ACCOUNTING- LIFO tends to decrease taxes when_______.
Hi Man! Can you help me tonight? I have a lot of problems to solve. Thanks!LIFO tends to decrease taxes when_______. (Points : 1) costs are declining costs are constant costs are increasing LIFO will always yield the lowest possible taxesQuestion 2.2.Which of the following inventory costing methods requires a company to keep track of the actual movement of individual inventory items? (Points : 1) LIFO average cost FIFO specific unit costQuestion 3.3.Under the ________ inventory costing method, ending inventory and cost of goods sold are based on the same cost per unit that is adjusted after each new purchase. (Points : 1) FIFO LIFO average-cost specific identificationQuestion 4.4.Using the lower-of-cost-or-market rule of valuing inventory allows the accountant to attain_______. (Points : 1) consistency matching conservatism full disclosureQuestion 5.5.Danbury Inc. uses the periodic inventory accounting method. Information related to Danburyâs inventory is as follows for January 20X1:Jan 1st – Beginning Balance10 units at $200Jan 7th – Purchase8 units at $215Jan 22nd â Purchase12 units at $228Jan 31st â Ending Inventory7 unitsDanburyâs ending inventory balance using the LIFO inventory costing method is ________. (Points : 1) $5056.00 $1400.00 $4949.60 $1506.40Question 6.6.Table 5January 1 inventory balance90 units at $10 per unitMarch 2 purchase50 units at $11 per unitJuly 8 purchase80 units at $10 per unitNovember 15 purchase30 units at $12 per unitDecember 31 inventory balance75 unitsReferring to Table 5, assuming all goods are sold throughout the year for $19 per unit, gross profit calculated under the periodic LIFO method would be_______. (Points : 1) $1,465 $1,510 $1,260 $1,570Question 7.7.An error occurred in ABC Companyâs accounting system that caused inventory to be reported at $65,000 instead of its correct value of $61,000. Overstating inventory also caused ________. (Points : 1) gross profit to be understated cost of goods sold to be overstated net income to be overstated total assets to be understatedQuestion 8.8.Two separate errors affected Computer Sales in 20X7. The beginning inventory was overstated by $12,000 and the ending inventory was overstated by $18,000. Net income in 20X7 will be_______. (Points : 1) overstated by $30,000 overstated by $12,000 understated by $6,000 overstated by $6,000Question 9.9.Table 4Austin Company uses a periodic inventory system. Assume the following data for 20X5:Beginning inventory10 units at $7 eachMarch 18 purchase15 units at $9 eachJune 10 purchase20 units at $10 eachOctober 30 purchase12 units at $11 eachOn December 31, a physical count reveals 15 units in ending inventory.Referring to Table 4, under the average cost method, cost of goods sold on the income statement would be_______. (Points : 1) $420 $294 $389 $396Question 10.10.Samson Company had the following balances and transactions during 20X3. Beginning inventory10 units at $70March 10Sold 8 unitsJune 10Purchased 20 units at $80October 30Sold 15 unitsWhat would the company’s inventory amount be on the December 31, 20X3 balance sheet if the perpetual First-In, First-Out costing method is used? (Answers are rounded to the nearest dollar.) (Points : 1) $490 $540 $560 $554Question 11.11.Lisaâs clothing store burned down on May20th, 20X1. All inventory was destroyed. She did not keep a perpetual inventory system and did not know the value of her inventory to report to the insurance company. Beginning inventory was $13,000. She had purchases of $30,000 and sales of $29,500 from May 1st through May20th. Her gross profit margin is 35% of total sales. Lisa could estimate that her ending inventory on May20thwas ________. (Points : 1) $32,500 $32,675 $13,500 $23,825Question 12.12.Garry Corp uses a perpetual inventory accounting system. Garry Corp has a beginning inventory of 12 units at $15 each on January 1, 20X1. The following inventory transactions occurred during the month of January: January 2nd – purchased 20 units at $16.50 eachJanuary 10th â sold 7 unitsJanuary 17th â purchased 15 units at $17.25 eachJanuary 22nd â sold 25 units January 30th â purchased 5 units at $17.50 eachGarry Corp will report ________ for cost of goods sold in January using the FIFO inventory costing method. (Points : 1) $539.25 $317.00 $510.00 $346.25Question 13.13.Table 1 Assume the following data for Burnette Company for 20X5:Beginning inventory10 units at $7 eachMarch 18 purchase15 units at $9 eachApril 5 sale12 unitsJune 10 purchase20 units at $10 eachSeptember 15 sale30 unitsOctober 30 purchase12 units at $11 eachRefer to Table 1. Under the perpetual LIFO method, ending inventory would be valued at_______. (Points : 1) $165 $105 $153 $135Question 14.14.Marshall Corp uses a perpetual inventory accounting system. Marshall Corp has a beginning inventory of 10 units at $20 each on May 1, 20X1. The following inventory transactions occurred during the month of May: May 2nd- purchased 20 units at $22 eachMay 9thâ sold 18 unitsMay 15th â purchased 15 units at $24 eachMarshall Corp will report ________ (rounded) for ending inventory on May 31st using the average-cost inventory costing method. (Points : 1) $400.00 $600.00 $384.00 $616.00Question 15.15.Which of the following statements is correct? (Points : 1) US GAAP allows companies to change their inventory method each year as it makes sense to do so. There are only two different inventory costing methods used when companies follow international reporting standards. The concept of net realizable value is only used under accounting standards for private enterprises and not under international financial reporting standards. Inventory cost determination is the same under accounting standards for private enterprises as for international financial reporting standards.
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