Module 4_ Mastery Exercise_ 23SD-ACT300-1-2

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Moorpark College *

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ACCT300

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Accounting

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Feb 20, 2024

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7/12/23, 6:24 PM Module 4: Mastery Exercise: 23SD-ACT300-1 https://csuglobal.instructure.com/courses/78899/quizzes/708672 1/7 Module 4: Mastery Exercise Due No due date Points 10 Questions 10 Time Limit None Allowed Attempts Unlimited Instructions Attempt History Attempt Time Score KEPT Attempt 3 8 minutes 10 out of 10 LATEST Attempt 3 8 minutes 10 out of 10 Attempt 2 11 minutes 8 out of 10 Attempt 1 5 minutes 4 out of 10  Correct answers are hidden. Score for this attempt: 10 out of 10 Submitted Jul 12 at 7:24pm This attempt took 8 minutes. Take the Quiz Again 1 / 1 pts Question 1 Under the perpetual inventory system, in addition to making the entry to record a sale, a company would ________. record a decrease in inventory and an increase in cost of goods sold for the cost of the merchandise sold. record an increase in inventory corresponding to the amount of the sale.                  

7/12/23, 6:24 PM Module 4: Mastery Exercise: 23SD-ACT300-1 https://csuglobal.instructure.com/courses/78899/quizzes/708672 2/7 record an increase in inventory corresponding to the cost of the inventory. make no additional entry until the end of the period. Correct. Since companies must keep their inventory records up to date, they must remove the sold items from the records as well. 1 / 1 pts Question 2 (True) or (False)? Only companies using the periodic inventory system must count their inventory at end of accounting period. All others can rely on their computer records to determine the cost of goods sold. True False False Correct. Periodic inventory systems do not track their inventory in real time. Therefore, they use the inventory equation: Cost of Goods Sold (COGS) = Beginning Inventory + Purchases - Ending Inventory. In this equation, the unknown variable is “Ending Inventory.” It can be obtained only through physical counting of ending inventory. However, even with a perpetual inventory method, a physical inventory count must be performed to ensure that the computer records are up to date and no inventory has been lost, stolen, or misplaced. 1 / 1 pts Question 3 (True) or (False)? The cost of an inventory item includes its invoice cost minus any discount, plus any added or incidental costs necessary to put it in place

7/12/23, 6:24 PM Module 4: Mastery Exercise: 23SD-ACT300-1 https://csuglobal.instructure.com/courses/78899/quizzes/708672 3/7 and condition for sale, as well as any advertising costs throughout the period. True False False Correct. Although the first items are included, advertising costs to sell the inventory is not considered a cost of the inventory. 1 / 1 pts Question 4 The following transactions occurred between Jonson, Inc, and SeverCo, Enterprises in January 20X8: January 10- Jonson purchased merchandise from SeverCo for $80,000; terms 3/15/EOM, n/60, FOB destination. January 11 - SeverCo paid freight of $750. True False False Correct. Since the inventory was sold FOB destination, the title does not pass to the owner until it reaches the destination. In this case, the transfer took place on January 15th. As such, the Seller owned the inventory until that date (including January 14th.). 1 / 1 pts Question 5

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