Listed below are several terms and phrases associated with inventory measurement. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it. (Select appropralte item from the list.) Descriptions Items a. Legal title passes when goods are delivered to common carrier. Perpetual inventory system b. Goods are transferred to another company but title remains with transferor. Periodic inventory system c. Purchases are recorded for the full cost of inventory. F.o.b. shipping point d. If LIFO is used for taxes, it must be used for financial reporting. Gross method e. Assumes items sold are those acquired first. Net method f. Assumes items sold are those acquired last. Cost index g. Purchase discounts are recorded for the full cost of inventory less any possible discount. F.o.b. destination h. Used to convert ending inventory at year-end cost to base year cost. FIFO i. Continuously records changes in inventory. LIFO Consignment Average cost j. Assumes items sold come from a mixture of goods acquired during the period. k. Legal title passes when goods arrive at location. RS conformity rule I. Adjusts inventory at the end of the period.

Listed below are several terms and phrases associated with inventory measurement. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it. (Select appropralte item from the list.) Descriptions Items a. Legal title passes when goods are delivered to common carrier. Perpetual inventory system b. Goods are transferred to another company but title remains with transferor. Periodic inventory system c. Purchases are recorded for the full cost of inventory. F.o.b. shipping point d. If LIFO is used for taxes, it must be used for financial reporting. Gross method e. Assumes items sold are those acquired first. Net method f. Assumes items sold are those acquired last. Cost index g. Purchase discounts are recorded for the full cost of inventory less any possible discount. F.o.b. destination h. Used to convert ending inventory at year-end cost to base year cost. FIFO i. Continuously records changes in inventory. LIFO Consignment Average cost j. Assumes items sold come from a mixture of goods acquired during the period. k. Legal title passes when goods arrive at location. RS conformity rule I. Adjusts inventory at the end of the period.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If each purchase and sale of merchandise is recorded in the inventory and the cost of merchandise sold accounts, the method of accounting for merchandise inventory is the: A perpetual method. B) periodic method. C) gross profit method. D) administrative method.
Identify which of the following statement is correct for perpetual inventory system? Under the perpetual Inventory system, on the purchase of Inventory purchase account is debited. When valuing ending Inventory under a perpetual Inventory system, oldest units purchased during the period using FIFO are allocated to the cost of goods sold when units are sold. When valuing ending Inventory under a perpetual Inventory system, weighted average cost method requires that a new weighted average unit cost be calculated after every sale. 09/03/2024 15:01 When valuing ending Inventory under a perpetual inventory system, valuation using weighted average is the same as the valuation using weighted average under the periodic Inventory system.
Identify each item as describing the FIFO method, LIFO method, or average cost method of inventory valuation. A. Involves calculating the total number of units in the warehouse FIFO LIFO Average cost B. To determine cost of goods sold, begin with the earliest goods acquired FIFO LIFO Average cost C. To determine merchandise inventory balance, begin with the earliest goods acquired FIFO LIFO Average cost
Which of the following is a difference between the periodic inventory system and the perpetual inventory system? a. The Merchandise Inventory account is used under the perpetual inventory system but not under the periodic inventory system. Ob. The Purchases account is used under the periodic inventory system but not under the perpetual inventory system. c. The Merchandise Inventory account is used under the periodic inventory system but not under the perpetual inventory system. Od. The Purchases account is used under the perpetual inventory system but not under the periodic inventory system.
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Describe the recording process for purchases of merchandise inventory using a Perpetual inventory system.
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Waegelein Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should be included or excluded from the inventory taking 1. Goods shipped on consignment by Waegelein to another company. 2. Goods in transit from a supplier shipped FOB destination. 3. Goods shipped via common carrier to a customer with terms FOB shipping point. 4. Goods held on consignment from another company. seek