Microsoft Exam MB-800 Topic 1 Question 57 Discussion

Actual exam question for Microsoft's MB-800 exam

Question #: 57
Topic #: 1

A company uses the average costing method and inventory periods. Automatic Cost Posting is not enabled.

You close the inventory period for July 2020. You set the value of the Allow Posting From field in General Ledger Setup to August 1, 2020.

You receive and post a purchase invoice for freight charges on August 8, 2020 against a purchase invoice that was posted on July 15, 2020. You run the Adjust cost -- Item entries batch job for August.

You need to identify the adjustment entry related to July after running the batch job.

Which date is automatically selected for the value entry by batch job?

AJuly 15, 2020

BAugust 8, 2020

CAugust 1, 2020

DJuly 1, 2020

Show Suggested Answer

Suggested Answer: A, D

by Penney at Nov 23, 2023, 10:45 AM

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Laticia

1 months ago

Automatic Cost Posting not enabled? Wow, these guys are really going manual with their inventory management. Next thing you know, they'll be using abacuses and carrier pigeons to keep track of their finances.

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Garry

1 months ago

I heard the company uses the 'average costing method' - is that like when you just guesstimate the cost of everything and call it a day? Sounds like a recipe for 'average' accounting, if you ask me.

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Julian

15 days ago

B: Oh, I see. So it's not just guessing, it's a calculated average.

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Leslie

20 days ago

A: It's actually a method where you calculate the average cost of all inventory items.

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Ailene

2 months ago

July 1, 2020? Really? That's like, the start of the year or something. This question is clearly trying to trick us. I'm sticking with the July 15, 2020 date - it just makes the most logical sense.

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Yuette

25 days ago

Definitely, let's go with July 15, 2020 for the adjustment entry.

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Rusty

1 months ago

Yeah, I think so too. It's probably the date the purchase invoice was posted.

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Annamae

1 months ago

I agree, July 1, 2020 doesn't seem right. July 15, 2020 makes more sense.

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Daren

2 months ago

I'm going with option C, August 1, 2020. That's the date the 'Allow Posting From' field was set to in the General Ledger Setup, so the batch job should use that as the default date for the adjustment entry.

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Willis

2 months ago

Hmm, August 8, 2020 sounds like the correct answer, since that's the date the freight charges were posted. But wait, the question says the inventory period for July 2020 was already closed, so I think the answer has to be July 15, 2020.

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Emily

25 days ago

But the freight charges were posted on August 8, 2020.

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Felix

1 months ago

I think the answer is July 15, 2020.

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Ma

2 months ago

The batch job will automatically select the July 15, 2020 date for the value entry, since that's the date of the original purchase invoice being adjusted. This makes perfect sense to me.

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