Question :
111. Given the following information, determine the cost of goods sold : 1256862
111. Given the following information, determine the cost of goods sold at December 31 using the LIFO perpetual inventory method.
December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.
A. $282.15
B. $332.10
C. $281.25
D. $290.70
E. $210.30
112. Given the following information, determine the cost of goods sold at December 31 using the weighted-average perpetual inventory method.
December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.
A. $282.30
B. $332.10
C. $281.25
D. $290.70
E. $210.30
113. In applying the lower of cost or market method to inventory valuation, market is defined as:
A. Historical cost
B. Current replacement cost
C. Current sales price
D. FIFO
E. LIFO
114. Generally accepted accounting principles require that the inventory of a company be reported at:
A. Market value
B. Historical cost
C. Lower of cost or market
D. Replacement cost
E. Retail value
115. The conservatism constraint:
A. Requires that when more than one equally likely estimate of amounts is expected to be received or paid in the future, then the less optimistic amount should be used.
B. Requires that a company use the same accounting methods period after period.
C. Requires that revenues and expenses be reported in the period in which they are earned or incurred.
D. Requires that all items of a material nature be included in financial statements.
E. Requires that all inventory items be reported at full cost.
116. A company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit. This company’s current inventory consists of 200 units purchased at $16 per unit. Replacement cost has now fallen to $13 per unit. Calculate the value of this company’s inventory at the lower of cost or market.
A. $2,550
B. $2,600
C. $2,700
D. $3,000
E. $3,200
117. A company has the following per unit original costs and replacement costs for its inventory:
Part A: 50 units with a cost of $5 and replacement cost of $4.50.
Part B: 75 units with a cost of $6 and replacement cost of $6.50.
Part C: 160 units with a cost of $3 and replacement cost of $2.50.
Under the lower of cost or market method, the total value of this company’s ending inventory must be reported as:
A. $1,180.00.
B. $1,075.00.
C. $1,112.50 or $1075.00, depending upon whether LCM is applied to individual items or the inventory as a whole.
D. $1,112.50.
E. $1180.00 or $1075.00, depending upon whether LCM is applied to individual items or to the inventory as a whole.
118. A company has the following per unit original costs and replacement costs for its inventory:
Part A: 10 units with a cost of $3 and replacement cost of $2.50.
Part B: 40 units with a cost of $9 and replacement cost of $9.50.
Part C: 75 units with a cost of $8 and replacement cost of $7.50.
Under the lower of cost or market method, the total value of this company’s ending inventory must be reported as:
A. $990.00.
B. $947.50.
C. $967.50 or $947.50, depending upon whether LCM is applied to individual items or the inventory as a whole.
D. $967.50.
E. $990.00 or $947.50, depending upon whether LCM is applied to individual items or to the inventory as a whole.
119. A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, they purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO periodic inventory method, what is the cost of the 12 units that were sold?
A. $120
B. $124
C. $128
D. $130
E. $140
120. Given the following information, determine the cost of goods sold for December 31 using the FIFO periodic inventory method:
December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.
A. $282.15
B. $332.10
C. $281.25
D. $297.00
E. $284.70
