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    Name: Date: Score:: Property of STI

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    Palileo Kids
    This document contains a mock board exam with multiple choice questions and problems related to inventory accounting. The multiple choice section tests concepts like the definition of inventories, types of inventory like raw materials and work-in-process, inventory costing methods, and shipping terms. The problem section provides quantitative inventory transactions for a company and asks the test taker to calculate ending inventory values using different inventory systems and costing methods.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Name: Date: Score:: Property of STI

    Uploaded by

    Palileo Kids
    394 views2 pages
    This document contains a mock board exam with multiple choice questions and problems related to inventory accounting. The multiple choice section tests concepts like the definition of inventories, types of inventory like raw materials and work-in-process, inventory costing methods, and shipping terms. The problem section provides quantitative inventory transactions for a company and asks the test taker to calculate ending inventory values using different inventory systems and costing methods.

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    business law

    Original Title

    04_Activity_2(2)

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    This document contains a mock board exam with multiple choice questions and problems related to inventory accounting. The multiple choice section tests concepts like the definition of inventories, types of inventory like raw materials and work-in-process, inventory costing methods, and shipping terms. The problem section provides quantitative inventory transactions for a company and asks the test taker to calculate ending inventory values using different inventory systems and costing methods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    394 views2 pages

    Name: Date: Score:: Property of STI

    Uploaded by

    Palileo Kids
    This document contains a mock board exam with multiple choice questions and problems related to inventory accounting. The multiple choice section tests concepts like the definition of inventories, types of inventory like raw materials and work-in-process, inventory costing methods, and shipping terms. The problem section provides quantitative inventory transactions for a company and asks the test taker to calculate ending inventory values using different inventory systems and costing methods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    BM1706

    Name: DATE: SCORE:

    MOCK BOARD

    I. Multiple Choice (10 items x 3 points)


    Read and analyze each item. Encircle the letter of the correct answer.

    1. Which of the following is NOT included in the definition of inventories under IAS 2 Inventories?
    A. Held for sale in the ordinary course of the business
    B. In the process of production for such sale
    C. In the form of materials or supplies to be consumed in the production process or in rendering
    of services
    D. None of the above
    2. Which of the following are the goods and materials on hand but not yet placed into production?
    A. Raw materials
    B. Work-in-process inventory
    C. Finished goods inventory
    D. None on the above

    3. It includes cost of the unfinished product or goods still under the production process.
    A. Raw materials
    B. Work-in-process inventory
    C. Finished goods inventory
    D. None on the above

    4. It is a type of inventory which is completed but unsold at the end of a period.


    A. Raw materials
    B. Work-in-process inventory
    C. Finished goods inventory
    D. None on the above

    5. Which shipping term means that the title is passed to the buyer the moment the seller delivers the
    goods to the common carrier who act as an agent for the buyer?
    A. Free Alongside
    B. Cost, Insurance, and Freight
    C. FOB Shipping point
    D. FOB Destination

    6. Which shipping term means that the title is passed to the buyer only when he receives the goods from
    the common carrier?
    A. Free Alongside
    B. Cost, Insurance and Freight
    C. FOB Shipping point
    D. FOB Destination

    7. These are specially ordered and manufactured goods based on the customer’s preference.
    a. Segregated goods
    b. Goods under conditional sale
    c. Goods sold with buyback agreement

    04 Activity 2 *Property of STI


    Page 1 of 2
    BM1706

    d. Goods sold with refund offers

    8. It is an inventory system, which regularly updates the record of its inventory.


    a. Periodic System
    b. Perpetual System
    c. Direct System
    d. Allowance System

    9. It is an inventory costing method, which implies that the ending inventory comprises the latter
    purchases/production made by the company.
    a. Specific Identification
    b. Weighted Average Method
    c. LIFO Method
    d. FIFO Method

    10. It is the estimated selling price in the ordinary course of business less the estimated costs of completion
    and the estimated costs necessary to make the sale.
    a. Net realizable value
    b. Historical value
    c. Book value
    d. Salvage value

    II. Problem Solving (4 items x 5 points)


    The Big Rig Company, a multi-product firm, presented the information below concerning one of their products,
    Infusion-39:
    Date Transaction Quantity Cost
    1/1 Beginning Inventory 1,000 P 12
    2/4 Purchase 2,000 18
    2/20 Sale 2,500
    4/2 Purchase 3,000 22
    11/4 Sale 2,000

    Requirement:
    Compute the cost of ending inventory, assuming that Big Rig uses:
    a. Periodic system, FIFO cost method;
    b. Perpetual system, FIFO cost method;
    c. Periodic system, average-cost method; and
    d. Perpetual system, moving-average-cost method.

    Rubric for grading


    PERFORMANCE INDICATOR POINTS
    Correct account and amounts are used 3
    Computed final amounts are correct/ balanced 2
    TOTAL 5

    04 Activity 2 *Property of STI


    Page 2 of 2

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