13-2 Section B Directions: Complete each of the following statements by writing

Question

13-2 Section B Directions: Complete each of the following statements by writing in the Answers column the letter of the word or words that correctly completes each statement. (3 points each) Answers Scori Which of the following is not true about the effect of an error in the reported ending inventory? (A) After two years, the error "washes out" (B) Operating expenses will be wrong: (C) Overstnted ending inventory causes net income to be overstated, (D) Beginning inventory in the following year will also be wrong: (E) Reported sales will not be affected The inventory system in which a continuous record is maintained for inventory and cost of goods sold is called (A) FIFO, (B) LIFO: (C) periodie (D) perpetual; (E) weighted average A method of allocating merchandisc cost that assigns the most recent purchased costs to the ending inventory shown in the balance sheet is called (A) FIFO: (B) LIFO; (C) weighted average; (D) specific identification (E) periodic 1. 2. 3. Use the following information to answer Questions 4, 5, and 6. During March, Cee's Crafts Co. purchased bolts of specialty cloth. The company uses a periodic system. The accounting records for the month showed the following information #of Units 150 Unit Prics S25.00 Total Pri S 3,750. On hand at the start of the period Purchased during the period 26.50 27.00 28.00 5,300 16,200 11,20 200 600 400 1,350 250 1,100 First purchase Second purchase Third purchase Number of units available for sale On hand at the end of the period Number of units sold during the period 4. Using the LIFO method, the value of the inventory on hand at the end of the period would be (A) S6,400, (B) S6,750, (C) S7,000, (D) S29,450;, (E) $30,050 5. Using the weighted-average method, the value of the inventory on hand at the end of the period would be (A) S6,400, (B) S6,750, (C) $7,000, (D) $29,450, (E) S30,050 6. Using the FIFO costing method, the value of the inventory on hand at the end of the period would be (A) S6,400, (B) $6,750, (C) $7,000 (D) $29,450, (E) $30,050 The accounting principle that allows inventory to be recorded at the lowest of cost or market is the (A) materiality principle, (B) business entity principle; (C) conservatism principle; (D) consistency principle, (E) perpetual principle 7. 2017 Cangage Leaming All Rights Resened May not be sarnad copiad or dauplicated, or postad to a puich

Explanation / Answer

Solution:-

1. (b) Operating expenses will be wrong.

2. (d) Perpetual.

3. (a) FIFO.

4. (c) 7,000

Explanation:-

250 * $28 = $ 7,000

Note:- As per chegg guidelines if more than four part is posted than we liable to answer only first four part.

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