AutoSave OFF BE SU 1-08.01Student-2 Q Home Insert Draw Page Layout Formulas Data Review View Tell me Share 0 Comments X Calibri (Body) v 10 ~ AI = = a Wrap Text General [ HP/ EL Ayu O 5 Paste B I U av A. Insert Merge & Center v .00 .00 0 Delete Format $ %) Ideas Conditional Format Cell Formatting as Table Styles Sort & Filter Find & Select Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? Yes No L9 N R S V W Y Z AA AB AC AD AE AF AG AH AI AJ D E F G Track Rack is a software development company that specializes in developing information systems to account for inventory. The company maintains an active website, which is one of its primary marketing vehicles. The marketing department has sustad adding a frequendy a questions" section to the website. The section is intended to focus on eral inventory accounting concepts. By se doing visitors will come to the website to learn about inventory accounting Based on a visitor's part of dicks, pop-up ads will be thered furing specific software solutions that may be suitable to help the visitor with accounting issues he or she faces The marketing department personnel prepared the following list of "questions they fat would printerest in a particular software product. An inexperienced safer draad the proposed "answers. Your job is to review the FAQs below, and sustay corrections or darifications and to each proposed answer 2 QUESTION ANSWER Are finished goods synonymous with cost of goods sold? For a manufacturer, inventory may consist of crude foods, work in process, and finished Reeds carporis finished goods are completed units awaiting sale Cost of goods sold is the cost signed to goods that have been sold and delivered to customers 4 QUESTION ANSWER QUESTION 7 ANSWER How does the position of freight Darms impact total inventory? Geeds that are purchased F.O.B. destination are not included in inventory until received Geeds that are sold F.0.8. destination are transferred out of inventory on the day shipped Are consigned goods included in investory? Consigned goods remain in the inventory of the consignes, and should not be reported on the books of the consigor Is "inventory also called "cost of goods available for sale? Cest of goods available for sale is not the same as inventory. Cest of goods available for sales to a period of time and the amount is probably never actually on hand all once it is called sanding inventory plus purch QUESTION Dj ANSWER 10 QUESTION 11 ANSWER How does LIFO result in cash savings during a period of rising prices? LIFO peally results in a higher income level during a period of rising prices. More income out mon call 12 QUESTION 13 ANSWER Will a periodic and perpetual sy give me the same results? Never. The perpetual recalculation of inventory balance gives a different result than is achieved under a periodic application of AFO, UFO, and average costing bachniques 14 QUESTION It seems like the "gross profit method is much simpler than RIFO, LIFO, or are costing Can I use it as my primary investory won bachnique? 15 ANSWER 16 QUESTION 17 ANSWER Yes. The gross profit method is an acceptable amative to one of the other mentioned inventory costing methods. How can I use the tail inventory technique to estimate inventory that? You cannot Rail inbory bachniques are used to assist total inventory on hand. It is unresonable to expect an accounting method to determine the cost of inventory that no longer as 18 QUESTION 19 ANSWER What's the big deal if I undercount ending inventory? The goods are still there so there is ne rroban, ight? That's right Even if you miscount, there is no economic efect After all the goods are sell on hand. The numbers don't really matter in this case Problem Worksheet + 6 P 66% AutoSave OFF HES 5 = xl-08.01Student-2 Q Home Insert Draw Page Layout Formulas Data Review View Tell me Share 0 Comments Calibri (Body) v 10 ~ Ai = = a Wrap Text General HP/ EL : Ayu O 5 Paste B I U arA E Merge & Center v .00 .00 0 Insert Format $ %) Delete Ideas Conditional Format Cell Formatting as Table Styles Sort & Filter Find & Select Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? Yes No H13 fix A B CD F G H L L. M N O R S T U V W X Y Z AA AB AC AD 1 QUESTION 2 ANSWER Are "inished goods" synonymous with cost of goods sold?" 3 QUESTION How does the negotiation of freight terms impact total inventory? ANSWER 5 QUESTION 6 ANSWER Are consigned goods included in inventory? ? 7 QUESTION 8 ANSWER Is 'inventory" also called "cost of goods available for sale? 9 QUESTION 10 ANSWER How does LIFO result in cash savings during a period of rising prices? 11 QUESTION 12 ANSWER Will a periodic and perpetual system give me the same results? 13 QUESTION It seems like the "gross profit" method is much simpler than FIFO, UFO, or average costing Can I use it as my primary inventory valuation technique? 14 ANSWER 15 QUESTION 16 ANSWER How can I use the retail inventory technique to estimate inventory theft? 17 QUESTION What's the big deal ifi undercount ending inventory? The goods are still there so there is no real problem, right? 18 ANSWER Problem Worksheet + 6 75% AutoSave OFF BE SU 1-08.01Student-2 Q Home Insert Draw Page Layout Formulas Data Review View Tell me Share 0 Comments X Calibri (Body) v 10 ~ AI = = a Wrap Text General [ HP/ EL Ayu O 5 Paste B I U av A. Insert Merge & Center v .00 .00 0 Delete Format $ %) Ideas Conditional Format Cell Formatting as Table Styles Sort & Filter Find & Select Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? Yes No L9 N R S V W Y Z AA AB AC AD AE AF AG AH AI AJ D E F G Track Rack is a software development company that specializes in developing information systems to account for inventory. The company maintains an active website, which is one of its primary marketing vehicles. The marketing department has sustad adding a frequendy a questions" section to the website. The section is intended to focus on eral inventory accounting concepts. By se doing visitors will come to the website to learn about inventory accounting Based on a visitor's part of dicks, pop-up ads will be thered furing specific software solutions that may be suitable to help the visitor with accounting issues he or she faces The marketing department personnel prepared the following list of "questions they fat would printerest in a particular software product. An inexperienced safer draad the proposed "answers. Your job is to review the FAQs below, and sustay corrections or darifications and to each proposed answer 2 QUESTION ANSWER Are finished goods synonymous with cost of goods sold? For a manufacturer, inventory may consist of crude foods, work in process, and finished Reeds carporis finished goods are completed units awaiting sale Cost of goods sold is the cost signed to goods that have been sold and delivered to customers 4 QUESTION ANSWER QUESTION 7 ANSWER How does the position of freight Darms impact total inventory? Geeds that are purchased F.O.B. destination are not included in inventory until received Geeds that are sold F.0.8. destination are transferred out of inventory on the day shipped Are consigned goods included in investory? Consigned goods remain in the inventory of the consignes, and should not be reported on the books of the consigor Is "inventory also called "cost of goods available for sale? Cest of goods available for sale is not the same as inventory. Cest of goods available for sales to a period of time and the amount is probably never actually on hand all once it is called sanding inventory plus purch QUESTION Dj ANSWER 10 QUESTION 11 ANSWER How does LIFO result in cash savings during a period of rising prices? LIFO peally results in a higher income level during a period of rising prices. More income out mon call 12 QUESTION 13 ANSWER Will a periodic and perpetual sy give me the same results? Never. The perpetual recalculation of inventory balance gives a different result than is achieved under a periodic application of AFO, UFO, and average costing bachniques 14 QUESTION It seems like the "gross profit method is much simpler than RIFO, LIFO, or are costing Can I use it as my primary investory won bachnique? 15 ANSWER 16 QUESTION 17 ANSWER Yes. The gross profit method is an acceptable amative to one of the other mentioned inventory costing methods. How can I use the tail inventory technique to estimate inventory that? You cannot Rail inbory bachniques are used to assist total inventory on hand. It is unresonable to expect an accounting method to determine the cost of inventory that no longer as 18 QUESTION 19 ANSWER What's the big deal if I undercount ending inventory? The goods are still there so there is ne rroban, ight? That's right Even if you miscount, there is no economic efect After all the goods are sell on hand. The numbers don't really matter in this case Problem Worksheet + 6 P 66% AutoSave OFF HES 5 = xl-08.01Student-2 Q Home Insert Draw Page Layout Formulas Data Review View Tell me Share 0 Comments Calibri (Body) v 10 ~ Ai = = a Wrap Text General HP/ EL : Ayu O 5 Paste B I U arA E Merge & Center v .00 .00 0 Insert Format $ %) Delete Ideas Conditional Format Cell Formatting as Table Styles Sort & Filter Find & Select Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? Yes No H13 fix A B CD F G H L L. M N O R S T U V W X Y Z AA AB AC AD 1 QUESTION 2 ANSWER Are "inished goods" synonymous with cost of goods sold?" 3 QUESTION How does the negotiation of freight terms impact total inventory? ANSWER 5 QUESTION 6 ANSWER Are consigned goods included in inventory? ? 7 QUESTION 8 ANSWER Is 'inventory" also called "cost of goods available for sale? 9 QUESTION 10 ANSWER How does LIFO result in cash savings during a period of rising prices? 11 QUESTION 12 ANSWER Will a periodic and perpetual system give me the same results? 13 QUESTION It seems like the "gross profit" method is much simpler than FIFO, UFO, or average costing Can I use it as my primary inventory valuation technique? 14 ANSWER 15 QUESTION 16 ANSWER How can I use the retail inventory technique to estimate inventory theft? 17 QUESTION What's the big deal ifi undercount ending inventory? The goods are still there so there is no real problem, right? 18 ANSWER Problem Worksheet + 6 75%