Michael Hazelrig

YTT
Chapter 8
1) Merchandising inventory are goods that are Blank in finished form from wholesalers and
retailers. Answer: Purchased
2) Cost of goods sold =. Answer: Beginning inventory + Net Purchases Ending inventory
3) The periodic system of inventory systems requires? A physical count before ending inventory
and cost of goods sold can be determined.
4) Accounting for goods in transit depends on? Answer: Ownership of goods.
5) Goods held on consignment are included in the inventory of the consignor. Answer: until sold
by the consignee.
6) Assumes that items sold and items in ending inventory come from? Answer: a mixture of all
goods available for sale.
7) Weighted average unit cost = ? Cost of goods available for sale / Quantity available for sale.
8) Perpetual average cost is applied by calculating? Answer: A moving average unit cost each
time additional inventory is purchased.