Not what you're looking for?
Fundamental Accounting Principles
Which of the following inventory costing methods will always result in the same values for ending inventory and cost of goods sold regardless of whether a perpetual or periodic inventory system is used?
FIFO and LIFO.
LIFO and weighted-average cost.
specific identification and FIFO.
FIFO and weighted-average cost.
On December 31 of the current year, Hewett Company reported an ending inventory balance of $215,000. The following additional information is also available:
Hewett sold goods costing $38,000 to Trump Enterprises on December 28 and shipped the goods on that date with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $215,000 because they were not in Hewett's warehouse.
Hewett purchased goods costing $44,000 on December 29. The goods were shipped FOB destination and were received by Hewett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $215,000.
Hewett's ending inventory balance of $215,000 included $15,000 of goods being held on consignment from Rumsfeld Company. (Hewett Company is the consignee.)
Hewett's ending inventory balance of $215,000 did not include goods costing $95,000 that were shipped to Hewett on December 27 with shipping terms of FOB destination and were still in transit at year-end. Based on the above information, the correct balance for ending inventory on December 31 is:
Goods in transit are included in a purchaser's inventory:
at any time during transit.
when the purchaser is responsible for paying freight charges.
when the supplier is responsible for freight charges.
if the goods are shipped FOB destination
Regardless of the inventory costing system used, cost of goods available for sale must be allocated between:
beginning inventory and net purchases during the period.
ending inventory and beginning inventory.
net purchases during the period and ending inventory.
ending inventory and cost of goods sold.
Purchase this Solution
The solution answers various Fundamental Accounting Principles questions.
1 - specific identification and FIFO.
2 - Goods sold F.O.B. destination do not belong to the purchaser until they arrive at their final destination. Goods sold F.O.B. ...
Purchase this Solution
Free BrainMass Quizzes
The Fundamental Classified Balance Sheet. What to know to make it easy.
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
This quiz will help you better understand Situational Leadership and its theories.
This tests some key elements of major motivation theories.