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A physical inventory account of MegaCorp has a $50,000 balance before considering the following: At what amount should inventory be listed on the balance sheet?
Howard Incorporated is doing inventory. In the inventory process, Howard inadvertently miscategorized a $6,000 shipment of FOB destination goods in transit from a supplier as FOB shipping point. How will this miscategorization impact Howard"s total inventory?
In periods of rising prices when LIFO is used, companies avoid reporting a ________ because a portion of the gross profit must be reinvested to purchase more expensive inventory items.
Early in 2017, Stevenson Incorporated switched to a JIT (just-in-time) inventory system. Financial information for the two most recent years is listed below:
Which of the following errors will have no impact on the company"s total inventory reported on the balance sheet?
Global Industries is a merchandising company that sells goods on consignment. Currently, Global has $14,000 worth of consignment goods in its warehouse that it included in its inventory. What effect will this have on Global"s total inventory?
Accurate Auditing is conducting an inventory count for Blake Industries. Blake intermingles empty boxes with full boxes in the storeroom. How would falsifying its inventory account have affected Blake"s financial statements if the auditors had not discovered the fraud?
Which of the following companies is most likely to have lost sales due to an inventory shortage?• Company 1 has an inventory turnover of 46.3.• Company 2 has an average days in inventory of 18.9 days.• Company 3 has an inventory turnover of 5.4.• Company 4 has an average days in inventory of 32.7.
Long Company began August with 150 units of Product XY having a unit cost of $20 in inventory. Relevant information is listed as follows: If Long Company uses the FIFO inventory cost flow assumption, what is its gross profit for the month?
Goods that were purchased FOB shipping point that were in transit on the balance sheet date: $8,850Good held on consignment for Western Company: $7,525Goods that were purchased FOB destination that were in transit on the balance sheet date: $1,045What is the correct balance for Base Industries" inventory account?
Fundamentals of Corporate Finance11th EditionBradford D. Jordan, Randolph W. Westerfield, Stephen A. Ross
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