Term
| Inventory for a manufaturing company consists of ____, ____, and ____. |
|
Definition
| raw materials, work in process, and finished goods. |
|
|
Term
| A ____ inventory system continuously tracks and records both changes in inventory quantity and inventory cost. |
|
Definition
|
|
Term
| A ____ inventory system adjusts inventory and records both changes in inventory quantity and inventory cost. |
|
Definition
|
|
Term
| Inventory shipped ____ is included in the purchaser's inventory as soon as the merchandise is shipped. |
|
Definition
|
|
Term
| Inventory shipped ____ is included in the purchaser's inventory only after it reaches the purchaser's location. |
|
Definition
|
|
Term
| Goods held on cosignment are included in the inventory of the cosigner until ________. |
|
Definition
|
|
Term
| Purchase discount not taken are included as ____ using the gross method and as ____ using the net method. |
|
Definition
| purchases, interest expense |
|
|
Term
| By either the gross or net method of accounting for purchase discounts, ____ is reduced by discounts taken |
|
Definition
|
|
Term
| The ____ method matches a specific purchase price with each item sold or each item remaining in ending inventory. |
|
Definition
|
|
Term
| The ____ method assumes that items sold and items in ending inventory come from a mixture of all goods available for sale. |
|
Definition
|
|
Term
| The weighted-average unit cost in a perpetual inventory system becomes a moving average unit cost. A new weighted-average unit cost is calculated each time additional units are ____. |
|
Definition
|
|
Term
| The ____ method assumes that items sold are those acquired first. |
|
Definition
| first-in, first-out (FIFO) |
|
|
Term
| Ending inventory applying the ____ method consists of items acquired first. |
|
Definition
|
|
Term
| If unit costs are ____, LIFO will result in a higher cost of goods sold and lower ending inventory than FIFO. |
|
Definition
|
|
Term
| IRS regulations require that if a company uses LIFO to measure ____, the company must also use LIFO for ____. |
|
Definition
| taxable income, external financial reporting |
|
|
Term
| If costs have been rising, LIFO liquidations produce ____ net income than would have resulted if the liquidated inventory were included in cost of goods sold at current costs. |
|
Definition
|
|
Term
| The ____ indicates the percentage of each sales dollar available to cover expenses and provide a profit. |
|
Definition
|
|
Term
| Dollar-value LIFO views inventory as a quantity of ____ instead of a physical quantity of goods. |
|
Definition
|
|
Term
| The starting point in dollar-value LIFO is determining the current year's ending inventory valued at ____ costs. |
|
Definition
|
|
Term
| Step 3 of the dollar-value LIFO technique converts each layer's base year cost to layer year cost using the ____. |
|
Definition
| cost index for the year it was acquired. |
|
|
