Question : 11) Given the following data, what the cost of ending : 1212649

11) Given the following data, what is the cost of ending inventory rounded to the nearest whole dollar using periodic FIFO?

 

Sales revenue

100 units at $10 per unit

Beginning inventory

50 units at $8 per unit

Purchases

90 units at $9 per unit

 

A) $400

B) $360

C) $890

D) $850

 

12) Given the following data, what is the gross margin if cost of goods sold is determined using the FIFO periodic method?

 

Sales revenue

200 units at $20 per unit

Beginning inventory

60 units at $12 per unit

Purchases

210 units at $13 per unit

 

A) $2,540

B) $1,460

C) $1,400

D) $1,390

13) Given the following data, what is the value of ending inventory if the FIFO periodic method is used?

 

Sales revenue

200 units at $20 per unit

Beginning inventory

60 units at $12 per unit

Purchases

210 units at $13 per unit

 

A) $1,400

B) $840

C) $910

D) $1,600

 

14) Given the following data, what is the gross margin if cost of goods sold is determined using the weighted-average method?

 

Sales revenue

200 units at $20 per unit

Beginning inventory

60 units at $12 per unit

Purchases

210 units at $13 per unit

 

A) $2,556

B) $1,444

C) $2,500

D) $1,500

Table 6-2

 

January 1 inventory balance

100 units at $10 per unit

March 2 purchase

50 units at $11 per unit

July 8 purchase

80 units at $10 per unit

November 15 purchase

30 units at $12 per unit

 

On December 31, a physical count reveals 80 units in ending inventory.

 

15) Referring to Table 6-2, the cost of ending inventory using the periodic FIFO method would be:

A) $1,910.

B) $860.

C) $800.

D) $850.

 

16) Referring to Table 6-2, cost of goods sold calculated under the periodic FIFO method would be:

A) $1,800.

B) $2,160.

C) $1,910.

D) $1,850.

 

17) Referring to Table 6-2, assuming all goods are sold throughout the year for $17 per unit, gross margin calculated under the periodic FIFO method would be:

A) $1,210.

B) $1,260.

C) $1,150.

D) $900.

18) Referring to Table 6-2, assuming all goods are sold throughout the year for $19 per unit, gross margin calculated under the periodic FIFO method would be:

A) $1,620.

B) $1,510.

C) $1,260.

D) $1,570.

 

19) Referring to Table 6-2, the cost of ending inventory using the periodic weighted-average-cost  method rounded to the nearest whole number would be:

A) $1,910.

B) $860.

C) $834.

D) $850.

 

20) Which statement addresses the consistency characteristic of accounting information?

A) Companies in the same industry must use the same inventory costing method to facilitate comparison of results.

B) Financial reporting practices in one country should be consistent with those in other countries.

C) Businesses should generally use the same accounting methods and procedures from one period to the next.

D) Once a company selects an inventory costing method, it must always use that method.