Question : 71. Beginning inventory, purchases and sales data for tennis rackets as : 1247168

 

 

71. Beginning inventory, purchases and sales data for tennis rackets are as follows: 

 

Apr 3

Inventory

 

12 units

@

$25

 

     11

Purchase

 

13 units

@

$27

 

     14

Sale

 

18 units

 

 

 

     21

Purchase

 

9 units

@

$30

 

     25

Sale

 

10 units

 

 

 

 

 

 

 

 

 

Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under Last-in, first-out: A. cost of merchandise sold $771; ending inventory $150B. cost of merchandise sold $120; ending inventory $621C. cost of merchandise sold $621; ending inventory $145D. cost of merchandise sold $150; ending inventory $771

 

72. The following lots of a particular commodity were available for sale during the year 

Beginning inventory

10 units at $50

First purchase

25 units at $55

Second purchase

30 units at $60

Third purchase

15 units at $65

 

 

The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year.  What is the amount of inventory at the end of the year according to the first-in, first-out method? A. $1,250B. $1,150C. $1,275D. $1,050

 

73. The following lots of a particular commodity were available for sale during the year: 

Beginning inventory

10 units at $30

First purchase

25 units at $32

Second purchase

30 units at $34

Third purchase

10 units at $35

 

 

The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the last-in, first-out method? A. $655B. $620C. $690D. $659

 

74. The following lots of a particular commodity were available for sale during the year: 

Beginning inventory

5 units at $61

First purchase

15 units at $63

Second purchase

10 units at $74

Third purchase

10 units at $77

 

 

The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year.  What is the amount of the inventory at the end of the year according to the average cost method? A. $1,380B. $1,375C. $1,510D. $1,220

 

75. Under a periodic inventory system  A. accounting records continuously disclose the amount of inventoryB. a separate account for each type of merchandise is maintained in a subsidiary ledgerC. a physical inventory is taken at the end of the periodD. merchandise inventory is debited when goods are returned to vendors

 

76. The following lots of a particular commodity were available for sale during the year: 

Beginning inventory

10 units at $55

First purchase

25 units at $65

Second purchase

30 units at $68

Third purchase

15 units at $70

 

 

The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year.  What is the amount of the inventory at the end of the year according to the lower of cost or market, using the first-in, first-out method, if the current replacement cost is $68 a unit? A. $1,200B. $1,100C. $1,360D. $1,390

 

77. During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is  A. FIFOB. LIFOC. average costD. weighted average

 

78. During times of rising prices, which of the following is not an accurate statement? A. Average costing will yield results that are between those of FIFO and LIFO.B. LIFO will result in a higher cost of goods sold than FIFO.C. FIFO will result in a higher net income than LIFO.D. LIFO will result in higher income taxes than FIFO.

 

79. If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is  A. periodicB. LIFOC. FIFOD. average

 

80. If merchandise inventory is being valued at cost and the purchase price is steadily falling, which method of costing will yield the largest net income? A. average costB. LIFOC. FIFOD. weighted average