61. The inventory costing method that reports the earliest costs in ending inventory is A. FIFOB. LIFOC. Average costD. Specific identification
62. Which of the following companies would be more likely to use the specific identification inventory costing method? A. Gordon’s JewelersB. Lowe’sC. Best BuyD. Wal-Mart
63. Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:
Sep. 1
Inventory
20 units at $20
4
Sold
10 units
10
Purchased
30 units at $25
17
Sold
20 units
30
Purchased
10 units at $30
If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is A. $800B. $650C. $750D. $700
64. Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:
Sep. 1
Inventory
20 units at $20
4
Sold
10 units
10
Purchased
30 units at $25
17
Sold
20 units
30
Purchased
10 units at $30
If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is A. $800B. $650C. $750D. $700
65. When using a perpetual inventory system, the journal entry to record the cost of merchandise sold is: A. debit Cost of Merchandise Sold; credit SalesB. debit Cost of Merchandise Sold; credit Merchandise InventoryC. debit Merchandise Inventory; credit Cost of Merchandise SoldD. No journal entry is made to record the cost of merchandise sold.
66. Under the _________ inventory method, accounting records maintain a continuously updated inventory value. A. retailB. periodicC. physicalD. perpetual
67. The inventory data for an item for November are:
Nov. 1
Inventory
20 units at $19
4
Sold
10 units
10
Purchased
30 units at $20
17
Sold
20 units
30
Purchased
10 units at $21
Using a perpetual system, what is the cost of the merchandise sold for November if the company uses LIFO? A. $610B. $600C. $590D. $580
68. The inventory data for an item for November are:
Nov. 1
Inventory
20 units at $19
4
Sold
10 units
10
Purchased
30 units at $20
17
Sold
20 units
30
Purchased
10 units at $21
Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO? A. $610B. $600C. $590D. $580
69. Use the following information to answer the following questions.The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
Date
Product Z
Units
Cost
May 3
Purchase
5
$20
May 10
Sale
3
May 17
Purchase
10
$24
May 20
Sale
6
May 23
Sale
3
May 30
Purchase
10
$30
Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the LIFO inventory cost method. A. $136B. $144C. $180D. $120
70. Use the following information to answer the following questions.The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
Date
Product Z
Units
Cost
May 3
Purchase
5
$20
May 10
Sale
3
May 17
Purchase
10
$24
May 20
Sale
6
May 23
Sale
3
May 30
Purchase
10
$30
Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the FIFO inventory cost method. A. $120B. $180C. $136D. $144
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