APF-CFASpace
Da Gui
CFA Level I
作答时间: 30 分钟
详解: 请观看视频 Practice Problems Reading 29 Inventories
29. Inventory
1
2
3
Inventory cost is least likely to include:
A. transportation costs of shipping inventory to customers
B. production-related storage costs
C. costs incurred as a result of normal waste of materials
Mustard Seed PI.C adheres to IFRS. It recently purchased inventory for
$100 million and spent $5 million for storage prior to selling the goods.
The
amount it charged to inventory expense($ millions) was closest to:
A. $95
B. $100
C. $105
Carrying inventory at a value above its historical cost would most likely
be permitted if:
A. financial statements were prepared using U.S. GAAP
B. the change resulted from a reversal of a previous write-down
C. the inventory was held by a producer of agricultural products
1
APF-CFASpace
4
5
6
7
Da Gui
CFA Level I
Cinnamon Corp. started business in 2007 and uses the weighted
average cost method. During 2007, it purchased 45,000 units of
inventory at $10 each and sold 40,000 units for $20 each. In 2008, it
purchased another 50,000 units at $11 each and sold 45,000 units for
$22 each. Its 2008 cost of sales($ thousands) was closest to: (periodic
inventory system)
A. 490
B. 495
C. 491
Like many technology companies, Tech Tools operates in an
environment of declining prices. Its reported profits will tend to be
highest if it accounts for inventory using the: (periodic inventory
system)
A. FIFO method
B. weighted average cost method
C. LIFO method
Zit AG wrote down the value of its inventory in 2007 and reversed the
write-down in 2008. Compared to the ratios that would have been
calculated if the
write-down had never occurred, Zit's reported 2007:
A. current ratio was too high
B. gross margin was too high
C. inventory turnover was too high
Compared to a company that uses the FIFO method, during periods of
rising prices a company that uses the LIFO method will most likely
appear more:
A. Liquid
B. Efficient
2
APF-CFASpace
8
9
Da Gui
CFA Level I
C. profitable
The costs least likely to be included by the CFO as inventory are:
A. storage costs for the chocolate liquor
B. excise taxes paid to the government of Brazil for the cacao beans
C. storage costs for chocolate and purchased finished goods awaiting
shipment to customers
Century Chocolate, based in Switzerland, manufactures chocolate
products and purchases and resells other confectionery products to
complement its chocolate line. Following data are from its financial
statements:
Income Statement
For years ended 31 December
2009
2008
Sales
95,290
93,248
Cost of sales
-41,043
-39,047
Marketing, administration & other
-35,318
-42,481
Profit before taxes
18,929
11,720
Taxes
-3,283
-2,962
Profit for the period
15,646
8,758
31 December
2009
2008
Cash, cash equivalents, and short-term
6,190
8,252
11,654
12,910
Inventories, net
8,100
7,039
Other current assets
2,709
2,812
Total current assets
28,653
31,013
expenses
Balance sheet
investments
Trade
receivables
and
related
accounts, net
3
APF-CFASpace
Da Gui
Property, plant, and equipment, net
18,291
19,130
Other non-current assets
45,144
49,875
Total assets
92,088
100,018
Trade and other payables
10,931
12,299
Other current liabilities
17,873
25,265
Total current liabilities
28,804
37,564
Non-current liabilities
15,672
14,963
Total liabilities
44,476
52,527
Share capital
332
341
Retained earnings and other reserves
47,280
47,150
Total equity
47,612
47,491
Total liabilities and shareholders’
92,088
100,018
CFA Level I
Equity
equity
In comparative ratio analysis, the 2009 inventory turnover ratio for
Century Chocolate is closest to:
A. 5.07
B. 5.42
C. 5.55
10 Century Chocolate prepares its financial statements in accordance with
IFRS. The most accurate statement regarding reasoning for requiring
selecting a competitor that reports under IFRS for comparative
purposes is that under U.S. GAAP:
A. fair values are used to value inventory
B. the specific identification method is permitted to value inventory
C. the LIFO method is permitted to value inventory
11 Difference between perpetual and periodic inventory systems is most
4
APF-CFASpace
Da Gui
CFA Level I
significant when which of the following costing systems is used?
A. LIFO
B. FIFO
C. Specific identification
12
Date
Cartons
Per
Unit
Amount
(CHF)
Beginning
100
22
inventory
4 Feb 09
Purchase
40
25
3 Apr 09
Sale
50
32
23 Jul 09
Purchase
70
30
16 Aug 09
Sale
100
32
9 Sep 09
Sale
35
32
15 Nov 09
Purchase
100
28
Using the inventory record for purchased lemon drops shown in
Exhibit, under FIFO method, the cost of sales for 2009 will be closest
to:
A. CHF 3,550
B. CHF 4,550
C. CHF 4,850
13 Century Chocolate net realizable value information for black licorice
jelly beans:
FIFO cost of inventory at 31 Dec (CHF)
2009
2008
314,89
374,870
0
Ending inventory at 31 Dec (Kilograms)
Cost per unit (CHF)
77,750
92,560
4. 05
4. 05
5
APF-CFASpace
Net
realizable
Da Gui
value
(CHF
per
4. 20
CFA Level I
3. 95
kilograms)
Ignoring any tax effect, the 2009 net realizable value reassessment for
the black licorice jelly beans will most likely result in:
A. an increase in gross profit of CHF 11,670
B. no impact on cost of sales because under IFRS, write-downs cannot
be reversed
C. an increase in gross profit of CHF 7,775
Company X uses FIFO for its inventory valuation and Company Y uses
LIFO under U.S.GAAP, all other respects are identical. If the prices are
rising, Company X is most likely to have a higher:
A. Tax liability
B. Inventory turnover
C. CFO
15 The following information is available about a manufacturing company:
14
$ million
Cost of ending inventory computed using FIFO
4.3
Net realizable value
4.1
Current replacement cost
3.8
If the company is using International Financial Reporting Standards
(IFRS), instead of U.S. GAAP, its cost of goods sold ($ millions) is
most likely:
A. the same
B. 0.3 lower
C. 0.3 higher
16 A company which prepares its financial statements using IFRS wrote
down its inventory value by €20,000 in 2009. In 2010, prices increased
and the same inventory was worth €30,000 more than its value at the
6
APF-CFASpace
Da Gui
CFA Level I
end of 2009. Which of the following statements is most accurate? In
2010, the company’s cost of sales:
A. was unaffected
B. decreased by €20,000
C. decreased by €30,000
17 A company’s information from its first year of operation is as follows:
2011
Event
Units
NZ$/unit
Opening inventory
0
0
Purchase #1
1,000
$22.50
Purchase #2
800
$25.00
Purchase #3
400
$25.50
Sales
1,700
$40.00
Using a periodic inventory system and the weighted average method,
the ending inventory value is closest to:
A. $11,975
B. $12,165
C. $12,700
18 A review of a company’s inventory records for the year indicates that
the following costs were incurred:
Fixed production overhead:
Direct material and direct labor:
Storage costs incurred during production:
Abnormal waste costs:
$500,000
300,000
25,000
30,000
If the company operated at full capacity during the year, the total
capitalized inventory cost is closest to:
A. $800,000
B. $825,000
C. $855,000
7
APF-CFASpace
19
Da Gui
CFA Level I
A company incurs the followings costs related to its inventory during
the year:
Cost
Purchase price
Trade discounts
¥ millions
100,000
5,000
Import duties
20,000
Shipping of raw materials to
10,000
manufacturing facility
Manufacturing conversion costs
Abnormal costs as a result of waste
50,000
8,000
material
Storage cost prior to shipping to
2,000
customers
The amount charged to inventory cost (in millions) is closest to:
A. ¥175,000
B. ¥177,000
C. ¥185,000
20 A company that reports under U.S.GAAP and changes its inventory
cost assumption from weighted average cost to LIFO is required to
apply this change in accounting principle:
A. retrospectively, and disclose the new cost flow method being used
B. prospectively, and explain the reasons for the change in the
financial statement disclosures
C. retrospectively, and explain the reasons for the change in the
financial statement disclosures
8