University of Toronto
Joseph L. Rotman School of Management
October 25, 2012
Duration: 1 hour 50 minutes
Aids allowed: Non-programmable calculator
Please print your name, student number day and time of your tutorial in the space provided.
There are 10 multiple choice and 8 problems. Please use the space provided below for your answer to the multiple choice questions.
You must use a pen. Do not use WHITEOUT.
Clearly show all computations in the test paper in order to obtain full marks for the problems.
Tests written in pencil will not be considered for remarking.
_______________________________ _______________________________ LAST NAME FIRST NAME…show more content…
4. Cost of goods sold is determined at the time of each sale in a __________inventory system.
5. consists of goods ready for sale to customers by retailers and wholesalers.
6. If goods are sold _______________ and are in transit at the end of the period, they should be included in the buyer’s inventory.
7. Ending inventory consists of the most recent inventory purchases in the ___ cost formula.
8. The same unit cost is used to determine the cost of inventory and cost of goods sold in the __________ cost formula.
9. If goods are sold _____________ and are in transit at the end of the period, they should be included in the seller’s inventory.
10. The measures the number of times the inventory sold during the period.
11. The ______________ cost formula is not allowed under IFRS or ASPE.
Part D (6 marks)
Knapford Corp. uses a periodic inventory system. Information related to Knapford's inventory for May is given below:
May 1 Beginning inventory 400 units @ $10.00 = $ 4,000 8 Purchase 800 units @ $10.40 = 8,320 16 Purchase 600 units @ $10.80 = 6,480 24 Purchase 200 units @ $11.60 = 2,320 2,000 $21,120
Required: (a) Calculate the ending inventory using FIFO assuming 400 units remain on hand at May 31. (show calculations)
(b) Calculate the ending inventory using average cost assuming 400 units remain on hand at May 31. (show calculations)
Part E (10