5. Inventory

Which of the following best describes the inventory turnover ratio at a Frito-Lay plant if the cost of goods sold for the year is \$1,200,000 and the average inventory is \$200,000?

Items held for sale in the normal course of business are referred to as:

If a company understates its count of ending inventory in year 1, which of the following statements is correct?

A reorder point will fall if:

A company started the year with \$10,000 of inventory. If the ending inventory is overstated by \$2,000, what is the effect on net income for the year?

Which of the following is typically created to account for damaged items in inventory?

Completed units that have not yet been sold are found in which of the following accounts?

Good inventory management allows for which type of production operation?

High inventory turnover is beneficial because it allows a company to do which of the following?

Damaged, obsolete (out-of-date), and/or deteriorated goods that can be sold should be reported in the financial statements at:

Which of the following inventory items warrants the use of a single-period inventory model?

Which of the following companies would most likely have the highest inventory turnover?

Inventory which is partially complete is known as:

In the current year, if ending inventory is overstated (and beginning inventory is correct), what is the effect on cost of goods sold and net income for the year?

Among the advantages of cycle counting is that it: