Question : 31) A company has a beginning inventory of $40,000 and : 1230182

 

31) A company has a beginning inventory of $40,000 and purchases during the year of $110,000. The beginning inventory consisted of 3,000 units and 7,000 units were purchased during the year. The average cost per unit is:

A) $11.00.

B) $13.33.

C) $15.00.

D) $15.71.

 

32) A company has a beginning inventory of $40,000 and purchases during the year of $110,000. The beginning inventory consisted of 3,000 units and 7,000 units were purchased during the year. 3,480 units remain in ending inventory. The value of the ending inventory using the average-cost method will be:

A) $38,280.

B) $46,389.

C) $52,200.

D) $97,800.

33) Given the following data, calculate the dollar amount of ending inventory using the average cost method. Round ending inventory to the nearest dollar.

 

Date

Item

Unit

1/1

Beginning inventory

40 units at $12 per unit

3/5

Purchase of inventory

18 units at $14 per unit

5/30

Purchase of inventory

24 units at $18 per unit

12/31

Ending inventory

20 units

 

A) $284.

B) $852.

C) $1,164.

D) $1,419.

34) Given the following data, calculate the cost of goods sold using the average-cost method (round your answer to the nearest dollar).

 

Date

Item

Unit

1/1

Beginning inventory

30 units at $21 per unit

5/10

Purchase of inventory

23 units at $22 per unit

10/9

Purchase of inventory

40 units at $25 per unit

12/31

Ending inventory

37 units

 

A) $850.

B) 1,286.

C) $1,343.

D) $1,419.

 

35) Toyland’s inventory records show the following data at January 31:

 

Beginning inventory Jan. 1

250 units at $8 per unit

Jan. 10 purchase

300 units at $10 per unit

Jan. 22 purchase

110 units at $11 per unit

 

At January 31, 210 units are still on hand. What is the value of the ending inventory at January 31 if Toyland uses the FIFO method?

A) $1,680

B) $2,500

C) $2,210

D) $3,000

 

36) Toyland’s inventory records show the following data at January 31:

 

Beginning inventory Jan. 1

250 units at $8 per unit

Jan. 10 purchase

300 units at $10 per unit

Jan. 22 purchase

110 units at $11 per unit

 

At January 31, 210 units are still on hand. What is the value of the ending inventory at January 31 if Toyland uses the LIFO method?

A) $1,680

B) $2,500

C) $2,210

D) $3,000

37) Given the following data, what is the value of the gross profit as determined by the LIFO method?

 

Sales revenue

300 units at $15 per unit

Purchases

240 units at $10 per unit

Beginning inventory

120 units at $9 per unit

 

A) $540

B) $600

C) $1,560

D) $2,880

 

38) Given the following data, what is the value of the ending inventory as determined by the FIFO method?

 

Sales

280 units

Beginning inventory

260 units at $5 per unit

Purchases

108 units at $8 per unit

 

A) $440

B) $704

C) $1,300

D) $1,410

39) Winter Fun, Inc., had the following data for the month of March:

 

Beginning inventory, March 1

306 units at $20 per unit

March 19 purchase

214 units at $22 per unit

March 27 purchase

208 units at $27 per unit

 

At March 31, 301 units are still on hand. Determine the cost of goods sold for March if Winter Fun uses the FIFO method.

A) $6,020

B) $7,525

C) $8,782

D) $10,434

40) The following data was extracted from the records of Winsam Company:

 

Sales revenue

450 units @ $35 per unit

Beginning inventory

100 units at $16 per unit

Purchases

400 units at $20 per unit

 

Winsam’s most recent balance sheet showed ending inventory of $800. Which method was used for valuing inventory?

A) FIFO

B) LIFO

C) Average-cost

D) Specific identification