Question 7 3 pts Inventory costing procedures used by businesses are the same in all countries. True False Question 8 3 pts A weighted average approach to costing inventory most naturally fits operations that involve differentiated products of high unit value. True False Question 9 3 pts Merchandise inventory as the inventory of goods that a merchandising company buys from a manufacturing company and makes available for sale to its customers. True False Question 10 3 pts The raw materials inventory includes raw materials and components that have been purchased for use in the production of a product but that have not yet been placed into the production process. True False Question 11 4 pts Which of the following is not an inventory account for manufacturing companies? Finished goods Work-in-process Cost of goods sold Raw materials The weighted average cost method is used by Garcia, Inc. Sales are $160,000, the number of units available for sale is 100, the number of units sold during the period is 75, and the weighted average cost of the goods available for sale is $400 each. How much is gross profit for the company? $ 20,000 $130,000 $ 40,000 $ 30,000 Question 13 4 pts The weighted average cost method is used by Gomez, Inc. Sales are $320,000, the number of units available for sale is 100, the number of units sold during the period is 75, and the weighted average cost of the goods available for sale is $800 each. How much is gross profit for the company? $ 40,000 $ 80,000 $260,000 $ 60,000 Question 14 4 pts Assuming rising prices, which method will give the highest dollar value for cost of goods sold on the income statement? B) Average Cost All of these give equal values for cost of goods sold A) FIFO C) LIFO Question 15 4 pts The following data refer to Jacket Company's ending inventory: Item code Quantity Unit Cost Unit Market Small 100 $114 $116 Medium 420 88 Large 600 88 Extra-Large 220 134 128 How much is the inventory if the lower of cost or market rule is applied to each item of inventory? None of the above $126,320 $121,880 $132.720 Question 16 4 pts The following data refer to Bear Company's ending inventory: Item code Quantity Unit Cost Unit Market Small 100 $228 $232 Medium 420 1 52 Large 600 168 Extra-Large 220 How much is the inventory if the lower of cost or market rule is applied to each item of inventory? $252,640 $265,440 $243,760 None of the above Question 17 5 pts The following hammers were available for sale during the year for Waiculus Tools: Beginning inventory ... 10 units at $ 80 First purchase....... 15 units at $100 Second purchase....... 30 units at $120 Third purchase ............ 25 units at $130 Waiculus has 30 hammers on hand at the end of the year. What is the dollar amount of cost of goods sold for the year according to the first-in, first-out method? $3,150 $5,300 $3,900 $3,950 Question 18 5 pts The following hammers were available for sale during the year for Charlie's Tools: Beginning inventory ....... 10 units at $160 First purchase 15 units at $200 Second purchase......... 30 units at $240 Third purchase.......... 25 units at $260 Waiculus has 30 hammers on hand at the end of the year. What is the dollar amount of cost of goods sold for the year according to the first in, first-out method? $10,600 $ 6,300 $7.900 $7,800 Question 19 5 pts If inventory at the end of the year is understated by $70,000, what will this error cause? An overstatement of inventory for the year by $70,000 An understatement of net income for the year by $70,000 An understatement of cost of goods sold for the year by $70,000 An overstatement of gross profit for the year by $70,000 Question 20 31 pts Inventory Costing Methods --Periodic Method The following data are for the Bloom Company, which sells just one product: Unit Cost Beginning inventory, January 1 ..... 200 Purchases: February 11 .............500 May 18 ......... October 23......... Sales March 1 ..... 400 July 1 ......... 380 Calculate the value of ending inventory and cost of goods sold using the periodic method and (a) first.in. first-out. (b) last-in, first-out, and (c) weighted average cost method. Round your final answers to the nearest dollar Upload Choose a File