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.
