Take Test: Unit V Assessment
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Assessment Instructions
QUESTION 1
Which of the following is not recorded in a modern perpetual
inventory system?
Units purchased and cost amount
Units sold and sales and cost amounts
Customer account numbers and balances owed from the sale of
merchandise
inventory
The quantity of merchandise inventory on hand and its cost
5 points Save Answer
QUESTION 2
Which of the following statements is FALSE?
In a perpetual inventory system, the "cash register" at the store
is a computer
terminal that records sales and updates inventory records.
Even in a perpetual inventory system, a business must count
inventory at least

one a year.
Restaurants and small retail stores often use the periodic
inventory system.
In a periodic inventory system, merchandise inventory and
purchasing systems
are integrated with the records for Accounts Receivable and
Sales Revenue.
5 points Save Answer
QUESTION 3
The term "freight out" refers to __________.
transportation costs on purchases
cost of inventory purchased
costs that are not actually paid in cash
transportation costs on sales
5 points Save Answer
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QUESTION 4
If goods are sold on terms free on board (FOB) shipping point,
the __________.

seller normally pays the transportation costs
buyer normally pays the transportation costs
buyer and the seller split the transportation costs
shipping company bears the transportation cost
5 points Save Answer
QUESTION 5
Changing from the LIFO (Last-In, First-Out) to the specific
identification method of
valuing inventory ignores the principle of __________.
conservatism
consistency
disclosure
materiality
5 points Save Answer
QUESTION 6
A company that uses the perpetual inventory system purchases
inventory for
$61,000 on account, with terms of 3/10, n/30. Which of the
following is the journal
entry to record the payment made within 10 days?
A debit to Accounts Payable for $61,000, a credit to Cash for
$59,170, and a
debit to Merchandise Inventory for $1,830
A debit to Accounts Payable for $61,000, a credit to
Merchandise Inventory for
$1,830, and a credit to Cash for $59,170
A debit to Merchandise Inventory for $1,830, a debit to
Accounts Payable for

$61,000, and a credit to Cash for $62,830
A debit to Accounts Payable for $59,170, a debit to
Merchandise Inventory for
$1,830, and a credit to Cash for $61,000
5 points Save Answer
QUESTION 7
What does "2/10" mean, with respect to "credit terms of 2/10,
n/30"?
A discount of 2 percent will be allowed if the invoice is paid
within 10 days of the
invoice date.
Interest of 2 percent will be charged if the invoice is paid after
10 days from the
date on the invoice.
A discount of 10 percent will be allowed if the invoice is paid
within two days of
the invoice date.
Interest of 10 percent will be charged if invoice is paid after
two days.
5 points Save Answer
QUESTION 8
Which of the following is subtracted from net sales revenue to
arrive at gross profit
on a multi-step income statement?
Cost of goods available for sale
Cost of goods sold

Sales discounts and sales returns and allowances
Operating expenses
5 points Save Answer
QUESTION 9
Which of the following is true of freight in?
It is an administrative expense.
It is a selling expense.
It is the transportation cost on purchases.
It is the transportation cost on sales.
5 points Save Answer
QUESTION 10
A company decides to ignore a very small error in its inventory
balance. This is an
example of the application of the __________.
conservatism
materiality concept
disclosure principle
consistency principle
5 points Save Answer
QUESTION 11
A company that uses the perpetual inventory system purchased
500 pallets of
industrial soap for $10,000 and paid $750 for the freight-in. The
company sold the

whole lot to a supermarket chain for $14,000 on account. The
company uses the
specific-identification method of inventory costing. Which of
the following entries
correctly records the cost of goods sold?
Cost of Goods Sold 10,750
Merchandise Inventory 10,750
5 points Save Answer
Merchandise Inventory 10,750
Cost of Goods Sold 10,750
Cost of Goods Sold 10,000
Sales Revenue 10,000
Cost of Goods Sold 10,000
Merchandise Inventory 10,000
QUESTION 12
Which of the following is the correct formula to calculate
inventory turnover?
Inventory turnover = Cost of goods sold / Average merchandise
inventory
Inventory turnover = Cost of goods sold × Average merchandise
inventory
Inventory turnover = Cost of goods sold + Average merchandise
inventory

Inventory turnover = Cost of goods sold - Average merchandise
inventory
5 points Save Answer
QUESTION 13
Misty, Inc. had 24,000 units of ending inventory that were
recorded at the cost of
$8.00 per unit using the FIFO method. The current replacement
cost is $4.50 per
unit. Which of the following amounts would be reported as
Ending Merchandise
Inventory on the balance sheet using the lower-of-cost-or-
market rule?
$192,000
$300,000
$216,000
$108,000
5 points Save Answer
QUESTION 14
A company purchased 100 units for $30 each on January 31. It
purchased 400 units
for $20 each on February 28. It sold a total of 470 units for
$110 each from March 1
through December 31. If the company uses the last-in, first-out
inventory costing
method, calculate the amount of ending inventory on December
31. (Assume that

the company uses a perpetual inventory system.)
$600
5 points Save Answer
$2,400
$900
$30
QUESTION 15
Which of the following inventory costing methods uses the
costs of the oldest
purchases to calculate the value of the ending inventory?
Specific identification
Weighted-average
Last-in, first-out
First-in, first-out
5 points Save Answer
QUESTION 16
Which of the following is the correct formula to calculate
weighted-average unit cost
for merchandise inventory?

Weighted-average unit cost = Cost of goods available for sale +
Number of units
available
Weighted-average unit cost = Cost of goods available for sale ×
Number of units
available
Weighted-average unit cost = Cost of goods available for sale -
Number of units
available
Weighted-average unit cost = Cost of goods available for sale /
Number of units
available
5 points Save Answer
QUESTION 17
A company purchased 400 units for $20 each on January 31. It
purchased 520 units
for $26 each on February 28. It sold a total of 560 units for $40
each from March 1
through December 31. What is the amount of ending inventory
on December 31 if
the company uses the first-in, first-out (FIFO) inventory costing
method? (Assume
that the company uses a perpetual inventory system.)
$9,360
$4,960
$7,200
$2,240
5 points Save Answer

QUESTION 18
A company that uses the perpetual inventory system sold goods
to a customer on
account for $4,000. The cost of the goods sold was $2,000.
Which of the following
journal entries correctly records this transaction?
Cost of Goods Sold 4,000
Sales Revenue 4,000
Merchandise Inventory 4,000
Costs of Goods Sold 4,000
Accounts Receivable 4,000
Cash 4,000
Cost of Goods Sold 2,000
Merchandise Inventory 2,000
Accounts Receivable 4,000
Sales Revenue 4,000
Cost of Goods Sold 2,000
Merchandise Inventory 2,000
5 points Save Answer
QUESTION 19
A company that uses the perpetual inventory system sold goods
for $2,500 to a
customer on account. The company had purchased the inventory

for $500. Which of
the following journal entries correctly records the cost of goods
sold?
Cost of Goods Sold 500
Sales Revenue 500
Merchandise Inventory 500
Cost of Goods Sold 500
Cost of Goods Sold 500
Merchandise Inventory 500
Accounts Receivable 500
Sales Revenue 500
5 points Save Answer
QUESTION 20
Under the weighted-average method for inventory costing, the
cost per unit is
determined by __________.
dividing the cost of goods available for sale by the number of
units available
dividing the cost of goods available for sale by the number of
units in beginning
inventory
multiplying the number of units purchased with the weighted-
average cost

multiplying the cost of goods available for sale by the ending
weighted-average
cost of the previous accounting period
5 points Save Answer
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Choose a real project that you are working on such as progress
in a class, your degree, a home project, a work project, self-
improvement, etc.
Jot down notes about what you have finished, what you are
working on, and what you haven't started.
Collect information such as dates, names, costs, etc. Specific
details are important.
Remember to use the memo format style in typing this progress
report.
This report should be about two or more pages when you are
completed.
The draft will be much shorter than your final report.
Follow a logical structure: introduction, what is finished, what
is underway, what is left to do, and a conclusion
Use specifics such as dates, proper names, numbers, etc.
Related visuals may also help your report such as pictures,
graphs, charts, tables, etc. Include at least one visual.
March 27, 2013

To: Chris Smith
From: Tom Eagle
Subject: Progress on Document Retention and Destruction
Project
I have been currently working towards identifying and cleaning
out our document storage area. The task is to reduce the amount
of documents by at least 25%. Along with destroying our
document inventory all remaining documents marked for
retention need to be brought up to government compliance.
Logistics prior to starting task
Our document inventory has around 1500 documents, of those
1500 documents about 40% of the documents are out of
compliance with government regulations. To accurately
identify documents out of compliance I first need to identify
which documents are able to be destroyed. To do this, help
from program managers and other parties from the technical
staff will need to be involved.
Once documents have been reviewed and approved for being
destroyed I will bring in an outside contractor such as Data
Destruction. This will save the company time and expense with
me personally not destroying the documents. The costs will be
discussed in the next section. While documents being reviewed
are marked for destruction, the documents needing to be
retained will be managed and logged into our company database
by me.
What has been Completed

With the amount of documents being stored there were
numerous programs involved. I have worked with technical
staff and program managers and have completed the review of
about 90% of the documents. Out of that percentage about 30%
have been marked for destruction and have been destroyed.
Bringing in the contractor has been a tremendous help to the
organization. The first day she was on site she destroyed over
150 documents and worked six hours to support this project.
Bringing her in has saved the company over a $100 and 6 hours
of time it would have tied my schedule up.
There have been 200 documents that were marked for retention
for future projects and all have been uploaded into our company
database. Along with uploading the documents into the
database I have brought each of the 200 documents into
government compliance.
What still need to be Completed
There are still documents that have not been reviewed and staff
has not determined whether some documents can be destroyed
or retained. I am continuing to push on this to be completed.
One program manager is too busy with current projects of his
own and has not had free time to complete his review. Another
group of documents that we are in need of a resolution are on
hold because of communications between our contracts
department and the government.
Once these documents have been decided on, the review portion
of this task will be completed. There are still around 300
documents waiting destruction. The contractor has been
scheduled for an eight hour shift sometime in the beginning of
April to destroy these documents. Once the remaining

documents have been assigned destruction or retention I will
upload the retained documents into the company database.
Conclusion
The next government audit is not until the fall and I am pretty
positive that this task will be completed by then. It is important
to me that we stay compliant and I have a personal goal of
completing this project before June 2013. The initial task of
reducing the inventory by 25% has been surpassed and I am now
attempting to reduce the inventory by 50%.
Progress Reports: Introductions, Sections, Conclusions &
Graphics
ENG1131

Make a Choice Now
Look over your discussion group posting
Choose a current project to write about
Use the information you have already written

Basic Set-up
Follow memo format

Open a Word document
Type REPORT at the top
Type your tags
You can use my name for the “To” or whoever would be most
relevant
Your subject line must reflect the nature of your project

Introductions
What is the purpose of an introduction?
An introduction should present the subject of the report to the
reader.
The introduction helps guide the reader—your audience.
The introduction gives an overview of the project—a summary.
Heading? Your choice.

Different Types of Introductions
State Thesis and then introduce
Background
Definitions if needed
Connect to reader’s interests or values
Anecdote
Question and introduce
Type something now

The Sections
There are three required sections: completed, underway, and not
started
Type in “working” headings now
Short phrases

Against left margin
Bold type

The Sections
“What is Completed”
All the information on what is done
Start your typing, “Here is what is done…”
Use as many specifics as you can
Dates
Titles
Proper nouns-person, place, thing
Costs, money
Measurements-lengths, weights, mass, etc.
Description

Sections
“What is Underway”
This means you have started but not finished these items
Start your typing, “Now, here is what is underway…”
Once again, be specific.

Sections
“What Remains to be Started”
Start typing, “Lastly, here is what is left to start…”
You may not have as many specific here.
Make predictions
Project dates, costs, etc.
Discuss you plan for completion

Conclusions
Conclusions bring a sense of closing to the end of your report.
Add value to project
Summarize main points
Make recommendations for change
Make a prediction about completion
Type a heading for this section.
Write this when your report is done

Adding Visuals & Graphics
Visuals add to the report
Placement is key
Re-size using Word
Wrap text around graphic
Demonstration

Types of Graphics
Pictures
Tables or charts
Logos or symbols
Graphs
Lists

Progress Report Requirements
Memo format
Bolded headings
Approximately two pages—use page numbers
Use of specifics—especially dates and names
At least one graphic

Questions
Email me with any questions
Review the Content Pages
Look over your textbook