The following lots of a particular commodity were available for sale during the year: $2.$ The firm uses the periodic system and there are $20$ units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the LIFO method? a$.$ $ $659($b$.)$ $ $620$ c$.$ $ $655$ d$.$ $ $690$ The firm uses the periodic system and there are $20$ units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the average cost method? a$.$ $ $659$ b$.$ $ $620$ c$.$ $ $655$ d$.$ $ $690/$r$/$n The following units of an inventory item were available for sale during the year: The firm uses the periodic inventory system. During the year, $60$ units of the item were sold. The value of ending inventory using average cost is: a$.$ $ $1,263$ b$.$ $ $1,375$ c$.$ $ $1,353$ d$.$ $ $1,150$ The value of ending inventory using LIFO is: a$.$ $ $1,250$ b$.$ $ $1,150$ c$.$ $ $1,350$ d$.$ $ $1,375/$r$/$n $13.$ The inventory data for an item for November are: Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO? a$.$ $ $590$ b$.$ $ $580$ c$.$ $ $600$ d$.$ $ $610/$r$/$n $15.$ Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the a$.$ inventory ledger b$.$ customer's ledger c$.$ creditor's ledger d$.$ purchase ledger $/$r$/$n $16.$ Which of the following measures the relationship between cost of merchandise sold and the amount of iaventory carried during the period? a$.$ retail method of inventory costing b$.$ inventory tumover c$.$ gross profit method of inventory costing d$.$ Fixed asset tumover $17.$ The inventory method that assigns the most rocent costs to cost of goods sold is a$.$ average b$.$ FIFO c$.$ specific identification d$.$ LIFO $18.$ Merchandise inventory at the end of the year was understated. Which of the following statements correctly states the effect of the error? a$.$ merchandise inventory reported on the balance shoet is overstated b$.$ net income is understated c$.$ net income is overstated d$.$ cost of merchandise sold is understated The following lots of a particular commodity were available for sale during the year: $[$ Beginning inventory $10$ units at $ $60$; First purchase $25$ units at $ $65$; Second purchase $30$ units at $ $68$; Third purchase $15$ units at $ $75]$ The firm uses the periodic system and there are $25$ units of the commodity on hand at the end of the year. $19.$ What is the amount of the inventory at the end of the year using the LIFO method? a$.$ $ $1,685$ b$.$ $ $1,575$ c$.$ $ $3,815$ d$.$ $ $1,80520.$ What is the amount of the inventory at the end of the year using the average cost method? a$.$ $ $1,575$ b$.$ $ $1,805$ c$.$ $ $3,705$ d$.$ $ $1,68521.$ Cost flow is in the reverse order in which costs were incurred when using a$.$ weighted average b$.$ average cost c$.$ first$-$in$,$ first$-$out d$.$ last$-$in$,$ first$-$out $/$r$/$n $22.$ During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory: a$.$ LIFO method b$.$ average method c$.$ FIFO method d$.$ can not tell without more information $23.$ Damaged merchandise that can be sold only at prices below cost should be valued at a$.$ average b$.$ LIFO c$.$ FIFO d$.$ net realizable value $24.$ Stevens Company started the year with an inventory cost of $ $145,000.$ During the month of January they purchased inventory that cost of $ $53,000.$ January salcs totaled $ $140,000.$ Estimated gross profit is $35\%.$ The estimated ending inventory as of January $31$ is a$.$ $ $107,000$ b$.$ $ $91,000$ c$.$ $ $58,000$ d$.$ $ $69,30025.$ Which of the following is used to analyze the efficiency and effectiveness of inventory management? a$.$ inventory tumover only b$.$ number of days' sales in inventory only c$.$ both inventory tumover and number of days' sales in imventory d$.$ neither inventory tumover or number of days' sales in inventory $26.$ The inventory data for an item for November are: $[$ Nov. $1$ Inventory $20$ units at $ $19$; $4$ Sold $10$ units; $10$ Purchased $30$ units at $ $20$; $17$ Sold $20$ units; $30$ Purchased $10$ units at $ $21]$ Using a perpetual system, what is the cost of the merchandise sold for November if the company uses LIFO? a$.$ $ $600$ b$.$ $ $580$ c$.$ $ $610$ d$.$ $ $59027.$ Merchandise inventory at the end of the year is overstated. Which of the following statements correctly states the effect of the error? a$.$ net income is understated b$.$ cost of merchandise sold is overstated c$.$ gross profit is understated d$.$ owner's equity is overstated $/$r$/$n $28.$ Too much inventory on hand a$.$ increases the cost to safeguard the assets b$.$ reduces solvency c$.$ increases the losses due to price declines d$.$ all of the above $29.$ If the cost of an item of inventory is $ $60$ and the current replacement cost is $ $75,$ the amount included in inventory according to the lower of cost or market is a$.$ $ $75$ b$.$ $ $15$ c$.$ $ $60$ d$.$ $ $13530.$ Kristin's Boutiques has identified the following items for possible inclusion in its December $31,2010$ inventory. Which of the following would not be included in the year end inventory? a$.$ Kristin has in its warehouse merchandise on consignment from Abby Co$.$ b$.$ Kristin has sent merchandise to various retailers on a consignment basis. c$.$ Kristin has merchandise on hand which has been returned by customers because of wrong size. d$.$ Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at Kristin's Boutique as of December $31,2010.$