Question 13Excess inventory results in every one of the adhering to excepta.increased storage expenseb.lost salesc.tied-up funds that can be offered to enhance operationsd.increased danger of loss due to damage2 points inquiry 14Determine the complete value the the merchandise making use of net realizable value.ItemQuantitySelling PriceCommissionDoll10$7$2Horse5 9 3a.$25b.$115c.$80d.$352 points inquiry 15When making use of a perpetual inventory system, the newspaper entry to document the cost of merchandise offered is:a.debit expense of was Sold; credit transaction Salesb.debit cost of merchandise Sold; credit Merchandise Inventoryc.debit was Inventory; credit expense of goods Soldd.No journal entry is do to record the expense of merchandise sold.2 points concern 16During the acquisition of its physics inventory ~ above December 31, 2014, Barry’s bike Shop erroneously counted its inventory together $350,000 rather of the correct amount that $280,000. The result on the balance sheet and income statement would certainly bea.assets exaggeration by $70,000; retained earnings understated by $70,000; andnet earnings statement understated by $70,000b.assets and also retained revenue overstated by $70,000; andnet revenue understated by $70,000c.assets overstated by $70,000; retained earnings understated by $70,000; andno impact on the revenue statementd.assets, maintained earnings, and net earnings all exaggeration by $70,0002 points question 17Emma Co. Sold to Isabella Co. Goods on account FOB shipping point, 2/10, network 30, because that $15,000. Emma Co. Prepaid the $750 shipping charge. Utilizing the perpetual perform method, which of the following entries will Isabella Co. Make to record payment of the merchandise if Isabella Co. Pays within the discount period?a.Accounts Payable—Emma Co., debit $15,000; Cash, credit transaction $15,000b.Accounts Payable—Emma Co., debit $15,450; Cash, credit transaction $15,450c.Accounts Payable—Emma Co., debit $15,750; was Inventory, debit $300; Cash, credit transaction $16,050d.Accounts Payable—Emma Co., debit $15,000; Freight-In, debit $750; Cash, credit transaction $15,7502 points question 18Pierce company sold to Stanton firm merchandise ~ above account FOB shipping point, 2/10, net 30, for $20,000. Pierce prepaid the $500 shipping charge. Which of the complying with entries go Pierce do to document this sale?a.Accounts Receivable—Stanton, debit $19,600; Sales, credit transaction $19,600, andAccounts Receivable—Stanton, debit $500; Cash, credit $500b.Accounts Receivable—Stanton, debit $20,000; Sales, credit transaction $20,000, andDelivery Expense, debit $500; Cash, credit transaction $500c.Accounts Receivable—Stanton, debit $20,100; Sales, credit $20,100d.Accounts Receivable—Stanton, debit $20,000; Sales, credit $20,0002 points question 19A company using the routine inventory system has merchandise perform costing $210 top top hand at the start of the period. During the period, goods costing $635 is purchased. In ~ year-end, merchandise perform costing $160 is top top hand. The price of merchandise offered for the year isa.$795b.$685c.$265d.$6352 points concern 20A company using the regular inventory system has actually the adhering to account balances: goods Inventory at the start of the year, $3,600; Freight-In, $650; Purchases, $10,700; purchases Returns and also Allowances, $1,950; purchase Discounts, $330.


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The cost of merchandise purchased is same toa.$8,420b.$9,070c.$12,670d.$17,2302 points inquiry 21The inventory system employing bookkeeping records that repeatedly disclose the amount of list is calleda.periodicb.physicalc.retaild.perpetualQuestion 11The following lots that a certain commodity were available for sale during the year:Beginning inventory10 devices at $30First purchase25 devices at $32Second purchase30 devices at $34Third purchase10 devices at $35The firm supplies the periodic system and there room 20 units of the commodity top top hand in ~ the end of the year. What is the quantity of inventory at the finish of the year rounded come nearest dollar according to the average cost method?a.$620b.$690c.$659d.$655