Question :
21) Inventory information for Missoula Merchandising, Inc. provided below. Sales : 1253239
21) Inventory information for Missoula Merchandising, Inc. is provided below. Sales for the period were 2,800 units for $8 each. The company uses 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
Purchase
600
$3.50
$2,100
February
Purchase
800
$4.00
$3,200
March
Purchase
1,200
$4.25
$5,100
Totals
3,600
$12,600
Determine the ending inventory at March 31.
A) $2,300
B) $3,300
C) $9,800
D) $2,800
22) A company would choose to use LIFO so that it can ________.
A) report inventory that best reflects current costs on its balance sheet
B) report lower cost of goods sold and higher income
C) pay less income tax
D) pay less for its purchases of inventory
23) On June 1, beginning inventory consists of ten items that cost $100 each. On June 8, ten more items are purchased at $120 each. On June 12, fifteen items are sold for $200 each. On June 28, ten items are purchased at $130 each. Using perpetual FIFO, cost of goods sold for the month ended June 30 equals ________.
A) $1,500
B) $1,600
C) $1,800
D) $3,000
24) On June 1, beginning inventory consists of ten items that cost $100 each. On June 8, ten more items are purchased at $120 each. On June 12, fifteen items are sold for $200 each. On June 28, ten items are purchased at $130 each. Using periodic FIFO, cost of goods sold for the month ended June 30 equals ________.
A) $1,500
B) $1,600
C) $1,800
D) $3,000
25) On June 1, beginning inventory consists of ten items that cost $100 each. On June 8, ten more items are purchased at $120 each. On June 12, fifteen items are sold for $200 each. On June 28, ten items are purchased at $130 each. Using periodic LIFO, cost of goods sold for the month ended June 30 equals ________.
A) $1,600
B) $1,800
C) $1,900
D) $1,950
26) On June 1, beginning inventory consists of ten items that cost $100 each. On June 8, ten more items are purchased at $120 each. On June 12, fifteen items are sold for $200 each. On June 28, ten items are purchased at $130 each. Using perpetual LIFO, cost of goods sold for the month ended June 30 equals ________.
A) $1,700
B) $1,800
C) $1,900
D) $1,950
27) Mighty Ducks, Inc.’s inventory activity in October 2011 was as follows:
Inventory, October 1
11 units @ $8 each
Purchase, October 12
22 units @ $11 each
Sale, October 25
23 units @ $24 each
Which of the following shows the correct effect on the accounting equation of the October 25 sale on account using the perpetual FIFO method of accounting for inventory?
A)
Assets
Liabilities
Shareholders’ equity
(220) Inventory
552 Accounts payable
552 Sales
(220) Cost of goods sold
B)
Assets
Liabilities
Shareholders’ equity
552 Accounts receivable
(250) Inventory
No effect
552 Sales
(250) Cost of goods sold
C)
Assets
Liabilities
Shareholders’ equity
552 Accounts receivable
(220) Inventory
No effect
552 Sales
(220) Cost of goods sold
D)
Assets
Liabilities
Shareholders’ equity
(230) Inventory
552 Accounts payable
552 Sales
(230) Cost of goods sold
28) Mighty Ducks, Inc.’s inventory activity in October 2011 was as follows:
Inventory, October 1
11 units @ $8 each
Purchase, October 12
22 units @ $11 each
Sale, October 25
23 units @ $24 each
Which of the following shows the correct effect on the accounting equation of the October 25 sale on account using the perpetual WEIGHTED AVERAGE COST method of accounting for inventory?
A)
Assets
Liabilities
Shareholders’ equity
(230) Inventory
552 Accounts payable
552 Sales
(230) Cost of goods sold
B)
Assets
Liabilities
Shareholders’ equity
552 Accounts receivable
(250) Inventory
No effect
552 Sales
(250) Cost of goods sold
C)
Assets
Liabilities
Shareholders’ equity
552 Accounts receivable
(230) Inventory
No effect
552 Sales
(230) Cost of goods sold
D)
Assets
Liabilities
Shareholders’ equity
(230) Inventory
552 Accounts payable
552 Sales
(230) Cost of goods sold
29) IFRS require publicly-traded corporations to use ________.
A) the periodic inventory system
B) the perpetual inventory system
C) either the periodic or perpetual inventory system
D) the last-in, first-out system
30) A company that uses the first-in, first-out method of valuing cost of goods sold must sell its older inventory before selling any of its newer inventory, even though some of the newer items may be more accessible.
