ACCA Inventory Valuation — practice questions
35 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice ACCA Inventory Valuation in the app →A merchandiser buys 10 units at $1, 10 units at $2, and 10 units at $3, for 30 identical units in total. UsingA merchandiser holds 30 identical units bought as 10 at $1, 10 at $2, and 10 at $3. The company sells one unitA company holds 30 identical units costing $60 in total (10 at $1, 10 at $2, 10 at $3). Using the average costUnder IFRS, which inventory cost-flow assumptions are permitted for valuing inventory?A merchandiser records entries in an inventory cost grid for purchases, cost of merchandise sold, and the runnIn a perpetual inventory cost grid, which entry is made to the Inventory Balance and Cost of Sales when a saleA perpetual-system merchandiser has these June transactions for one product: 6/1 beginning 10 units at $4; 6/5A perpetual-system merchandiser has: 6/1 beginning 10 units at $4; 6/5 sell 1; 6/10 buy 10 at $5; 6/16 sell 12Using the FIFO perpetual results for June (19 units sold at $10 each; cost of merchandise sold $85), what is tA merchandiser sold 1 unit on 6/5, 12 units on 6/16, and 6 units on 6/30, each at a selling price of $10. WhatUnder the LIFO perpetual method, when an item is resold, which costs make up the cost of merchandise sold and A perpetual-system merchandiser has: 6/1 beginning 10 units at $4; 6/5 sell 1; 6/10 buy 10 at $5; 6/16 sell 12A perpetual-system merchandiser has: 6/1 beginning 10 units at $4; 6/5 sell 1; 6/10 buy 10 at $5; 6/16 sell 12Under the perpetual average cost method, on 6/10 a merchandiser holds 9 units at $4 ($36) and buys 10 units atUnder the perpetual average cost method, the same June data give a total cost of merchandise sold of $90.70 onFor the same June data under the perpetual system, total cost of merchandise sold is $85 under FIFO, $98 underUnder the perpetual system with rising costs, FIFO cost of sales was $85 and LIFO cost of sales was $98 for thIn the periodic inventory system, how is cost of merchandise sold determined at period end?A periodic-system company had beginning inventory 10 units at $4, plus purchases of 10 units at $5 and 10 unitUnder the periodic FIFO method, 19 of 30 units available are sold (beginning 10 at $4, then 10 at $5, then 10 Under the periodic LIFO method, 19 of 30 units available are sold (beginning 10 at $4, then 10 at $5, then 10 Under the periodic average cost method, 30 units are available at a total cost of $150 and 19 units are sold. Under the periodic average cost method, 30 units cost $150 in total and 11 units remain in ending inventory. WFor one product over a period, FIFO produced the same cost of merchandise sold and ending inventory whether thReporting inventory at the lower of cost and net realisable value is an application of which accounting princiCommodity A has 10 units at a unit cost of $6 and a unit net realisable value of $5. Applying lower of cost anCommodity D has 40 units at a unit cost of $3 and a unit net realisable value of $4. Applying lower of cost anA company values inventory at lower of cost and net realisable value across four commodities. Total cost of alA company holds 200 units of a phone bought at $100 each whose current value has fallen to $60 each, plus 200 Under IFRS, the comparison used to write inventory down when its value falls below cost is cost versus which mWhen a physical inventory count is taken, which item should be EXCLUDED from a company's counted inventory?Goods a company has sold are in transit on a carrier under shipping terms of FOB destination. Should these gooIf a company understates its ending Merchandise Inventory in the physical count, what is the effect on cost ofA company overstates its ending Merchandise Inventory. What is the combined effect on total assets and on stocCorrect ending inventory is $20,000, but a missed item causes only $19,500 to be reported. With sales of $200,