Acctg 3120 - Chapter 7

Front 1

Finished Goods Inventory

Back 1

Are assets that are held for sale or distribution in the ordinary caourse of operations

Front 2

Work in Process Inventories

Back 2

Assets that are in the process of production for sale or distribution

Front 3

Raw materials and supplies inventory

Back 3

Assets that are in the form of materials or supplies to be consumed in the production process or distributed in the rendering of services

Front 4

Inventory Held for Sale

Inventory Held for Distribution

Inventory Held for Manufacturing

Inventory Held for Consumption

Semi-Expendable Property

Back 4

Inventories of a government entity consists of the following:

Front 5

Semi-Expandable Property

Back 5

It consists of machinery, equipment, furniture, and fixtures and similar items that are not capitalized as PPE

Front 6

Below the 15,000 capitalization threshold for PPE

Back 6

A thing is considered Semi-Expandable Property if their costs are?

Front 7

Cost

Back 7

Inventories are intially measured at?

Front 8

Lower of Cost and Net Realizable Value

Back 8

Good held for sale is initially measured at cost and subsequently measured at?

Front 9

Lower of Cost and Current replacement cost

Back 9

Goods held for Distribution is initially measured at cost and subsequently measured at?

Front 10

Purchase Cost (EXCLUDING trade discounts, rebates, and other deductions)

Direct Cost (Freight cost and Conversion cost)

Back 10

Cost compromises of what?

Front 11

Conversion Cost

Back 11

The costs of labor and production overhead for manufactured items

Front 12

1. Abnormal amounts wasted (materials, labor, production overhead)

2. Selling Costs

3. Administrative overheads

Back 12

Cost exludes what?

Front 13

Acquisition-date FAIR VALUE

Back 13

Inventories received from NON-EXCHANGE transactions are initially measured at?

Front 14

Fair Value LESS cost to sell at the point of harvest

Back 14

Agricultural produce are initially measured at?

Front 15

Lower of Cost or Net Realizable Value/ Current Replacement Cost

Back 15

Inventories from non-exchnage transactions and agricultural produce are subsequently measured at?

Front 16

Net Realizable Value

Back 16

It is the estimated selling price less estimated costs of completion and estimated selling/disposal costs.

Front 17

Current Replacement Cost

Back 17

It is the cost the entity would incur to acquire the asset on the reporting date.

Front 18

1. Specific Identification

2. Weighted average cost

Back 18

Cost of Goods and cost of inventoris on hand are determined using what formulas?

Front 19

Specific Identification

Back 19

This shall be used for items that are not ordinarily interchangeable and those that are segregated for specific projects

Front 20

Cost of Sales

Back 20

It represents the actual costs of the specific items sold.

Front 21

Ending Inventory

Back 21

It represents the actual costs of the specific items on hand.

Front 22

Weighted Average Cost

Back 22

This shall be used for large numbers of items of inventory that are ordinarily interchangeable.

Front 23

Perpetual Inventory System

Back 23

Weighted Average Cost shall be applied under what system?

Front 24

Weighted average cost (Moving Average)

Back 24

Under this formula, a new weighted avergae unit cost is computed after every purchase.

Front 25

Computed Average Cost

Back 25

This is used in determining the cost of goods sold and inventory on hand.

Front 26

Perpetual Inventory System

Back 26

Under this system, purchases, sales, and other transactions affecting inventory are recored in the "inventory" and "cost of sales" accounts, as appropriate.

Front 27

Expense

Back 27

Purchases of supplies and materialsout out of the PETTY CASH FUND for immediate use or on emergency cases are charged directly as?

Front 28

Not used

Back 28

The FIFO cost formula and the Periodic Inventory System are (used or not used) by government entites.

Front 29

1. Sold

2. Distributed

3. Exchanged

4. Consumed

Back 29

The carrying amount of an iventory is recogmized as expense in the peiod it is?

Front 30

Expense

Back 30

The write-down of inventory to its NRV or Current replacement cost is recognized as?

Front 31

Debit: Merchandise Inventory

Credit: Accounts Payable

Back 31

Record to recognize acquisition of Inventory Held for SALE on account

Front 32

Debit: Raw Materials Inventory

Credit: Accounts Payable

Back 32

Record to recognize the acquisition of Inventory Held for MANUFACTURING on account

Front 33

Debit: Semi-expandable property

Credit: Accounts Payable

Back 33

Record to recognize the acquistition of SEMI-EXPANDABLE PROPERTY on account

Front 34

Debit: Welfare Goods for Distribution

Credit: Accounts Payable

Back 34

Record to recognize the acquisition of Inventory Held for DISTRIBUTION on account

Front 35

Debit: Office Supplies Inventory

Credit: Accounts Payable

Back 35

Record to recognize the acquisition of Inventory Held for CONSUMPTION

Front 36

Debit: Semi-Expandable Machinery and Equipment Expenses

Credit: Semi-Expandable Machinery

Back 36

Record to recognize the issuance of semi-expandable machinery to end-users.

Front 37

Debit: WIP Inventory

Credit: Raw Materials Inventory, Direct labor, Manufacturinng Overhead

Back 37

Record to recognize transfer of raw materials, direct labor, and manufacturing overhead to production process.

(Inventory Held for Manufacturing)

Front 38

Debit: Finished Goods Invetory

Credit: WIP Inventory

Back 38

Record to recognize transfer of completed units to finished goods.

(2. Inventory Held for MANUFACTURING)

Front 39

Debit: Cost of Sales

Credit: Finished Goods Inventory

Back 39

Record to recognize cost of sales of finished goods.

(Inventory Held for Manufacturing)

Front 40

Purchase Request Form

Back 40

This is prepared by end users to request for the purchase of items not available on stock.

Front 41

Purchase Request Form

Back 41

This is the basis in preparing the Purchase Order.

Front 42

End users

Back 42

It refers to the individuals who will actually be using the items.

Front 43

True

Back 43

As an internal control, only the appropriate end users are allowed to make purchase requests for the items they need. (T/F)

Front 44

Purchase Order

Back 44

This is prepared by authorized official. This is a document issued to the supplier when making a purchase. It indicates the specifications, quantities, and agreed prices of the items purchased.

Front 45

Purchase Order

Back 45

This serves as the contract between the entity and the supplier.

Front 46

"Received" portion of the Delivery Receipt

Back 46

When the purchased items are delivered, the Propery/Supply Division signs what?

Front 47

Inspection and Acceptance Report

Back 47

This is prepared by the Property/Supply division that will be used by the Property Inspector in inspecting and accepting delivered items.

Front 48

Property Inspector

Back 48

The Property/Supply Division forwards the DR, IAR, and PO to who?

Front 49

Property Inspector

Back 49

The one who inspects the conformance of the delivered items with the specifications in both the PO and DR and indicated the result of the inspection in the IAR.

Front 50

Supplier

Back 50

Rejected deliveries will be returned to who?

Front 51

Property/Supply Division and Accounting Division for recording

Back 51

The Property Inspector forwards the copies of DR, IAR and PO to?

Front 52

Stock card

Back 52

The Property/Supply Division through the Stock Card Keeper, records the accepted deliveries in the?

Front 53

Stock Card

Back 53

This shows the quantities of all the receipts and issuances of inventory, as well as the availablr balance at any given point of time.

Front 54

Supplies Ledger Card

Back 54

The Accounting Division records the accepted deliveries in the books of accounts and in the?

Front 55

Supplies Ledger Card

Back 55

This shows both the quantities and monetary amounts of all receipts and issuances of inventory, as well as the avaialbel balance at any given point of time.

Front 56

Disbursement Voucher

Back 56

This is prepared Property/Supply Division then forwards it together with the supporting documents, to the Accounting Division for processing of payment.

Front 57

Requisition and Issue Slip

Back 57

This is prepared by the end users to request for the issuance of items available on stock.

Front 58

Head of Requesting Individual/Office

Back 58

The one that will approve the Requisition and Issue Slip.

8. Dispositon

Front 59

Property/Supply Division

Back 59

After the approval of the Head of the Requesting Office, the approved Requisition and Issuance Slip is the forwaded to the?

Front 60

Report of Supplies and Materials Issued (RSMI)

Back 60

This is prepared by the Property/Supply Division that will be used by the Stock Card Keeper in updating the Stock Card and the Accounting Division in journalizing the items issued.

Front 61

Waste Materials Report

Back 61

This is prepared by the Property or Supply custodian to report wasted materials, such as destroyes spare parts and other spoilages.

Front 62

Report on the Physical Count of Inventories

Back 62

This is used in reporting the results of physical counts. It shows the balance of inventory, as well as any shortages or overages.

Front 63

Report of Accountability for Accountable Forms

Back 63

This is used to report the movement and status of accountable forms in the possession of an officer.

Front 64

Inventory Custodian Slip

Back 64

This is prepared when issuing semi-expandable property.