Multiple Choice Questions 1 Goods on consignment

should be included in #2472

Multiple Choice Questions1. Goods on consignment should be included in the inventory of:a.
The consignor but not the consigneeb. Both the consignor and the consigneec. The consignee
but not the consignord. Neither the consignor nor the consignee2. The following items were
included in Venicio Corporation’s inventory account on December 31, 2016:Merchandise out on
consignment,at sales price, including 40% markupon selling price ............... $14,000Goods
purchased, in transit, shippedFOB shipping point .............. 1 2,000Goods held on consignment
by Venicio ...... 9,000What amount should Venicio report as inventory at December 31, 2016?a.
$21,000b. $20,400c. $26,000d. $35,0003. During 2016, R Corp., a manufacturer of chocolate
candies, contracted to purchase 100,000 pounds of cocoa beans at $1.00 per pound, delivery to
be made in the spring of 2017. Because a record harvest is predicted for 2017, the price per
pound for cocoa beans had fallen to $0.80 by December 31, 2016. Of the following journal
entries, the one that would properly reflect in 2016 the effect of the commitment of R Corp. to
purchase the 100,000 pounds of cocoa is:4. Dixon Menswear Shop purchased shirts from Colt
Company on May 28, 2016, and received an invoice with a list price amount of $5,000 and
payment terms of 2/10, n/30. Dixon uses the net method to record purchases. Dixon should
record purchases of:a. $4,000b. $4,900c. $5,000d. $5,1005. The moving average inventory cast
flow assumption is applicable to which of the following inventory systems?6. City Stationers Inc.
had 200 calculators on hand on January 1, 2016, costing $18 each. Purchases and sales of
calculators during the month of January were as follows:City uses a periodic inventory system.
According to a physical count, 150 calculators were on hand at January 31, 2016.The cost of
the inventory on January 31, 2016, under the FIFO method is:a. $400b. $2,700c. $3,100d.
$3,2007. City Stationers Inc. had 200 calculators on hand on January 1, 2016, costing $18
each. Purchases and sales of calculators during the month of January were as follows:City uses
a periodic inventory system. According to a physical count, 150 calculators were on hand at
January 31, 2016.The cost of the inventory on January 31, 2016, under the LIFO method is:a.
$400b. $2,700c. $3,100d. $3,2008. Assuming no beginning inventory, what can be said about
the trend of inventory prices if cost of goods sold computed when inventory is valued using the
FIFO method exceeds cost of goods sold when inventory is valued using the LIFO method?a.
Prices decreased.b. Prices remained unchanged.c. Prices increased.d. Price trend cannot be
determined from information given.9. On December 31, 2015, Kern Company adopted the dollar
value LIFO inventory method. All of Kern’s inventories constitute a single pool. The inventory
on December 31, 2015, using the dollar value LIFO inventory' method was $600,000. Inventory
data for 2016 are as follows:Dec. 31, 2016 inventory at year-end prices ........ $780,000Relevant
cost index at year-end (base year 2015) ....... 120Under the dollar value LIFO inventory method,
Kern’s inventory method, Kern’s inventory on December 31, 2016, would be:a. $650,000b.
$655,000c. $660,000d. $720,00010. When the double-extension approach to the dollar-value
LIFO inventory' cost flow method is used, the inventory' layer added in the current year is
multiplied by an index number. How would the following be used in the calculation of this index
number?
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Multiple Choice Questions 1 Goods on consignment should be included in

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