Question :
21) Refer to Table 6-1. Assume a perpetual inventory system : 1212665
21) Refer to Table 6-1. Assume a perpetual inventory system and all sales occurred prior to October 30th. Under the FIFO method, cost of goods sold on the income statement would be:
A) $375.
B) $537.
C) $162.
D) $420.
22) Which of the following inventory costing methods requires a company to keep track of the actual physical movement of individual inventory items?
A) specific-unit-cost
B) weighted-average cost
C) FIFO
D) average cost
23) Given the following data, what is the weighted-average cost of ending inventory rounded to the nearest whole dollar?
Sales revenue
100 units at $10 per unit
Beginning inventory
50 units at $8 per unit
Purchases
90 units at $9 per uni
A) $400
B) $360
C) $346
D) $864
24) When the FIFO method is used, ending inventory is assumed to consist of the:
A) oldest units.
B) most recently purchased units.
C) units with the highest per unit cost.
D) units with the lowest per unit cost.
25) When the FIFO method of inventory valuation is used, cost of goods sold is assumed to consist of the:
A) most recently purchased units.
B) most expensive units.
C) least expensive units.
D) oldest units.
26) If a company uses a perpetual inventory system, it will maintain all the following accounts except:
A) cost of goods sold.
B) inventory.
C) sales.
D) purchases.
27) The adjusting entry at year end under a perpetual inventory system to record cost of goods sold includes a:
A) debit to cost of goods sold and a credit to inventory for the ending balance of inventory.
B) debit to purchases and a credit to cost of goods sold for the beginning balance of purchases.
C) debit to cost of goods sold and a credit to inventory for the beginning balance of inventory.
D) No adjusting entry is required under a perpetual inventory system to adjust the beginning and ending balances.
Table 6-4
Assume the following data for Burnette Sales for 2014:
Beginning inventory
10 units at $7 each
March 18 purchase
15 units at $9 each
Sale
20 units at $15 each
June 10 purchase
20 units at $10 each
Sale
12 units at $15 each
October 30 purchase
12 units at $11 each
Sale
10 units at $16 each
On December 31, a physical count reveals 15 units on hand.
28) Refer to Table 6-4. Under the FIFO method (assuming a perpetual inventory system), ending inventory would be valued at:
A) $162.
B) $105.
C) $115.
D) $135.
29) Refer to Table 6-4. Assume a perpetual system. Under the moving-weighted-average-cost method, the cost of goods sold for the first sale (20 units) would be valued at:
A) $164.
B) $105.
C) $115.
D) $135.
30) Refer to Table 6-4. Assume a perpetual inventory system. Under FIFO method, the cost of goods sold for the second sale (12 units) would be calculated as:
A) $165.
B) $105.
C) $115.
D) $135.
