Which of the following would be reported as inventory?

I. Land acquired for resale by a real estate firm

II. Agricultural produce held by a farm

III. Partially completed goods held by a manufacturing company

IV. Machinery acquired by manufacturing company for use in the production process

Goods held on consignment should be included in the inventory of 

Which of the following shall be included in the cost of inventories?

Inventories encompasses

I.  merchandise purchased by a retailer and held for resale 

Under these shipping terms, the buyer pays for the freight, which legally must be borne by the seller.

When using the periodic inventory method, which of the following generally would not be separately accounted for in the computation of cost of goods sold?

How should the following costs affect a retailer's inventory?

Freight-in                                                  Interest on inventory loan

Which of the following statements are true regarding perpetual inventory method?

I. Purchases are recorded as debits to inventory account.

II. The entry to record a sale includes a debit to cost of goods sold and a credit to inventory.

III. After a physical inventory count, inventory is credited for any missing inventory.

IV. Purchase returns are recorded by debiting accounts payable and crediting purchase returns and allowances.

Which costing method is appropriate for inventories that are segregated for a specific project and inventories that are not ordinarily interchangeable?

Which of the following inventory costing methods reports most closely the current cost of inventory on the statement of financial position?

During periods of rising prices, when the FIFO inventory cost flow method is used, a perpetual inventory system would

a period of rising prices, the inventory cost formula that tends to result in the highest reported profit is

When using the moving average method of inventory valuation, a new average unit cost must be computed after each

In periodic inventory system that uses the weighted average cost flow method, the bcginning inventory is

Under the net method of recording purchases, the purchase discounts not taken are

The retail inventory method would include which of the following in the calculation of the goods available for sale at both cost and retail?

Which of the following relating to inventories shall be disclosed in the entity's financial statements?

I. Cost formula used

II. Volume of inventories purchased during the period

III. Amount of inventories recognized as expense during the period

IV. Amount of reversal of write-down of inventories

V. Amount of inventories pledged as loan security

The average retail method is based on the assumption that the

Which statement is accurate about calculating the cost ratio to be used under the average retail inventory method?

A company using a periodic inventory system neglected to record a purchase of merchandise on account at year-end. The amount of this merchandise was omitted from the year-end physical count.

How will these errors affect inventory at year-end and cost of goods sold for the year?

INVENTORY--------------------------------PROFIT

During 2022, the Mitt Co. signed a non-cancelable contract to purchase 2,000 units of a raw material at P32 per pound. On December 31, 2022, the market price of the raw material is P26 per unit, and the selling price of the finished product is expected to decline accordingly.

The financial statements prepared for 2022 should report

Galleria Sportswear, Inc. regularly buys sweaters from Bon Company and is allowed a trade discount of 20% and 10% from the list price. Galleria made a purchase on March 20, 2022, and received an invoice with a list price of P90,000, a freight charge of P5,000, and payment terms of net 30 days.

What is the total cost of inventory purchase?

Celine Company purchased an item of merchandise quoted and listed at P150,000 under the following terms: Trade discounts of 15%, 10%, 5%, 2/10, n/30.

What was the invoice price of the merchandise?

Use the same information given in MC23. How much was the cash payment if settlement was made within the discount period?

MC25 Rock Distributors, a computer store in Virra Mall, specializes in the sale of IBM compatibles and software packages and had the following transactions with one of its suppliers:

Purchases of IBM compatibles - P3,280,000

Purchases of commercial software package - 900,000

Returns and allowances - 80,000

Purchase discounts taken - 27,000

Purchases were made throughout the year on terms 3/11, n/30. All returns and allowances took place within 5 days of purchase and prior to any payment of account.

How much were the discounts lost

Robinson Company's inventory at December 31, 2022, was P1,500,000 based on a physical count of goods priced at cost, and before any necessary year-end adjustment relating to the following:

·         Included in the physical count were goods billed to a customer F.O.B. shipping point on December 31, 2022. These goods had a cost of P30,000 and were picked up by the carrier on January 10, 2023.

·        Goods shipped F.O.B. shipping point on December 28, 2022, from a vendor to Robinson were received on January 4, 2023. The invoice cost was P50,000.

What amount should Robinson Company report as inventory on its December 31, 2022 statement of financialposition?

The inventory on hand on December 31, 2022 for SM Corporation is valued at a cost of P3,000,000. The following items were not included in the inventory:

a. Goods purchased in transit shipped FOB destination, with price of P300,000, which includes freight charge of P30,000.

b. Goods sold in transit FOB destination with invoice price of P490,000, which includes freight charge of P40,000 to deliver the goods.

c. Goods held on consignment by SM at a sales price of P100,000, excluding a 20% commission on the sales price. Freight paid by SM, P10,000.

d. Goods purchased in transit FOB shipping point with invoice of P600,000. Freight cost amounts to P60,000

e. Goods out on consignmen with sales price of 300,000