Question : 81. The following lots of a particular commodity were available for : 1239788

 

 

81. The following lots of a particular commodity were available for sale during the year: 

Beginning inventory

5 units at $61

First purchase

15 units at $63

Second purchase

10 units at $74

Third purchase

10 units at $77

 

 

The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of cost of good sold for the year according to the average cost method? A. $1,380B. $1,375C. $1,510D. $1,250

 

82. The following lots of a particular commodity were available for sale during the year: 

Beginning inventory

5 units at $61

First purchase

15 units at $63

Second purchase

10 units at $74

Third purchase

10 units at $77

 

 

The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of cost of goods sold for the year according to the FIFO method? A. $1,380B. $1,375C. $1,510D. $1,250

 

83. The following lots of a particular commodity were available for sale during the year: 

Beginning inventory

5 units at $61

First purchase

15 units at $63

Second purchase

10 units at $74

Third purchase

10 units at $77

 

 

The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of cost of goods sold for the year according to the LIFO method? A. $1,380B. $1,375C. $1,510D. $1,250

 

84. Under a periodic inventory system  A. accounting records continuously disclose the amount of inventoryB. a separate account for each type of merchandise is maintained in a subsidiary ledgerC. a physical inventory is taken at the end of the periodD. merchandise inventory is debited when goods are returned to vendors

 

85. The following lots of a particular commodity were available for sale during the year: 

Beginning inventory

10 units at $60

First purchase

25 units at $65

Second purchase

30 units at $68

Third purchase

15 units at $75

 

 

The firm uses the periodic system and there are 25 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year using the FIFO method? A. $1,685B. $1,575C. $1,805D. $3,585

 

86. The following lots of a particular commodity were available for sale during the year: 

Beginning inventory

10 units at $60

First purchase

25 units at $65

Second purchase

30 units at $68

Third purchase

15 units at $75

 

 

The firm uses the periodic system and there are 25 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year using the LIFO method? A. $1,685B. $1,575C. $1,805D. $3,815

 

87. The following lots of a particular commodity were available for sale during the year: 

Beginning inventory

10 units at $60

First purchase

25 units at $65

Second purchase

30 units at $68

Third purchase

15 units at $75

 

 

The firm uses the periodic system and there are 25 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year using the average cost method? A. $1,685B. $1,575C. $1,805D. $3,705

 

88. If Beginning Inventory (BI) + Purchases (P) – Ending Inventory (EI) = Cost of Goods Sold (COGS), an equivalent equation can be written as? A. BI + P = COGS – EIB. BI – P = COGS + EIC. BI + P = COGS + EID. EI + P = COGS – BI

 

89. During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is  A. FIFOB. LIFOC. average costD. weighted average

 

90. During times of rising prices, which of the following is not an accurate statement? A. Average costing will yield results that are between those of FIFO and LIFO.B. LIFO will result in a higher cost of goods sold than FIFO.C. FIFO will result in a higher net income than LIFO.D. LIFO will result in higher income taxes than FIFO.