kingmilk
2 years ago
10
71. Beginning inventory, purchases and sales data for tennis rackets are as follows:
Feb 3
Inventory
12 units
@
$15
11
Purchase
13 units
@
$17
14
Sale
18 units
21
Purchase
9 units
@
$20
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 491; ending inventory 90B. cost of merchandise sold 120; ending inventory 461C. cost of merchandise sold 461; ending inventory 120D. cost of merchandise sold 90; ending inventory 491
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 $53
Second purchase
30 units at $54
Third purchase
15 units at $60
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. $1,030B. $1,140C. $1,170D. $1,060
73. The following lots of a particular commodity were available for sale during the year:
Beginning inventory
10 units at $60
First purchase
25 units at $63
Second purchase
30 units at $64
Third purchase
10 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 inventory at the end of the year according to the last-in, first-out method? A. $1,230B. $1,220C. $1,240D. $1,340
74. The following lots of a particular commodity were available for sale during the year:
Beginning inventory
10 units at $61
First purchase
25 units at $63
Second purchase
30 units at $64
Third purchase
15 units at $73
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. $1,300B. $1,305C. $1,415D. $1,236
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 $60
First purchase
25 units at $63
Second purchase
30 units at $64
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 $64 a unit? A. $1,200B. $1,230C. $1,280D. $1,370
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 lifoB. Lifo will result in a higher cost of merchandise sold than FifoC. Fifo will result in a higher net income than LifoD. Lifo will result in high income taxes than Lifo
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
