Accounting

Topics: Inventory, Balance sheet, Revenue Pages: 3 (1205 words) Published: July 7, 2013

Merchandise inventory is generally valued at the price for which the goods can be sold. reported under the classification of Property, Plant, and Equipment on the balance sheet. reported as a current asset on the balance sheet. often reported as a miscellaneous expense on the income statement. Items waiting to be used in production are considered to be finished goods. merchandise inventory. raw materials. work in progress. In a manufacturing business, inventory that is ready for sale is called store supplies inventory. finished goods inventory. raw materials inventory. work in process inventory. Inventory items on an assembly line in various stages of production are classified as Finished goods. Work in process. Merchandise inventory. Raw materials. Rudolf Diesel Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $9.00 Purchases: June 18 4,500 8.00 November 8 3,000 7.00 A physical inventory on December 31 shows 3,000 units on hand. Under the FIFO method, the December 31 inventory is $21,750. $21,000. $27,000. $24,000. Rudolf Diesel Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $9.00 Purchases: June 18 4,500 8.00 November 8 3,000 7.00 A physical inventory on December 31 shows 3,000 units on hand. Under the FIFO method, the December 31 inventory is $21,750. $21,000. $27,000. $24,000. In a period of rising prices, FIFO will have lower cost of goods sold than LIFO. lower net income than LIFO. lower net purchases than LIFO. lower income tax expense than LIFO. The inventory turnover ratio is computed by dividing cost of goods sold by 365 days. average inventory. beginning inventory. ending inventory. Quigley Company's records indicate the following information for the year: Merchandise inventory, 1/1 $550,000 Purchases 2,250,000 Net Sales 3,000,000 On December 31, a physical inventory determined that ending inventory of $600,000 was in the warehouse. Quigley's gross profit...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • accounting help Essay
  • Accounting Project Essay
  • Essay about Accounting Quiz
  • Managerial Accounting Essay
  • Accounting Essay
  • Managerial Accounting Concepts and Principles Essay
  • Accounting Notes Essay
  • Essay about tests on accounting

Become a StudyMode Member

Sign Up - It's Free