Question :
Learning Objective 5-4
1) Philipsburg Corporation sells hats to upscale retailers : 1253247
Learning Objective 5-4
1) Philipsburg Corporation sells hats to upscale retailers around the world. Information about inventory is contained in the table below. The company uses a LIFO perpetual inventory system.
Date
Number of Units
Unit Cost
Total Cost
January 1
Beginning inventory
500
$9.00
$4,500
January 13
Purchase
1,000
$10.00
$10,000
January 22
Purchase
1,400
$11.00
$15,400
Determine the gross profit for the period assuming that the only sale was 1,200 units for $35 each on January 15.
A) $30,200
B) $32,400
C) $36,540
D) $42,000
2) Head on Straight, Inc. sells hats to fine retailers across the world. It uses a FIFO perpetual inventory system. Inventory data is presented in the table below.
Date
Number of Units
Unit Cost
Total Cost
January 1
Beginning inventory
300
$100
$30,000
January 13
Purchase
400
$110
$44,000
January 22
Purchase
500
$120
$60,000
Determine the operating income for the period, assuming that 1,000 units were sold for $170 each. Operating expenses excluding cost of goods sold totaled $40,000.
A) $110,000
B) $16,000
C) $65,000
D) $20,000
3) Up Against the Wall, Inc. sells wallpaper to fine retailers across the world. It uses a LIFO perpetual inventory system. Inventory data is presented in the table below.
Date
Number of Units
Amount per unit
January 1
Beginning inventory
300
$100
January 13
Purchase
600
$110
January 22
Sale
500
$200
Determine the gross profit for the period.
A) $55,000
B) $45,000
C) $100,000
D) $48,000
4) Philipsburg Corporation sells mugs to fine retailers around the world. It uses a FIFO perpetual inventory system. Inventory data is presented in the table below.
Date
Number of Units
Unit Cost
Total Cost
January 1
Beginning inventory
300
$100
$30,000
January 13
Purchase
400
$110
$44,000
January 22
Purchase
500
$120
$60,000
Determine gross profit for the period, assuming that 1,000 units were sold for $170 each. Operating expenses excluding cost of goods sold totaled $40,000.
A) $80,000
B) $60,000
C) $40,000
D) $170,000
5) Philipsburg Corporation sells mugs to fine retailers around the world. It uses a FIFO perpetual inventory system. Inventory data is presented in the table below.
Date
Number of Units
Unit Cost
Total Cost
January 1
Beginning inventory
300
$100
$30,000
January 13
Purchase
400
$110
$44,000
January 22
Purchase
500
$120
$60,000
Determine operating income for the period, assuming that 1,000 units were sold for $170 each. Operating expenses excluding cost of goods sold totaled $40,000.
A) $40,000
B) $34,000
C) $22,000
D) $20,000
6) Putting on the Ritz, Inc. sells hats to upscale retailers around the world. Information about inventory is contained in the table below. The company uses a LIFO perpetual inventory system.
Date
Number of Units
Unit Cost
Total Cost
January 1
Beginning inventory
500
$9.00
$4,500
January 13
Purchase
1,000
$10.00
$10,000
January 22
Purchase
1,400
$11.00
$15,400
Determine the gross profit for the period assuming that the only sale was 1,200 units for $35 each on January 15.
A) $30,200
B) $32,400
C) $36,540
D) $42,000
7) Inventory information for Great Falls Merchandising, Inc. is provided below. Sales for the period were 2,800 units at $8 each. The company uses a FIFO periodic inventory system.
Date
Number of Units
Unit Cost
Total Cost
January 1
Beginning inventory
1,000
$3.00
$3,000
January
Purchase
600
$3.50
$2,100
February
Purchase
800
$4.00
$3,200
March
Purchase
1,200
$4.25
$5,100
Totals
3,600
$13,400
Determine the gross profit for the quarter ended March 31.
A) $15,400
B) $12,600
C) $12,400
D) $22,400
8) Inventory data for Missoula Merchandising, Inc. are provided below. Sales for the period were 2,800 units. Each sold for $8. The company maintains a weighted-average periodic inventory system.
Date
Number of Units
Unit Cost
Total Cost
January 1
Beginning inventory
1,000
$2.20
$2,200
January
Purchases
600
$3.50
$2,100
February
Purchases
800
$4.00
$3,200
March
Purchases
1,200
$4.25
$5,100
Totals
3,600
$12,600
Determine the gross profit for the quarter ended March 31.
A) $12,635
B) $12,600
C) $13,000
D) $22,400
9) Over the Top, Inc. sells hats to upscale retailers around the world. Information about inventory is contained in the table below. The company uses a FIFO perpetual inventory system.
Date
Number of Units
Unit Cost/Price
January 1
Beginning inventory
500
$9.00
January 13
Purchase
1,000
$10.00
January 22
Sale
1,200
$35.00
Determine the gross profit.
A) $42,000
B) $34,750
C) $30,500
D) $30,2500
