Question :
49.Pinkston Company purchased two identical inventory items. One of the : 1254434
49.Pinkston Company purchased two identical inventory items. One of the items, purchased in January, cost $18.00. The other, purchased in February, cost $19.00. One of the items was sold in March at a selling price of $30.00. Select the correct answer assuming that Pinkston uses a LIFO cost flow.
A. The balance in ending inventory would be $19.00.
B. The amount of gross margin would be $11.00.
C. The amount of ending inventory would be $18.50.
D. The amount of cost of goods sold would be $18.00.
50.Kitchen Company uses the perpetual inventory method. On January 1, 2013, the company’s first day of operations, Kitchen purchased 400 units of inventory that cost $2.50 each. On January 10, 2013, the company purchased an additional 600 units of inventory that cost $3.00 each. If Kitchen uses a weighted average cost flow method and sells 550 units of inventory, the amount of inventory appearing on balance sheet following the sale will be approximately:
A. $1,540.
B. $1,513.
C. $1,260.
D. $1,238.
51.Signal Company uses the perpetual inventory method. On January 1, 2013, Signal purchased 400 units of inventory that cost $2.00 each. On January 10, 2013, the company purchased an additional 600 units of inventory that cost $2.25 each. If Signal uses a weighted average cost flow method and sells 700 units of inventory for $4.00 each, the amount of gross margin reported on the income statement will be:
A. $1,313.
B. $1,295.
C. $1,225.
D. $1,505.
52.Maddox Company uses the perpetual inventory method. Maddox purchased 500 units of inventory that cost $2.00 each. At a later date the company purchased an additional 600 units of inventory that cost $2.50 each. If Maddox uses a LIFO cost flow method, and sells 800 units of inventory, the amount of ending inventory appearing on the balance sheet will be:
A. $1,900.
B. $675.
C. $600.
D. $750.
53.Vincent Company uses the perpetual inventory method. Vincent purchased 400 units of inventory that cost $5.00 each. At a later date the company purchased an additional 800 units of inventory that cost $6.00 each. Vincent sold 500 units of inventory for $9.00. If Vincent uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be:
A. $1,900.
B. $2,000.
C. $1,500.
D. $2,600.
54.Which of the following businesses is most likely to use a specific identification cost flow method?
A. Hardware store
B. Grocery store
C. Car dealership
D. Roofing company
55.Torres Company purchased 2,000 units of inventory that cost $2.00 each on January 1, 2013. An additional 3,000 units of inventory were purchased on January 12, 2013 at a cost of $2.10 each. Torres Company sold 4,000 units of inventory on January 20, 2013. Which of the following entries would be required to recognize the cost of goods sold assuming that Torres Co. uses the perpetual inventory method and a FIFO cost flow method?
A. Option A
B. Option B
C. Option C
D. Option D
Chandler Co. uses the perpetual inventory method. The inventory records for Chandler reflected the following:
56.Assuming Chandler uses a LIFO cost flow method, the amount of cost of goods sold for the sales transaction on January 18 is (round the final result to the nearest whole dollar):
A. $1,150.
B. $1,070.
C. $1,050.
D. $1,130.
57.Assuming Chandler uses a FIFO cost flow method, the cost of goods sold for the sales transaction on January 31 is:
A. $1,005.
B. $1,020.
C. $1,045.
D. $340.
58.Assuming Chandler uses a FIFO cost flow method, the ending inventory on January 31 is:
A. $345.
B. $330.
C. $340.
D. $1,020.
