1. An example of an inventoriable cost wouldbe:
a) Shipping fees
b) Advertising flyers
c) Sales commissions
d) Direct materials
2. Direct materials cost is Rs. 80,000. Direct laborcost is Rs. 60,000. Factory overhead is Rs. 90,000. Beginning goodsin process were Rs. 15,000. The cost of goods manufactured is Rs.245,000. What is the cost assigned to the ending
goods in process?
a) Rs. 45,000
b) Rs. 15,000
c) Rs. 30,000
d) There will be no ending Inventory
3. The FIFO inventory costing method (when using underperpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways?
a) First to be allocated to the ending inventory
b) Last to be allocated to the cost of goods sold
c) Last to be allocated to the ending inventory
d) First to be allocated to the cost of good sold
4. Heavenly Interiors had beginning merchandiseinventory of Rs. 75,000. It made purchases of Rs. 160,000 andrecorded sales of Rs. 220,000 during November. Its estimated grossprofit on sales was 30%. On November 30, the store was destroyed byfire. What was the value of the merchandise inventory loss?
a) Rs. 154,000
b) Rs. 160,000
c) Rs. 235,000
d) Rs. 81,000
5. Inventory control aims at:
a) Achieving optimization
b) Ensuring against market fluctuations
c) Acceptable customer service at low capital investment
d) Discounts allowed in bulk purchase