Complete the following statements with one of the terms listed below. A term may be used once, more than once, or not at all. • Finished goods inventory • Manufacturing organisations • Merchandising companies • Unfinished goods • Service organisations (a) All -------------- typically have a single category of inventory. (b) -------------- do not have tangible products purchased for resale. (c) -------------- resell ready-made products. (d) The inventory of a manufacturer includes raw material, --------- and ----------. (e) -------------- use their plant, machinery and labour to convert raw material into finished goods

Complete the following statements with one of the terms listed below. A term may be used once, more than once, or not at all. • Finished goods inventory • Manufacturing organisations • Merchandising companies • Unfinished goods • Service organisations (a) All -------------- typically have a single category of inventory. (b) -------------- do not have tangible products purchased for resale. (c) -------------- resell ready-made products. (d) The inventory of a manufacturer includes raw material, --------- and ----------. (e) -------------- use their plant, machinery and labour to convert raw material into finished goods

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.3P

See similar textbooks

Similar questions

Merchandise Accounting Merchandise Inventory Raw materials Work in process Finished goods Gross profit Net sales Sales revenue Cost of goods available for sale Cost of goods sold Perpetual system Periodic system Transportation-In Purchases FOB destination point FOB shipping point Gross profit ratio An adjunct account used to record freight costs paid by the buyer. A system in which the Inventory account is increased at the time of each purchase and decreased at the time of each sale. Terms that require the seller to pay for the cost of shipping the merchandise to the buyer. Terms that require the buyer to pay for the shipping costs. A system in which the Inventory account is updated only at the end of the period. Beginning inventory plus cost of goods purchased. An account used in a periodic inventory system to record acquisitions of merchandise. Sales revenue less sales returns and allowances and sales discounts. Cost of goods available for sale minus ending inventory. Gross profit divided by net sales. Net sales less cost of goods sold. The cost of unfinished products in a manufacturing company. The account wholesalers and retailers use to report inventory held for sale. The inventory of a manufacturer before the addition of any direct labor or manufacturing overhead. A manufacturers inventory that is complete and ready for sale. A representation of the inflow of assets from the sale of a product.
Lower of Cost or Market Merediths Appliance Store has the following data for the items in its inventory at the end of the accounting period: Required: 1. Compute the carrying value of Merediths ending inventory using the lower of cost or market rule applied on an item-by-item basis. 2. Prepare the journal entry required to value the inventory at lower of cost or market. 3. CONCEPTUAL CONNECTION What is the conceptual justification for valuing inventory at the lower of cost or market?
Inventory Costing: LIFO Refer to the information for Filimonov Inc. and assume that the company uses a perpetual inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method.
Please Complete the following statements with one of the terms listedbelow. A term may be used once, more than once, or not at all.• Finished goods inventory• Manufacturing organizations• Merchandising companies• Unfinished goods• Service organizations(a) All -------------- typically have a single category of inventory.(b) -------------- do not have tangible products purchased for resale.(c) -------------- resell ready-made products.(d) The inventory of a manufacturer includes raw material, ---------and ----------.(e) -------------- use their plant, machinery, and labor to convert rawmaterial into finished goods.
Complete the following statements with one of the terms listed below. A term may be used once, more than once, or not at all. Finished goods inventory • Unfinished goods Manufacturing organizations • Service organizations Merchandising companies (a) All -------------- typically have a single category of inventory. (b) -------------- do not have tangible products purchased for resale. (c) -------------- resell ready-made products. (d) The inventory of a manufacturer includes raw material, --------- and ----------. (e) -------------- use their plant, machinery and labor to convert raw material into finished goods. Distinguish among service, merchandising and manufacturing companies. What are the Inventoriable costs of a merchandising business? Explain the term “period costs”.
1-Which of the following will be classified under inventory? a. Raw Materials b. All the above c. Work-in-progress d. Finished goods 2-Multiple-step income statements: a. Show income from operations but not gross profit b. Show gross profit but not income from operations c. Show both gross profit and income from operations d. Show neither gross profit nor income from operations 3-Goods returned to suppliers will be recorded in which books of prime entry? a. General Journal b. Sales Journal c. Purchase Journal d. Sales ledger 4-The following is the financial information of XYZ company: Operating Expenses RO 45,000 Sales Revenue RO 150,000 Cost of Goods Sold RO 90,000 The Gross Profit Margin in terms of percentage will be a. 30 b. 10 c. 40 d. 70 5-Mr. Salim Mr. Salman are running a restaurant business in Nizwa. Which of the following would be classified as a Fixed asset for their restaurant business? a. Cash in hand in the…
1. is not considered as an Inventory A) Assets intended to be sold in thenormal course of business B) Equipment used in themanufacturing are sold C)Assets currently in production fornormal sales D)Materials used in the production ofgoods to be sold 2.The retail firm will prefer to use as an inventory account titled. A)Inventory B)Raw Materials Inventory C)Merchandise (Finished Goods)Inventory D)Goods in Process Inventory Explain with correct option
You may recall from Principles I that “Cost of goods sold” for a retailer is figured as shown below: Beginning inventory+ Purchases= Cost of goods available for sale– Ending inventory= Cost of goods sold (A) How does the “Cost of Goods Sold” section of the income statement differ between merchandising and manufacturing companies and how is it calculated for manufacturing companies? (B) Inventory on the balance sheet is also different for a manufacturing company than for a retailer. What are the three types of inventory on a manufacturer’s balance sheet? After naming all three, select one and discuss it.
You may recall from Principles I that “Cost of goods sold” for a retailer is figured as shown below: Beginning inventory+ Purchases= Cost of goods available for sale– Ending inventory= Cost of goods sold (A) How does the “Cost of Goods Sold” section of the income statement differ between merchandising and manufacturing companies and how is it calculated for manufacturing companies? (B) Inventory on the balance sheet is also different for a manufacturing company than for a retailer. What are the three types of inventory on a manufacturer’s balance sheet? After naming all three, select one and discuss it. Please type out so I can read correctly*
Select all that apply Determine which of the following statements are correct regarding the difference between physical flow and the cost flow of inventory Check all that apply) A business may adopt any cost flow assumption when accounting for perishable sems Perishable-items Usually have an actual physical flow of FIFO Penshable items neve an actual physical flow of LIFO Cost flow in an assumption about which goods/items are sold Physical flow refers to the actual movement of goods
Journal entries for recording revenue and costs for service provider. For a traditional inventory-carrying companies, recording journal entries for revenue and costs is something like the following: Dr. Cash $100 Cr. Revenue $100 Dr. Cost of goods sold $50 Cr. Inventory $50 How does the journal entry work for service companies such as SaaS firms that do not carry inventory?
T, F. Common inventory classification for a manufacturing company is: raw materials, work-in-process, finished goods and inventory of defective goods. T, F. Under the GAAP rule, inventories can be reported at above cost in the balance sheet. T, F. If ending inventory is overstated due to quantity or cost errors, but purchases are corrected, the effect in income statement is overstatement because of the cost of goods sold that is understated.