7. South Company uses the perpetunl investory systems South\'s goods is trai at
ID: 2510283 • Letter: 7
Question
7. South Company uses the perpetunl investory systems South's goods is trai at December 31 isclude Sales made by South (1) FOB destination (3) POB destination 2) POB shipping point4) FOB shippingpo Which items should be included in South's inventory at December 31 a. (2) and (3) b. (1) and (4) c. (1) and (3) d. (2) and (4) In pariods of rising prices, the inventory method which results in the greatest net a. LIFO method. b. FIFO method. c. Weighted Average method. d. Lower of Cost or Market method. 8. income is the: 9. The following information was available for Rawley Company at December 31, 2016: inventory (Jan.01) $80,000; inventory (Dec. 31) $120,000; cost of goods sold $600 accounts receivable $73,000; and sales $900,000. Rawley's inventory turnover in 2016 was: a. 9.00 times. b. 7.50 times. c. 6.00 times. d. 5.00 times 10. When a perpetual inventory system is used, which of the following is a purpose of taking a phy a. To check the accuracy of the perpetual inventory records b. To determine cost of goods sold for the accounting period c. To compute inventory ratios d. All are a purpose of taking a physical inventory when a perpetual inventory system is us PAGE OF /Explanation / Answer
7 - Solution is b. 1 and 4
FOB Destination - Seller owns the goods while in transit
FOB Shipping point - Buyer owns the goods at sellers shipping dock, hence buyer owns the goods in transit
8. Solution is b. FIFO - the units which are purchased first are the ones which are sold and when prices are rising, the inventory purchased first will have a lower price
9. Solution is c. 6 Times
Avg Inventory = (80000+120000)/2 = 100,000
10. Solution is a - To check accuracy of the perpetual inventory records
Inventory Turnover = COGS / Average Inventory = 600,000 / 100,000 = 6 TIMES COGS = 600,000Avg Inventory = (80000+120000)/2 = 100,000
10. Solution is a - To check accuracy of the perpetual inventory records
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.