ACC 422 Final Exam

Topics: Depreciation, Inventory, Generally Accepted Accounting Principles Pages: 5 (1420 words) Published: September 4, 2014
ACC 422 Final Exam

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Question 2
Presented below is information related to Rembrandt Inc.'s inventory. (per unit)SkisBootsParkas
Historical Cost273.79152.7576.37
Selling Price312.70208.95106.27
Cost to distribute27.3811.533.60
Current replacement cost292.52151.3173.49
Normal profit margin46.1141.7930.62
Determine the following:

Question 3
Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 67 units that cost $40 each. During June, the company purchased 202 units at $40 each, returned 8 units for credit, and sold 168 units at $67 each. Journalize the June transactions.

Question 4
Amsterdam Company uses a periodic inventory system. For April, when the company sold 700 units, the following information is available. Compute the April 30 inventory and the April cost of goods sold using the average cost method.

Question 5
Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is available. Compute the April 30 inventory and the April cost of goods sold using the FIFO method.

Question 6
(FIFO, LIFO, Average Cost Inventory)
Esplanade Company was formed on December 1, 2011. The following information is available from Esplanade's inventory records for Product BAP.

PurchasesUnitsUnit Cost
January 1, 2012(beginning inventory)7628.00
January 5, 20121,5249.00
January 25, 20121,65110.00
February 16, 20121,06111.00
March 26, 201276212.00

A physical inventory on March 31, 2012, shows 2,032 units on hand. Prepare schedules to compute the ending inventory at March 31, 2012, under each of the following inventory methods. Assume Esplanade Company uses the periodic inventory method.

Question 7
Floyd Corporation has the following four items in its ending inventory. Determine the final lower of cost or market inventory value for each item.

Question 8
Kumar Inc. uses a perpetual inventory system. At January 1, 2013, inventory was $320,786 at both cost and market value. At December 31, 2013, the inventory was $428,714 at cost and $403,231 at market value. Prepare the necessary December 31 entry under:

Question 9
Boyne Inc. had beginning inventory of $15,000 at cost and $25,000 at retail. Net purchases were $150,000 at cost and $212,500 at retail. Net markups were $12,500; net markdowns were $8,750; and sales were $196,250. Compute ending inventory at cost using the conventional retail method.

Question 10
(Gross Profit Method)
Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.

Question 11
Previn Brothers Inc. purchased land at a price of $30,400. Closing costs were $1,820. An old building was removed at a cost of $14,850. What amount should be recorded as the cost of the land?

Question 12
Garcia Corporation purchased a truck by issuing an $108,000, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck.

Question 13
Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $352,800. The estimated fair values of the assets are land $67,200, building $246,400, and equipment $89,600. At what amounts should each of the three assets be recorded?

Question 14
Fielder Company obtained land by issuing 2,000 shares of its $12 par value common stock. The land was recently appraised at $103,700. The common stock is actively traded at $50 per share. Prepare the journal entry to record the acquisition of the land.

Question 15
Navajo Corporation traded a used truck (cost $23,600, accumulated depreciation...
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