ACCT 3313 CHAPTERS 8 & 9 EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026

ACCT 3313 CHAPTERS 8 & 9 EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026 type of inventory - Answers merchandise manufacturing merchandise inventory - Answers -retail companies -purchase price of goods - other costs necessary to get the goods in condition and location for sale Manufacting inventories - Answers -manufacturing company -raw materials and component parts -works (goods) in process (material + labor+ overhead) -finished goods (material + labor + overhead) disclosure principal - Answers states that financial statements should report enough information for outsiders to make knowledgeable decisions about the company information should be relevant and represented faithfully types of inventory system - Answers periodic perpetual periodic inventory system - Answers -inventory account reflects only the begining balance of inventory throughout the year - all acuisitions of goods during the year are recorded in purchases account -cogs is not recorded when inventory is sold perpetual inventory system - Answers -inventory account reflects all transactions during the year affecting inventory - cogs is recorded as eash sale is made along with the related sales revenue Which of the following statements about the types of inventory is (are) correct? (Select all that apply.) - Answers -When the manufacturing process is complete, the cost of the related inventory items is transferred into finished goods. -Inventory is classified as an asset in the balance sheet until it is sold, at which time the cost is transferred to cost of goods sold in the income statement. Abbott Company uses a perpetual inventory system. When does Abbott record transactions relating to its inventory? - Answers Sales revenue and cost of goods sold are both recorded at the time of the sale Barrington Company began the year with inventory of $100,000. During the year, the company purchased inventory in the amount of $750,000. Sales revenue for the year totaled $800,000. A physical count determined the cost of inventory at the end of the year to be $90,000. The adjusting entry needed at the end of the year under a periodic inventory system includes a: - Answers Debit to Cost of Goods Sold for $760,000. Hales Inc. ships goods on December 30 to Osher Inc., who receives the goods on January 2. Both companies have December 31 year-ends. If the goods are shipped f.o.b. shipping point, which of the following statements is (are) correct? (Select all that apply.) - Answers -Osher will include the goods in its December 31 inventory. -Hales will record the sale on December 30. -Osher will record the purchase on December 30. On December 15, Reynolds Inc. ships goods on consignment to Manella Inc., who receives the goods on December 20. Manella sells the goods to a customer on January 5 of the following year. Both companies have December 31 year-ends. Which of the following statements is correct? - Answers Reynolds will include the goods in its December 31 inventory. Bluestein Inc. purchases goods from one of its suppliers and incurs freight charges to have the goods delivered. The company uses a perpetual system. Which of the following statements is correct? - Answers Bluestein will record the freight charges in its Inventory account Platter Inc. purchases goods from a supplier and later returns those goods. Platter uses a perpetual system. Which of the following statements is correct? - Answers Platter will record the return by reducing its Inventory account. Platen purchased inventory on August 17 and received an invoice with a list price amount of $5,900 and payment terms of 4/10, n/30. Platen uses the net method to record purchases. For what amount should Platen record the purchase? - Answers 5664 Jameson Company uses average cost and a perpetual system. On January 1, the company had 600 units of inventory at an average cost of $55 per unit for a total cost of $33,000. The company purchased and sold inventory during the month as follows: Purchases:January 10: 1,000 units at $59 = $59,000January 20: 800 units at $62 = $49,600 Sales:January 12: 1,200 unitsJanuary 28: 900 units What is the average cost per unit that should be used to determine the cost of the units sold on January 28? (Round your answer to two decimal points.) - Answers 60.50 Otis Corp. uses a periodic system and the FIFO method. Otis had beginning inventory of 30 units purchased at $120 each and made the following purchases during the year: Jan. 15: 34 units at $110May 30: 61 units at $84Oct. 20: 160 units at $60 Sales during the year totaled 271 units. What is the cost of ending inventory? - Answers 840 Carrington Corp. uses a periodic system and the LIFO method. Carrington had beginning inventory of 30 units purchased at $120 each and made the following purchases during the year: Jan. 15: 34 units at $110May 30: 61 units at $84Oct. 20: 160 units at $60 Sales during the year totaled 271 units. What is the cost of ending inventory? - Answers 1680 If costs are rising, which inventory method will result in the highest cost of goods sold? - Answers lifo fob - Answers free on board goods in transit - Answers goods which have been purchased but are still in transit at balance sheeet date: whether these are goods are included depends upon freigh terms goods on consignment - Answers one company has another company sell its good under "consignment". Title does not pass from the consignor to the consignee. consignee is only the agent of the consignor. the consignee receives a commision if the goods are sold; if the goods are not sold, they are returned to the consignor. sales returns - Answers any adjusting entry for sales returns redudeces A/R and net sales entities must make sure these returned goods are icluded in inventory (at cost) and any cogs recorded on the sale of the goods is reduced to reflect the return goods out on consignment - Answers company is consignor