Perpetual Inventory System: Questions
1 . Under a perpetual inventory system , when a shortage is discovered __________
d . Merchandise Inventory is credited
2 . The inventory data for an item for November are : Nov . 1 Inventory 20 units at 20
4 Sold 10 units
10 Purchased 30 units at 21
17 Sold 20 units
30 Purchased 10 units at 22
Using the perpetual system , costing by the last-in , first-out method what is the cost of the merchandise sold for November
d 610
3 . The inventory data for an item for November are : Nov . 1
Inventory 20 units at 20
4 Sold 10 units
10 Purchased 30 units at 21
17 Sold 20 units
30 Purchased 10 units at 22
Using the perpetual system , costing by the first-in , first-out method what is the cost of the merchandise sold for November
a 39
b 45
c 51
d 90
- the above problem may have errors in it since the amounts given will not correspond to any of the available choices . There may have been a mistake with the choices presented . The answer would be 620
4 . Merchandise inventory at the end of the year was inadvertently overstated . Which of the following statements correctly states the effect of the error on net income , assets , and owners equity
c . net income is understated , assets are understated , owners equity is understated
5 . Becky 's Boutiques has identified the following items for possible inclusion in its December 31 , 2008 inventory . Which of the following would not be included in the year end inventory
b . Becky 's has in its warehouse merchandise on consignment from ABC Co
6 . If a manufacturer ships merchandise to a retailer on consignment , the unsold merchandise should be included in the inventory of the _________
c . manufacturer
7 . From PE 7-5A what is the cost value for Commodity TRP4
b 1 ,728...
d . Merchandise Inventory is credited
2 . The inventory data for an item for November are : Nov . 1 Inventory 20 units at 20
4 Sold 10 units
10 Purchased 30 units at 21
17 Sold 20 units
30 Purchased 10 units at 22
Using the perpetual system , costing by the last-in , first-out method what is the cost of the merchandise sold for November
d 610
3 . The inventory data for an item for November are : Nov . 1
Inventory 20 units at 20
4 Sold 10 units
10 Purchased 30 units at 21
17 Sold 20 units
30 Purchased 10 units at 22
Using the perpetual system , costing by the first-in , first-out method what is the cost of the merchandise sold for November
a 39
b 45
c 51
d 90
- the above problem may have errors in it since the amounts given will not correspond to any of the available choices . There may have been a mistake with the choices presented . The answer would be 620
4 . Merchandise inventory at the end of the year was inadvertently overstated . Which of the following statements correctly states the effect of the error on net income , assets , and owners equity
c . net income is understated , assets are understated , owners equity is understated
5 . Becky 's Boutiques has identified the following items for possible inclusion in its December 31 , 2008 inventory . Which of the following would not be included in the year end inventory
b . Becky 's has in its warehouse merchandise on consignment from ABC Co
6 . If a manufacturer ships merchandise to a retailer on consignment , the unsold merchandise should be included in the inventory of the _________
c . manufacturer
7 . From PE 7-5A what is the cost value for Commodity TRP4
b 1 ,728...