Quiz 5 8 9 Fall 2010 1 
ACCT 350, Fall 2010
Quiz #5 Name: ______________________________________
1.
Bell Inc. took a physical inventory at the end of the year and determined that $650,000 of goods were on hand. In addition, Bell, Inc. determined that $50,000 of goods that were in transit that were shipped f.o.b. shipping were actually received two days after the inventory count and that the company had $75,000 of goods out on consignment. What amount should Bell report as inventory at the end of the year?
A)
$650,000.
B)
$700,000.
C)
$725,000.
D)
$775,000.
2.,
Risers Inc. reported total assets of $1,600,000 and net income of $85,000 for the current year. Risers determined that inventory was understated by $23,000 at the beginning of the year and $10,000 at the end of the year. What is the corrected amount for total assets and net income for the year?
A)
$1,610,000 and $95,000.
B)
$1,590,000 and $98,000.
C)
$1,610,000 and $72,000.
D)
$1,600,000 and $85,000.
Use the following to answer questions 3-4:
The following information was available from the inventory records of Rich Company for January:
Units
Unit Cost
Total Cost
Balance at January 1
3,000
$9.77
$29,310
Purchases: January 6
2,000
10.30
20,600
January 26
2,700
10.71
28,917
Sales: January 7
(2,500)
January 31
(4,000)
Balance at January 31 1,200
3.
Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
A)
$12,606.
B)
$12,284.
C)
$12,312.
D)
$12,432.
4.
Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?
A)
$12,606.
B)
$12,284.
C)
$12,312.
D)
$12,432.
Use the following to answer questions 5-6:
Niles Co. has the following data related to an item of inventory:
Inventory, March 1
100 units @ $4.20
Purchase, March 7
350 units @ $4.40
Purchase,
Quiz #5 Name: ______________________________________
1.
Bell Inc. took a physical inventory at the end of the year and determined that $650,000 of goods were on hand. In addition, Bell, Inc. determined that $50,000 of goods that were in transit that were shipped f.o.b. shipping were actually received two days after the inventory count and that the company had $75,000 of goods out on consignment. What amount should Bell report as inventory at the end of the year?
A)
$650,000.
B)
$700,000.
C)
$725,000.
D)
$775,000.
2.,
Risers Inc. reported total assets of $1,600,000 and net income of $85,000 for the current year. Risers determined that inventory was understated by $23,000 at the beginning of the year and $10,000 at the end of the year. What is the corrected amount for total assets and net income for the year?
A)
$1,610,000 and $95,000.
B)
$1,590,000 and $98,000.
C)
$1,610,000 and $72,000.
D)
$1,600,000 and $85,000.
Use the following to answer questions 3-4:
The following information was available from the inventory records of Rich Company for January:
Units
Unit Cost
Total Cost
Balance at January 1
3,000
$9.77
$29,310
Purchases: January 6
2,000
10.30
20,600
January 26
2,700
10.71
28,917
Sales: January 7
(2,500)
January 31
(4,000)
Balance at January 31 1,200
3.
Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
A)
$12,606.
B)
$12,284.
C)
$12,312.
D)
$12,432.
4.
Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?
A)
$12,606.
B)
$12,284.
C)
$12,312.
D)
$12,432.
Use the following to answer questions 5-6:
Niles Co. has the following data related to an item of inventory:
Inventory, March 1
100 units @ $4.20
Purchase, March 7
350 units @ $4.40
Purchase,