Professional Documents
Culture Documents
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
2. If transportation costs are the responsibility of the buyer, they should be added to the cost of
inventory purchases for the period.
TRUE
3. The weighted average method of inventory costing results in a valuation between that determined
by the FIFO and LIFO costing methods.
TRUE
4. When the weighted average inventory method is used, ending inventory and cost of goods sold are
valued at a different cost per unit.
FALSE
7-1
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
5. LIFO will always result in highest income when costs are rising in comparison to specific
identification, FIFO and weighted average.
FALSE
6. LIFO can be used for income tax purposes and FIFO can be used for financial reporting purposes
for a company in a given year.
FALSE
7. A large retail department store probably would use the specific identification inventory costing
method for most of the items in its inventory.
FALSE
8. The lower-of-cost-or-market (LCM) rule is used because of the conservatism constraint, which
allows a departure from the historical cost principle.
TRUE
7-2
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
9. If Dell Computer has 10,000 Pentium disks in stock at a cost of $300 per chip when they can be
purchased at a replacement cost of $250 each. Dell will recognize this decline in cost when the chips
are sold as part of their computers.
FALSE
10. Inventory turnover is computed as cost of goods sold divided by ending inventory.
FALSE
11. Reducing inventory can free up cash and allow for reduced borrowing.
TRUE
12. If a company sells their inventory every 87 days then their inventory turnover ratio must be 4.2
times.
TRUE
7-3
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
13. If a company has a decrease in inventory equal to $3 million and a decrease in accounts payable
of $2 million, then cash flow from operating activities will increase by $1 million.
TRUE
14. The LIFO Reserve is a contra-asset account for the excess of FIFO inventory costs over the LIFO
inventory costs.
TRUE
15. In a period of rising costs, the LIFO Reserve account would be deducted from the ending
inventory under LIFO costing to convert it to ending inventory under FIFO costing.
FALSE
16. The beginning inventory of one accounting period becomes the beginning inventory amount of
the next accounting period.
FALSE
7-4
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
17. An understatement error in the ending inventory causes an overstatement of both net income and
current assets in that year.
FALSE
18. When a company using LIFO costing reduces its inventory levels at the end of the year, it can
lead to a LIFO liquidation.
TRUE
19. When a perpetual inventory system is used, the purchases returns and allowances account will not
be part of the general ledger accounts.
TRUE
20. Under the periodic inventory system, the balance in the inventory account changes each time a
purchase or sale of inventory is recorded.
FALSE
7-5
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
23. Rockwell Company reported the following amounts on its 2009 income statement: Purchases,
$100,000; Beginning inventory, $20,000; and Cost of goods sold, $110,000. Therefore, the 2009
ending inventory was
A. $10,000.
B. $25,000.
C. $15,000.
D. $27,000.
7-6
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
24. The 2009 records of Coleman Company showed beginning inventory, $100,000; cost of goods
sold, $450,000; and ending inventory, $80,000. The purchases for 2009 equal
A. $450,000.
B. $410,000.
C. $430,000.
D. $420,000.
25. When goods are sold on credit, revenue usually should be recognized at the date of
A. receipt of the sales order.
B. passage of title from the seller to the buyer.
C. receipt of the goods by the buyer.
D. manufacture of the goods.
26. Which of the following types of inventory usually is not held by a manufacturing business?
A. Finished goods inventory
B. Raw material inventory
C. Merchandise inventory
D. Work in process inventory
7-7
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
28. Thorton Co. reported the following data at year-end. Sales, $500,000; beginning inventory,
$40,000; ending inventory, $45,000; cost of goods sold, $350,000; and gross margin, $150,000. What
was the amount of merchandise purchased during the year?
A. $370,000
B. $355,000
C. $348,000
D. $341,000
29. The following information was taken from the 2010 income statement of Cobra Company: Pretax
income, $12,000; Total operating expenses (not including income taxes), $20,000; Sales revenue,
$120,000. Compute cost of goods sold.
A. $ 88,000
B. $100,000
C. $108,000
D. $112,000
7-8
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
30. The following information was taken from the 2010 income statement of Milburn Company:
Pretax income, $12,000; Total operating expenses (not including income taxes), $20,000; Sales
revenue, $120,000; Beginning inventory, $8,000; and Purchases, $90,000. Compute the amount of
the ending inventory.
A. $88,000
B. $10,000
C. $ 8,000
D. $18,000
32. Sheffield Company had the following information taken from its 2009 adjusted trial balance:
Sales, $400,000; Sales Discounts, $12,000; Beginning Inventory, $20,000; and Purchases, $200,000.
Ending inventory was determined to be $25,000. Compute the gross margin (gross profit) that would
appear in the income statement.
A. $162,000.
B. $180,000.
C. $193,000.
D. $205,000.
7-9
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
33. On March 10, Anthony Company received merchandise for resale from its normal supplier. The
price was $3,600 with terms of 2/10, n/30 for 100 units of Part #345. The invoice was paid on March
17. Freight costs were $120 and the company paid $108 of interest on a loan to buy the inventory.
What is the unit cost that should be recorded for each of the 100 units of Part # 345?
A. $36.48
B. $37.20
C. $36.00
D. $37.56
35. Which of the following costs while includable in inventory, is usually expensed as incurred
instead of being assigned to the inventory units?
A. Freight costs
B. Inspection and preparation costs
C. Purchases discounts
D. Purchase returns
7-10
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
36. Which of the following costs would not be part of product inventory costs for a manufacturer
such as Harley Davidson?
A. Costs to advertise the newest model.
B. Kickstands purchased for use in manufacturing the motorcycles
C. The factory manager's salary and benefits
D. The wages and benefits of an employee in the welding department
37. Which of the following businesses would not have cost of goods sold?
A. A jewelry store
B. A grocery store
C. A law firm
D. A manufacturer of batteries
38. Which of the following inventory costing methods is subject to manipulation with regard to the
resulting inventory cost?
A. LIFO.
B. FIFO.
C. Weighted-average cost.
D. All of the inventory methods are subject to manipulation.
7-11
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
39. Lauer Corporation uses the periodic inventory system and the following information about their
laptop computer is available:
40. Lauer Corporation uses the periodic inventory system and the following information about their
laptop computer is available:
7-12
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
41. Under the FIFO cost flow assumption during a period of inflation, which of the following is
false?
A. Income tax expense will be higher than under LIFO.
B. Gross margin will be higher than under LIFO.
C. Ending inventory will be lower than under LIFO.
D. Cost of goods sold will be lower than under LIFO.
42. Under the LIFO cost flow assumption during a period of inflation, which of the following is
false?
A. Cost of goods sold will be lower than under FIFO.
B. Gross margin will be lower than under FIFO.
C. Income tax expense will be lower than under FIFO.
D. Ending inventory will be lower than under FIFO.
7-13
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
44. When prices are rising, the method of inventory valuation that results in the highest relative net
cash inflow is:
A. FIFO.
B. LIFO.
C. weighted average.
D. inventory methods cannot affect cash flows.
7-14
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
47. The LIFO costing method is more costly and time consuming than a FIFO system. Which of the
following would be a valid justification for choosing LIFO?
A. It usually provides for more control over inventory
B. It usually provides managers with more useful information about the level of inventory by
monitoring the cost level in the inventory account
C. The tax savings from using LIFO during an inflationary period exceeds the cost of using a LIFO
costing system
D. It usually produces a higher net income when unit costs of inventory are rising
48. Moore Company purchased an item for inventory that cost $20 per unit and was marked to sell at
$30. It was determined that the replacement cost is $18 per unit. No purchases in the near future are
anticipated. Using the lower-of-cost-or- market rule, the per unit valuation for inventory should be
A. $18.00.
B. $20.00.
C. $25.00.
D. $30.00.
49. On December 31, 2009, the end of the accounting period, Cruise Company has on hand 10,000
units of a resale item which cost $40 per unit when purchased on June 15, 2009. The selling price is
$70 per unit. On December 30, 2009, the cost had dropped to $38 per unit. In view of the large
quantity of units on hand, no purchases are anticipated in the next six to nine months. At what
inventory amount should the 10,000 units be reported?
A. $100,000.
B. $120,000.
C. $350,000.
D. $380,000.
7-15
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
50. Under the lower-of-cost-or-market basis for valuing inventory if replacement cost of an item in
inventory has declined during a given accounting period,
A. pretax income and the amount of ending inventory will be reduced for the period in which the
merchandise is sold.
B. pretax income and the amount of ending inventory will be reduced for the period during which the
decline in market value occurred.
C. pretax income will be reduced for the period during which the decline in market value occurred
and the amount of ending inventory will decline for the period in which the merchandise is sold.
D. pretax income will be reduced for the period during which the merchandise is sold and the amount
of ending inventory will decline for the period in which the decline in market value occurred
51. Which of the following is a true statement about lower of cost or market (LCM)?
A. It is optional under generally accepted accounting principles, whether you apply LCM in the year
in which net realizable value declines below cost or the company waits until the inventory is sold.
B. LCM can be applied to all cost methods under generally accepted accounting principles except for
LIFO.
C. For tax purposes, the LIFO cost flow method cannot have LCM applied.
D. Under LCM, market equals the current selling price to the retail customer.
52. Tinker's Toys had cost of goods sold in 2009 of $7,506 million and $7,646 million in 2008. Their
merchandise inventory at the end of 2009 was $1,884 million and $2,094 million at the end of 2008.
What was their inventory turnover in 2009?
A. 3.77
B. 3.89
C. 3.97
D. 3.58
7-16
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
53. Tinker's Toys had cost of goods sold in 2009 of $7,506 million and $7,646 million in 2008. Their
merchandise inventory in 2009 was $1,884 million and $2,094 million in 2008. How long were their
average days to sell inventory in 2009?
A. 104.52 days
B. 100.31 days
C. 96.82 days
D. 101.96 days
54. A company reports its 2010 cost of goods sold at $15.0 million. Its ending inventory for 2010 is
$1.6 million and for 2009, ending inventory was $1.2 million. How much inventory did the company
purchase during 2009?
A. $14.6 million
B. $15.0 million
C. $15.4 million
D. $15.8 million
55. A company recorded net purchases on credit of $15.7 million for 2010. In 2009, ending accounts
payable was $1.4 million and in 2010, it was $1.9 million. How much cash was paid to suppliers in
2010?
A. $14.8 million
B. $15.0 million
C. $15.2 million
D. $15.7 million
7-17
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
56. A company reports its cost of goods sold as $15.0 billion in 2009. It has $2.9 billion in inventory
and reports accounts payable at $1.2 billion at the end of 2009. At the end of 2008 ending inventory
was reported at $3.1 billion and accounts payable was $1.4 billion. How much cash was paid to
suppliers for 2009?
A. $14.8 billion
B. $15.0 billion
C. $15.2 billion
D. $15.7 billion
57. In 2010, QV-TV, Inc. provided the following items in their footnotes. Their cost of goods sold
was $22 billion under FIFO costing and their inventory value under FIFO costing was $2.1 billion.
Their LIFO Reserve figure for year end 2009 was a $0.6 billion credit balance and at year end 2010 it
had increased to a credit balance of $0.8 billion. How much is LIFO inventory value at year end
2010?
A. $1.9 billion
B. $2.9 billion
C. $2.3 billion
D. $1.3 billion
58. In 2010, Terry Inc. provided the following items in their footnotes. Their cost of goods sold was
$22 billion under FIFO costing and their inventory value under FIFO costing was $2.1 billion. Their
LIFO Reserve account balance for year end 2009 had a $0.6 billion credit balance and then at year
end 2010, it had a credit balance of $0.8 billion. How much would they report as LIFO cost of goods
sold?
A. $22.2 billion
B. $19.8 billion
C. $22.8 billion
D. $19.2 billion
7-18
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
60. A $25,000 overstatement of the 2010 ending inventory was discovered after the financial
statements for 2010 were prepared. The effect of the inventory error on the 2010 financial statements
was
A. current assets were overstated and net income was understated.
B. current assets were understated and net income was understated.
C. current assets were overstated and net income was overstated.
D. current assets were understated and net income was overstated.
61. Wilmington Company reported pretax income amounts of: 2010, $25,000; and 2011, $30,000.
Later it was discovered that the ending inventory for 2010 was understated by $2,000 (and not
corrected in 2011). The correct pretax income for each year was:
A.
B.
C.
D.
7-19
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
62. At the end of 2009, a $5,000 understatement was discovered in the amount of the 2009 ending
inventory as reflected in the perpetual inventory records. What were the 2009 effects of the $5,000
inventory error (before correction)?
A. Assets (inventory) were understated by $5,000 and pretax income was understated by $5,000.
B. Assets (inventory) were understated by $5,000 and pretax income was overstated by $5,000.
C. Cost of goods sold was understated by $5,000 and pretax income was understated by $5,000.
D. Cost of goods sold was overstated by $5,000 and pretax income was overstated by $5,000.
63. An understatement of the ending inventory in Year 1, if not corrected, will cause
A. Year 1 net income to be understated and Year 2 net income to be overstated.
B. Year 1 net income to be overstated and Year 2 net income to be overstated.
C. Year 1 net income to be overstated and Year 2 net income will be correct.
D. Year 1 net income to be overstated and Year 2 net income to be understated.
64. If beginning inventory is understated by $1,300 and ending inventory is understated by $700,
pretax income for the period will be:
A. understated by $600.
B. understated by $2,000.
C. overstated by $600.
D. overstated by $2,000.
7-20
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
65. On December 15, 2009, Transport Company accepted delivery of merchandise which it
purchased on credit. As of December 31, 2009, the company had neither recorded the transaction nor
included the merchandise in its ending inventory amount because the seller's invoice had not been
received. The effect of this omission on its balance sheet at December 31, 2009, (end of the
accounting period) was that
A. assets and stockholder's equity were overstated but liabilities were not affected.
B. stockholder's equity was the only item affected by the omission.
C. assets and liabilities were understated but stockholders' equity was not affected.
D. assets and stockholders' equity were understated but liabilities were not affected.
66. A company using the periodic inventory system correctly recorded a purchase of merchandise,
but the merchandise was not included in the physical inventory count at the end of the accounting
period. The error caused an:
A. understatement of both net income and assets.
B. overstatement of inventory, purchases, and accounts payable.
C. understatement of inventory, purchases, and accounts payable.
D. overstatement of net income and assets.
67. At the end of 2010, XYZ Company failed to include some goods in its ending inventory and
failed to record the purchase of these goods. For 2010, these two errors caused
A. goods available for sale, cost of goods sold, and income to be overstated.
B. ending inventory, cost of goods sold, and retained earnings to be understated.
C. ending inventory, goods available for sale, and retained earnings to be understated.
D. no effect on income, working capital, or retained earnings.
7-21
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
68. Hollander Company hired some students to help count inventory during their semester break.
Unfortunately, the students added incorrectly and ending inventory was overstated by $5,000. What
would be the effect of this error in ending inventory?
A. Income would be overstated.
B. Income would be understated.
C. Ending retained earnings would be understated.
D. Cost of goods sold would be overstated.
69. During the audit of Montane Company's 2010 financial statements, the auditors discovered that
the 2010 ending inventory had been overstated by $8,000. Before the effect of this error, 2010 pretax
income had been computed as $100,000. What should be reported as the correct 2010 pretax income
before taxes?
A. $ 92,000.
B. $100,000.
C. None of the other answers is correct.
D. $108,000.
7-22
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
73. Which of the following may be used to calculate ending inventory (EI) under the periodic
inventory system?
A. BI + P + CGS = EI.
B. BI + P CGS = EI.
C. BI P + CGS = EI.
D. BI + P + GM = EI.
7-23
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
74. On March 15, 2009, Ryan Company purchased $10,000 of merchandise on credit subject to
terms, 2/10, n/30. Ryan Company records its purchases using the gross amount. The periodic
inventory system is used. If Ryan Company pays for these goods on March 30, the entry made to
record the payment should include
A. $200 credit to Purchase discounts.
B. debit of $9,800 to Accounts payable.
C. debit of $10,000 to Accounts payable.
D. $9,800 credit to cash.
75. Two systems are used in accounting for inventoryperpetual and periodic. Which of the
following statements is correct?
A. In a perpetual inventory system, the inventory account is not changed for each purchase during the
accounting period.
B. In a perpetual inventory system, cost of goods sold is recorded at the time of each sale during the
accounting period.
C. In a periodic inventory system, cost of goods sold is developed from a comparison of beginning
inventory and ending inventory only.
D. In a periodic inventory system, the inventory account is increased for each purchase during the
accounting period.
76. Which one of the following statements concerning the periodic and perpetual inventory systems is
true?
A. The periodic system uses a purchases account.
B. Inventory controls are only needed for the periodic inventory systems.
C. None of the accounting entries vary between the two systems.
D. Due to advances in computers, many businesses recently have begun to use the periodic inventory
system.
7-24
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
77. When a company uses the periodic inventory system in accounting for its merchandise inventory,
which of the following is true?
A. Purchases are recorded in the cost of goods sold account.
B. The inventory account is updated after each sale.
C. Cost of goods sold is computed at the end of the accounting periods rather than at each sale.
D. The inventory account is updated throughout the year as purchases are made.
7-25
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
79. Carrie Company sold merchandise with an invoice price of $1,000 to Underwood, Inc., with
terms of 2/10, n/30. Which of the following is the correct entry to record the payment by Underwood
Inc., within the 10 days if the company uses the periodic inventory system and the gross method to
record purchases?
A.
B.
C.
D.
80. On September 20, 2009, Precision Electric Company purchased $10,000 of stereo equipment for
resale on credit, subject to the terms 2/15, n/30. The periodic inventory system is used. If the
company paid for these goods on October 18, the entry made to record the payment should include
a/an
A. $200 debit to Purchases discounts.
B. $10,000 debit to Accounts payable.
C. $9,800 credit to Cash.
D. $10,000 debit to Purchases.
7-26
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
Essay Questions
81. McMillan Company uses the periodic inventory system. It has compiled the following
information in order to prepare the financial statements at December 31, 2009:
Calculate (A.) Goods available for sale (B.) Cost of goods sold and (C.) Gross margin on sales.
A. $100,000 + $750,000 = $850,000
B. $850,000
$120,000 = $730,000
C. $2,000,000
$50,000
$730,000 = $1,220,000
82. The records of Jimmy Company show 2009 purchases of $90,000. An actual count revealed a
2009 ending inventory of $8,000. The 2009 beginning inventory was $5,000. What was cost of goods
sold for 2009?
$5,000 + $90,000
$8,000 = $87,000
7-27
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
83. The following income statement is complete except for a few captions with bold lines on the left,
and amounts with dotted lines on the right. You are to fill in the most likely captions and amounts
(ignore income taxes):
7-28
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
84. The Latimer Company's income statement for 2009 reported the following: Cost of goods sold,
$250,000; beginning inventory, $20,000; and ending inventory, $25,000. Calculate purchases.
Purchases = $250,000 + $25,000
$20,000 = $255,000
85. Assume the following data are available: Sales revenue, $500,000; purchases, $310,000;
beginning inventory, $22,000; and a gross margin, $200,000. Calculate ending inventory.
Ending inventory = $22,000 + $310,000 ($500,000
$200,000) = $32,000
7-29
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
86. Compute the missing amounts for the income statement for each independent case.
7-30
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
87. Coulter Company uses the LIFO inventory method under the periodic inventory system. The
following data were available for the month of January, 2009:
7-31
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
88. William Company uses the periodic inventory system and the accounts reflected the following
data:
Requirement 1:
If the company wants to compare amounts using the (1) FIFO and (2) LIFO inventory methods,
compute the following amounts:
Requirement 2:
Conceptually, how does pretax income using FIFO (in times of rising prices) compare to LIFO pretax
income? Explain your answer.
Requirement 1:
Requirement 2:
FIFO pretax income is higher than LIFO pretax income in times of rising prices. FIFO matches older
lower prices to current period sales providing for higher gross margin and net income.
7-32
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
89. Jennings Company uses the periodic inventory system and applied FIFO inventory costing. At
the end of the annual accounting period, December 31, 2009, the accounting records for the best
selling item in inventory showed:
7-33
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
90. Freeman Company uses the periodic inventory system and applied LIFO inventory costing. At
the end of the annual accounting period, December 31, 2009, the accounting records in inventory
showed
7-34
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
91. A. Compute the missing amounts in the income statement under three different inventory costing
methods: (Round your answers to the nearest dollar).
B. Explain the results of the weighted-average inventory costing method compared to the FIFO and
LIFO costing methods.
7-35
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
a.
Computations:
A. 2,000 units
$12 = $24,000
B. (1,000 units
$10) + (1,000 units
$12) = $22,000
C. ($70,000
6,000) units
2,000 units = $23,333
OR $70,000
6,000 units = $11.67 (rounded)
$11.67
2,000 units = $23,340
b. Net income under the weighted average method will fall between the results of FIFO and LIFO
costing because it averages the unit cost over all the units available for sale. Under FIFO, we assign
the more recent, higher unit costs to ending inventory units an under LIFO, we assign the older, lower
unit costs to ending inventory units.
7-36
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
92. Hopkins Company reported the following information related to inventory and sales
7-37
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
93. The inventory records of Martin Corporation reflected the following information for the month
of August:
A. Determine the amount of the ending inventory and cost of goods sold under each of the following
methods assuming the periodic inventory system.
B. Why would cash flow considerations relate to the choice of an inventory method?
A. a. EI: $28,800 4,000 units = $7.20; 1,400
$7.20 = $10,080;
COGS: $28,800 10,080 = $18,720
b. EI: (1,200
$9) + (200
$7) = $12,200; COGS: $28,800
$12,200 = $16,600
c. EI: (400
$5) + (400
$5) + (600
$7) = $8,200
COGS: $28,800
$8,200 = $20,600
B. Cash flow considerations would relate to the choice of an inventory method because of income
taxes levied on a corporation. In times of rising prices, LIFO would produce a lower net income and
taxable income than the other methods. Therefore, less cash would be required to pay the taxes.
7-38
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
94. The records of Atlantis Company reflected the following for the month of February:
Determine the amount of ending inventory and cost of goods sold using the following methods:
$3) + (500
Computations:
A. EI = (600
$3) + (500
$4) + (100
COGS = $12,200 $4,300 = $7,900
B. EI = (900
$6) + (300
$5)
COGS = $12,200 $6,900 = $5,300
$4) + (600
$5) + (900
$6) = 12,200
$5)
7-39
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
95. Rio Company uses the FIFO inventory costing method and has a perpetual inventory system. All
purchases and sales were cash transactions. The records reflected the following for January, 2010:
7-40
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
96. Given a particular set of facts and assumptions, the following pairs of amounts were computed
using FIFO and LIFO. For each pair of amounts, indicate which amount resulted from applying
FIFO, and which amount resulted from applying LIFO.
A. Prices are rising, ending inventory is:
1. $20,650
2. $19,400
B. Prices are rising, cost of goods sold is:
1. $10,650
2. $9,400
C. Prices are falling, ending inventory is:
1. $5,500
2. $5,000
D. Prices are falling, cost of goods sold is:
1. $6,200
2. $7,000
A. 1. FIFO 2. LIFO
B. 1. LIFO 2. FIFO
C. 1. LIFO 2. FIFO
D. 1. LIFO 2. FIFO
7-41
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
97. The single-step income statement for Clinton Company for 2009 reported the following under
two different assumptions
7-42
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
98. Boulder, Inc. is computing its inventory at December 31, 2009. The following information relates
to the five major inventory items regularly stocked for resale
A. Using the lower-of-cost-or-market rule, compute the total valuation for each inventory item at
December 31, 2009, and the total inventory valuation.
7-43
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
99. Cutting Edge Technologies reported the following information in their 2010 annual report:
7-44
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
100. Sports Style Inc. manufactures sporting equipment and clothing. Its recent annual report
included the following on its balance sheet:
In addition to the above balance sheet information, All Sports Style Inc., reported cost of goods sold
on their income statement of $53,800,000.All purchases of inventory were made on credit.
Calculate:
1. Inventory purchased during 2010
2. Cash paid to suppliers during 2010
1. $53,850,520 ($53,800,000 + ($610,850 minus $560,330),
2. $53,845,820 ($53,850,520 minus ($90,500 minus $85,800)
7-45
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
101. Quest Inc. provided the following footnote in their annual report:
Inventories are stated at the lower of cost or market. The cost of inventories has been determined
using last in first out (LIFO) method. Cost of goods sold under LIFO costing were $22.2 billion for
2010 and ending inventory under LIFO was $1.3 billion. Inventory in 2009 under LIFO costing was
$1.2 billion. The LIFO Reserve account carried a credit balance of $0.8 billion in 2010 and $0.6
billion in 2009.
1. $1.8 billion, ($1.2 billion LIFO inventory plus $0.6 billion LIFO reserve).
2. $2.1 billion, ($1.3 billion plus $0.8 billion LIFO reserve).
3. $22.0 billion, ($22.2 billion LIFO COGS minus $0.2 billion increase in the LIFO reserve).
4. 17.76, ($22.2 billion divided by [$1.3 + $1.2 billion divided by 2])
5. 11.28, ($22.0 billion divided by [$2.1 + $1.8 billion divided by 2]).
7-46
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
102. Dows Company prepared income statements that reflected pretax income of $21,000 for 2009
and $30,000 for 2010. An audit has determined that there were two errors in the inventory amounts as
follows
Determine the correct pretax income amount for each year (show computations assuming the errors
were not corrected:
2009: $21,000
$1,000 = $20,000
2010: $30,000 + $1,000
$2,000 = $29,000
7-47
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
103. For each independent situation given below, determine the effect on pretax income for each.
Enter "+" to indicate pretax income is overstated, " " to indicate pretax income is understated, or
"NA" to indicate that pretax income is not affected.
7-48
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
104. Redford Company hired a new store manager in October 2011, who determined the ending
inventory on December 31, 2011, to be $50,000. In March, 2012 the company discovered that the
December 31, 2011 ending inventory should have been $58,000. The December 31, 2012, inventory
was correct. Ignore income taxes.
Complete the following table to show the effects of the inventory error on the four amounts listed.
Give the amount of the discrepancy and indicate whether it was overstated (O), understated (U), or
had no effect (N).
105. Sideline Company reported net income for 2009 of $70,000, and in 2010 $84,000 (both after
income taxes at a 30% rate). It was discovered in 2011 that the ending inventory for 2009 was
understated by $2,000 (before any income tax effect). Calculate the correct net income (after income
tax of 20%) for 2009 and 2010
2009$70,000
($2,000
.70) = $85,400
7-49
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
106. Tech Star Company reported net income in 2009 of $50,000 and in 2010 of $54,000. Later it
was discovered that the 2009 ending inventory was overstated by $1,000. Compute the correct
amount of net income (disregard income tax) for 2009 and 2010.
2009$51,000; 2010$53,000
107. A company provided the following footnote in its most recent annual report:
During the current and prior year, the company reduced certain inventory quantities that were
valued at lower LIFO costs prevailing in prior years. The effect of these physical reductions was to
increase after tax earnings this year by $90 million, $.30 per share, and $98 million, or $.327 per
share last year.
1. Explain why the reduction in inventory quantity increased after tax earnings for this company.
2. If the company had been using FIFO costing, would the reductions in inventory quantity during
the two years have increased after tax earnings? Explain.
1. The reduction of the physical level of inventory forced the release of older costs assigned to those
units from the balance sheet to the income statement once they were sold. Obviously the company
had been in a period of inflation and these older costs attached to the inventory units were far below
the current inventory replacement costs.
2. The reductions in inventory would not have increased after tax earnings because the costs that
would have been released from the balance sheet for the units sold would have been reflecting current
costs and not older, lower costs as they were under LIFO.
7-50
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
108. Assume Webster Company buys compact disks at a unit cost of $20 and sells them at a unit
price of $26. There was no beginning inventory.
Provide the journal entries required below by entering the account code of the appropriate account
and the amount for each debit and credit:
7-51
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
7-52
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
109. Give the journal entries for the transactions listed below under each of the two inventory
systems.
A. Purchased merchandise for cash, $1,000.
B. Sold merchandise for $600 cash that had cost $480 (cost is 80% of the sales price.
C. Accepted a sales return from a customer: sales price $30. A cash refund was given to the customer.
The goods were returned to regular inventory.
D. Returned goods to the vendor because they did not meet our specification; $50 cash refund was
received.
7-53
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
Matching Questions
110. For each of the following types of inventory, enter a letter to indicate the type of business in
which the inventory is more likely to appear.
1. Raw materials
2. Merchandise
3. Finished goods
4. Work in progress
Manufacturing
Retail
Manufacturing
Manufacturing
1
2
3
4
FIFO 2
None of the answers
is correct 3
LIFO
Weighted average
LIFO
None of the answers
is correct
None of the answers
is correct
Specific
identification
5
10
6
9
1
8
FIFO 7
FIFO 4
7-54
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
2
5
3
1
4
6
7-55
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e
To
Todownload
downloadmore
moreslides,
slides,ebook,
ebook,solutions
solutionsand
andtest
testbank,
bank,visit
visithttp://downloadslide.blogspot.com
http://downloadslide.blogspot.com
Chapter 007: Reporting and Interpreting Cost of Goods Sold and Inventory
5
9
4
1
6
7
8
3
Periodic inventory
system. 2
7-56
2009 McGraw-Hill Inc. Test Bank to accompany Libby Financial Accounting 6/e