Acct Ch13
CHAPTER 9
INVENTORIES: ADDITIONAL VALUATION
ISSUES
MULTIPLE CHOICE—Conceptual
Answer
d d c b a c d b d a d a a d b d c a d b a b c c No.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
*22.
23.
*24.
Knowledge of lower of cost or market valuations.
Appropriate use of LCM valuation.
Definition of "market" under LCM.
Definition of "ceiling."
Definition of "designated market value."
Application of lower of cost or market valuation.
Effect of inventory write-down.
Net realizable value under LCM.
Definition of "net realizable value."
Valuation of inventory at net realizable value.
Appropriate use of net realizable value.
Material purchase commitments.
Loss recognition on purchase commitments.
Appropriate use of the gross profit method.
Appropriate use of the gross profit method.
Advantage of retail inventory method.
Conventional retail inventory method.
Assumptions of the retail inventory method.
Appropriate use of the retail inventory method.
Markdowns and the conventional retail method.
Markups and the conventional retail method.
Knowledge of the cost ratio for retail inventory methods.
Inventory turnover ratio.
Dollar-value LIFO retail method.
MULTIPLE CHOICE—Computational
Answer
a c c d d a a b c
No.
Description
25.
26.
27.
28.
29.
30.
31.
32.
33.
Value inventory at LCM.
Relative sales method of inventory valuation.
Entry for purchase commitment loss.
Calculate cost of goods sold given a markup on cost.
Calculate merchandise purchases given a markup on cost.
Calculate total sales from cost information.
Markup on cost equivalent to a markup on selling price.
Estimate ending inventory using gross profit method.
Calculate ending inventory using gross profit method
*This topic is dealt with in an Appendix to the chapter.
MULTIPLE CHOICE—Computational
(cont.)
Answer
No.
Description
.
INVENTORIES: ADDITIONAL VALUATION
ISSUES
MULTIPLE CHOICE—Conceptual
Answer
d d c b a c d b d a d a a d b d c a d b a b c c No.
Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
*22.
23.
*24.
Knowledge of lower of cost or market valuations.
Appropriate use of LCM valuation.
Definition of "market" under LCM.
Definition of "ceiling."
Definition of "designated market value."
Application of lower of cost or market valuation.
Effect of inventory write-down.
Net realizable value under LCM.
Definition of "net realizable value."
Valuation of inventory at net realizable value.
Appropriate use of net realizable value.
Material purchase commitments.
Loss recognition on purchase commitments.
Appropriate use of the gross profit method.
Appropriate use of the gross profit method.
Advantage of retail inventory method.
Conventional retail inventory method.
Assumptions of the retail inventory method.
Appropriate use of the retail inventory method.
Markdowns and the conventional retail method.
Markups and the conventional retail method.
Knowledge of the cost ratio for retail inventory methods.
Inventory turnover ratio.
Dollar-value LIFO retail method.
MULTIPLE CHOICE—Computational
Answer
a c c d d a a b c
No.
Description
25.
26.
27.
28.
29.
30.
31.
32.
33.
Value inventory at LCM.
Relative sales method of inventory valuation.
Entry for purchase commitment loss.
Calculate cost of goods sold given a markup on cost.
Calculate merchandise purchases given a markup on cost.
Calculate total sales from cost information.
Markup on cost equivalent to a markup on selling price.
Estimate ending inventory using gross profit method.
Calculate ending inventory using gross profit method
*This topic is dealt with in an Appendix to the chapter.
MULTIPLE CHOICE—Computational
(cont.)
Answer
No.
Description
.