LIFO method? A. B. C. D. $875.00 $933.00 $1,000.00 $1,005.00 14. In the following scenario, Kevin’s Kites has the given beginning inventory and purchases for Wind Rover Kite, stock number XJH. At the end of the year, 27 units remained in ending inventory. The market price for these kites was $28.00 per kite as of December 31. (A2) 2.01-2.02 Inventory - Chapter 5 Page 4 / 19 Based on the information provided, what is the amount of ending inventory using the lower of cost or market computed under the weighted average method? A. B. C. D. $848.00 $756.00 $704.25 $675.00 15. Review the table of information below. Polly's Puppy Palace has the given beginning inventory and purchases for doggy bubble bath, stock number XXJH. At the end of the year, 250 units remained in ending inventory. Based on this information, what is the value of the ending inventory under the LIFO method? A. B. C. D. $1,400 $1,475 $1,575 $1,750 16. Review the table of information below. (A2) 2.01-2.02 Inventory - Chapter 5 Page 5 / 19 Wayne's Well Drilling had the given beginning inventory and purchases for power switches, stock number 2245. At the end of the year, 700 units remained in ending inventory. What is the value of the ending inventory using the FIFO method? A. B. C. D. $6,300.00 $6,496.00 $6,800.00 $7,300.00 17. Review the table of information below. Wayne's Well Drilling had the given beginning inventory and purchases for power switches, stock number 2245. At the end of the year, 700 units remained in ending inventory. What is the Cost of Goods Sold using the weighted average method? A. B. C. D. $26,100.00 $26,550.00 $26,912.00 $27,100.00 (A2) 2.01-2.02 Inventory - Chapter 5 Page 6 / 19 18. Refer to the table of information below. Susie's Sweets had the given beginning inventory and purchases for ice cream cakes, stock number J996. At the end of the year, 800 units remained in ending inventory. What is the Cost of Goods Sold under the weighted average method? A. B. C. D. $5,900.00 $6,789.00 $7,260.00 $9,100.00 19. Review the table of information below. Wayne's Well Drilling had the given beginning inventory and purchases for power switches, stock number 2245. At the end of the year, 700 units remained in ending inventory. What is the value of the ending inventory under the weighted average method? (A2) 2.01-2.02 Inventory - Chapter 5 Page 7 / 19 A. B. C. D. $6,300.00 $6,496.00 $6,800.00 $7,300.00 20. Review the table of information below. Todd's Turbo Repair had the given beginning inventory and purchases for oil filters, stock number P125. At the end of the year, 400 units remained in ending inventory. What is the value of the ending inventory using the FIFO method? A. B. C. D. $3,043.75 $2,985.71 $2,962.50 $2,950.00 21. Refer to the table of information below. (A2) 2.01-2.02 Inventory - Chapter 5 Page 8 / 19 Mike's Military Surplus had the given beginning inventory and purchases for combat fatigues, stock number USA1. At the end of the year, 270 units remained in ending inventory. The market price for these uniforms was $16.00 per pair as of December 31. Based on the information provided, what is the value of the ending inventory using the lower of cost or market computed under the LIFO method? A. B. C. D. $4,090.00 $4,320.00 $4,573.13 $5,040.00 22. Review the table of information below. Mike's Military Surplus had the given beginning inventory and purchases for combat fatigues, stock number USA1. At the end of the year, 270 units remained in ending inventory. The market price for these uniforms was $16.00 per pair as of December 31. What is the value of the ending inventory using the lower of cost or market computed using the FIFO method? (A2) 2.01-2.02 Inventory - Chapter 5 Page 9 / 19 A. B. C. D. $4,090.00 $4,320.00 $4,573.13 $5,040.00 23. Review the table of information below. Dorothy's Dress Shop had the given beginning inventory and purchases for dyeable dress pumps, stock number LL123. At the end of the year, 32 units remained in ending inventory. The market price for these shoes was $25.00 per pair as of December 31. What is the value of ending inventory using the lower of cost or market computed under the LIFO method? A. B. C. D. $704.00 $800.00 $835.20 $864.00 24. Review the table of information below. (A2) 2.01-2.02 Inventory - Chapter 5 Page 10 / 19 Mike's Military Surplus had the given beginning inventory and purchases for combat fatigues, stock number USA1. At the end of the year, 270 units remained in ending inventory. The market price for these uniforms was $16.00 per pair as of December 31. What is the value of the ending inventory using the lower of cost or market computed using the weighted average method? A. B. C. D. $3,940.00 $4,090.00 $4,320.00 $4,573.13 25. Review the table of information below. Todd's Turbo Repair had the given beginning inventory and purchases for oil filters, stock number P125. At the end of the year, 400 units remained in ending inventory. What is the Cost of Goods Sold using the weighted average method? A. $875.00 (A2) 2.01-2.02 Inventory - Chapter 5 Page 11 / 19 B. $932.50 C. $1,000.00 D. $1,005.50 26. Review the table of information below. Dorothy's Dress Shop had the given beginning inventory and purchases for dyeable dress pumps, stock number LL123. At the end of the year, 32 units remained in ending inventory. The market price for these shoes was $25.00 per pair as of December 31. Based on the information provided, what is the value of the ending inventory using the lower of cost or market computed under the FIFO method? A. B. C. D. $704.00 $800.00 $835.20 $864.00 27. Review the following table. Kevin’s Kites has the given beginning inventory and purchases for Wind Rover Kite, stock number XJH. At the end of the year, 27 units remained in ending inventory. The market price was $28.00 per kite as of December 31. What is the amount of (A2) 2.01-2.02 Inventory - Chapter 5 Page 12 / 19 ending inventory using the LIFO method? A. B. C. D. $848.00 $756.00 $704.25 $675.00 28. Review the table of information below. Wayne's Well Drilling had the given beginning inventory and purchases for power switches, stock number 2245. At the end of the year, 700 units remained in ending inventory. What is the value of the ending inventory using the LIFO method? A. B. C. D. $6,300.00 $6,496.00 $6,800.00 $7,300.00 29. In the scenario below, Polly’s Puppy Palace had the given beginning inventory and purchases for Doggy Bubble Bath, stock number XXJH. At the end of the year, 250 units remained in ending inventory. (A2) 2.01-2.02 Inventory - Chapter 5 Page 13 / 19 Based on this information, what is the Cost of Goods Sold under the LIFO method? A. B. C. D. $1,400.00 $1,575.00 $1,600.00 $1,750.00 30. Review the table of information below. Todd's Turbo Repair had the given beginning inventory and purchases for oil filters, stock number P125. At the end of the year, 400 units remained in ending inventory. What is the Cost of Goods Sold using the FIFO method? A. $875.00 B. $933.00 C. $1,000.00 (A2) 2.01-2.02 Inventory - Chapter 5 Page 14 / 19 D. $1,005.00 31. Review the information in the table below. Wayne's Well Drilling had the given beginning inventory and purchases for power switches, stock number 2245. At the end of the year, 700 units remained in ending inventory. What is the Cost of Goods Sold under the FIFO method? A. B. C. D. $26,100.00 $26,550.00 $26,905.56 $27,100.00 32. Review the table of information below: (A2) 2.01-2.02 Inventory - Chapter 5 Page 15 / 19 Susie's Sweets had the given inventory and purchases for ice cream cakes, stock number J996. At the end of the year, 800 units remained in ending inventory. What is the Cost of Goods Sold using the LIFO method? A. B. C. D. $6,789.00 $7,500.00 $7,525.81 $9,100.00 33. Review the table of information below. Dorothy's Dress Shop had the given beginning inventory and purchases for dyeable dress pumps, stock number LL123. At the end of the year, 32 units remained in ending inventory. The market price for these shoes was $25.00 per pair as of December 31. What is the value of the ending inventory using the lower of cost or market computed using the weighted average method? A. B. C. D. $704.00 $800.00 $835.20 $864.00 34. Review the information in the table below. (A2) 2.01-2.02 Inventory - Chapter 5 Page 16 / 19 Polly's Puppy Palace has the given beginning inventory and purchases for doggy bubble bath, stock number XXJH. At the end of the year, 250 units remained in ending inventory. Based on this information, what is the value of the ending inventory using the FIFO method? A. B. C. D. $1,400.00 $1,475.00 $1,575.00 $1,750.00 35. Refer to the table of information below. Susie's Sweets had the given beginning inventory and purchases for ice cream cakes, stock number J996. At the end of the year, 800 units remained in ending inventory. Based on this information, what is the Cost of Goods Sold under the FIFO method? (A2) 2.01-2.02 Inventory - Chapter 5 Page 17 / 19 A. B. C. D. $6,789.00 $6,850.00 $7,525.81 $9,100.00 36. Review the table of information below. Wayne's Well Drilling had the given beginning inventory and purchases for power switches, stock number 2245. At the end of the year, 700 units remained in ending inventory. What is the Cost of Goods Sold using the LIFO method? A. B. C. D. $26,100.00 $26,550.00 $26,905.56 $27,100.00 37. Refer to the table of information below. (A2) 2.01-2.02 Inventory - Chapter 5 Page 18 / 19 Todd's Turbo Repair had the given beginning inventory and purchases for oil filters, stock number P125. At the end of the year, 400 units remained in ending inventory. What is the value of the ending inventory using the LIFO method? A. B. C. D. $3,087.50 $2,918.75 $2,905.71 $2,900.00 (A2) 2.01-2.02 Inventory - Chapter 5 Page 19 / 19
