Exam (elaborations)
MBA 5100 Ch 5,6,7 Exam Questions With 100% Correct Answers
- Course
- Institution
MBA 5100 Ch 5,6,7 Exam Questions With 100% Correct Answers
[Show more]
Content preview
MBA 5100 Ch 5,6,7 Exam Questions With100% Correct Answers
Whenigoodsiareisoldiunderitheiperpetualiinventoryisystem,itheicostiofig
oodisoldiisitransferredifromithei_____iaccountitoithei_____iaccounti-
iCorrectiAnswer-Inventoryicostiofigoodsisold
Theispecificiidentificationicostiflowimethodiisimostilikelyitoibeiusediwhe
ni-iCorrectiAnswer-
salesivolumeiisilowiandicostiperiunitiofiinventoryiisihigh
Ted'sisportsiCenteripurchaseditwoibasketballsiforiresale.iOneiwasipurch
asediiniJuneiatiaicostiofi$30ianditheiotheriwasipurchasediiniJulyiatiaicosti
ofi$34.iTheitwoiinventoryiitemsiareiidenticaliiniallirespectsiexceptitheipri
ceipaiditoiacquireithem.iAssumeiTed'siusesitheiFIFOicostiflowimethod.iIfi
Ted'sisellsioneiofitheiballsiiniAugust,itheiamountichargeditoicostiofigood
sisoldi-iCorrectiAnswer-Willibei$30
Wheniinventoryiisisold,iinventoryicostimethodsi(FIFO,iLIFO,iweightediav
erage)iareiuseditoidetermineihowimuchicostitoiassignitoi-
iCorrectiAnswer-costiofigoodsisold
Whichimethodidoicompaniesimostiofteniuseitoiphysicallyiflowiinventor
yiitemsithroughiaistore?i-iCorrectiAnswer-FIFO
,Inventoryiitemi101icosti$100.iInventoryiitemi102icosti$110.iIfitheibusine
ssiusesitheispecificiidentificationicostiflowimethodiandiItemi102iisisoldit
oiaicustomer,itheiamountiassigneditoicostiofigoodsisoldiisi______.i-
iCorrectiAnswer-$110
Fred'siFansipurchaseditwoiidenticalifansiforiresale.iFani1iwasipurchasedi
iniApriliandicosti$76.iFani2iwasipurchasediiniMayiandicosti$80.iOneiofith
eifansiwasisoldiiniJuneifori$100.iWhichiinventoryicostiflowimethodiwoul
diresultiiniai$20igrossimargin?i-iCorrectiAnswer-Last-in,ifirstiout
Fred'siFansipurchaseditwoiidenticalifansiforiresale.iFani1iwasipurchasedi
iniApriliandicosti$76.iFani2iwasipurchasediiniMayiandicosti$80.iOneiofith
eifansiwasisoldiiniJuneifori$100.iWhichiinventoryicostiflowimethodiwoul
diresultiiniai$22igrossimargin?i-iCorrectiAnswer-Weightediaverage
Inventoryiitemi101ipurchasediiniOctobericosti$100.iInventoryiitemi102i
purchasediiniNovembericosti$110.iTheitwoiinventoryiitemsiareiidenticali
iniallirespects,iexceptitheipriceipaiditoiacquireithem.iTheibusinessiusesit
heiLast-in,ifirst-
outi(LIFO)icostiflowimethod.iIfiitemi101iisisolditoiaicustomer,itheiamount
iassigneditoicostiofigoodsisoldiisi______.i-iCorrectiAnswer-$100
Reason:
Regardlessiofiwhichiitemiisisold,iLIFOirequiresitheicostiofitheilastiitemitoi
beichargeditoicostiofigoodsisold.
BensoniCompanyipurchaseditwoiidenticaliinventoryiitems.iTheiitemipur
chasedifirsticosti$40.iTheisecondiitemicosti$42.iIfioneiofitheiitemsiwereis
, old,iwhichicostiflowimethodiwouldiproduceitheihighestiamountioficostio
figoodsisold?i-iCorrectiAnswer-lastiinifirstiout
costiofigoodsiavailableiforisaleiisitheiamountiofithei_____.i-
iCorrectiAnswer-
beginningiinventoryi+ipurchasesimadeiduringitheiaccountingiperiod
BensoniCompanyihadibeginningiinventoryiofi150iunitsithaticosti$200iea
ch.iDuringitheiyear,iBensonimadeitwoiinventoryipurchases:iPurchasei1if
ori500iunitsithaticosti$210ieachiandiPurchasei2ifori350iunitsithaticosti$2
20ieach.iDuringitheiyear,iBensonisoldi700iunits.iIfiBensoniusesiLIFO,irepo
rtediendingiinventoryiequalsi______.i-iCorrectiAnswer-$61,500.
Reason:
Purchasei2i(350iunitsi×i$220)i+ipurchasei1i(350iunitsi×i$210ieach)i=i$150,
500icostiofigoodsisold;i$212,000icostiofigoodsiavailableiforisalei-
i$150,500icostiofigoodsisoldi=$61,500.
BensoniCompanyihadibeginningiinventoryiofi150iunitsithaticosti$200iea
ch.iDuringitheiyear,iBensonimadeitwoiinventoryipurchases:iPurchasei1if
ori500iunitsithaticosti$210ieachiandiPurchasei2ifori350iunitsithaticosti$2
20ieach.iDuringitheiyear,iBensonisoldi700iunits.iIfiBensoniusesiLIFO,icosti
ofigoodsisoldiequalsi______.i-iCorrectiAnswer-$150,500
BensoniCompanyihadibeginningiinventoryiofi150iunitsithaticosti$200iea
ch.iDuringitheiyear,iBensonimadeitwoiinventoryipurchases:iPurchasei1if
ori500iunitsithaticosti$210ieachiandiPurchasei2ifori350iunitsithaticosti$2
20ieach.iDuringitheiyear,iBensonisoldi700iunits.iIfiBensoniusesiWeighted
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller professoraxel. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82191 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now