Question : 41) The following data was extracted from the records of : 1230183

 

41) 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

 

What is the gross profit using the FIFO method?

A) $6,950

B) $7,150

C) $8,600

D) $8,800

 

42) The following data was collected from the accounting records of Ambrose, Inc., for the month of June. 200 units were sold during the month. Ambrose currently uses the FIFO method of valuing inventory.

 

Beginning inventory

60 units at $12 per unit

Purchases

180 units at $15 per unit

 

What would have been the difference in Ambrose’s ending inventory under the LIFO costing method?

A) Ending inventory would have been $120 higher.

B) Ending inventory would have been $120 lower.

C) Ending inventory is the same under both methods.

D) The difference cannot be determined using this information.

43) Given the following data, calculate the cost of ending inventory using the FIFO costing method.

 

Date

Item

Unit

1/1

Beginning inventory

30 units at $10 per unit

2/25

Purchase of inventory

15 units at $12 per unit

5/20

Purchase of inventory

25 units at $13 per unit

8/15

Purchase of inventory

20 units at $14 per unit

10/17

Purchase of inventory

25 units at $15 per unit

12/31

Ending inventory

65 units

 

A) $545

B) $720

C) $740

D) $915

 

44) Given the following data, calculate the cost of ending inventory using the LIFO costing method.

 

 

Date

Item

Unit

1/1

Beginning inventory

48 units at $20 per unit

3/18

Purchase of inventory

26 units at $22 per unit

6/20

Purchase of inventory

15 units at $23 per unit

9/27

Purchase of inventory

28 units at $24 per unit

11/27

Purchase of inventory

25 units at $25 per unit

12/31

Ending inventory

97 units

 

A) $1,940

B) $2,069

C) $2,274

D) $2,425

45) Given the following data, by how much would taxable income change if LIFO is used rather than FIFO?

 

Beginning inventory

3,500 units at $60

Purchases

6,500 units at $70

Units sold

8,100

 

A) Decrease by $15,000

B) Decrease by $19,000

C) Increase by $15,000

D) Increase by $19,000

46) Given the following data, by how much would taxable income change if FIFO is used rather than LIFO?

 

Beginning inventory

3,000 units at $60

Purchases

7,000 units at $70

Units sold

8,000 units

 

A) Decrease by $20,000

B) Decrease by $19,000

C) Increase by $20,000

D) Increase by $19,000

 

47) Given the following data, what would the income tax amount be if the company uses FIFO?

 

Beginning inventory

400 units at $16

Purchases

1,600 units at $19

Operating expenses

$10,000

Tax rate

40%

Units sold

1,200 units at $45

 

A) $6,800

B) $8,960

C) $10,200

D) $13,440

 

48) Given the following data, what would the net income after taxes be if the company uses LIFO?

 

Beginning inventory

400 units at $16

Purchases

1,600 units at $19

Units sold

1,200 units at $45

Operating expenses

$10,000

Tax rate

40%

 

A) $6,800

B) $8,960

C) $12,720

D) $13,440

 

 

49) The following data was obtained from the records of Bitter Inc., for the current year:

 

01/01Beginning inventory110 units at $10

02/15Purchase200 units at $12

04/22Purchase125 units at $13

07/19Purchase 90 units at $14

12/31Ending inventory 75 units

 

Required:

1. Calculate the value of the ending inventory using:

a.FIFO.

b.LIFO.

c.Average-cost.

 

2.Calculate the Cost of goods sold by:

a.FIFO.

b.LIFO.

c.Average-cost.