100.A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, 8 units...







100.A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, 8 units were sold for $55 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?






A.$304





B.$296





C.$288





D.$280





E.$276



Units available = 5 + 10 + 6 = 21 units
Units in inventory = 21 - 8 units = 13 units
Cost of inventory = (5 * $20) + (8 * $22) = $276









101.Marquis Company uses a weighted-average perpetual inventory system.



August 210 units were purchased at $12 per unit.



August 1815 units were purchased at $14 per unit.



August 2912 units were sold.





What is the amount of the cost of goods sold for this sale?






A.$148.00





B.$150.50





C.$158.40





D.$210.00





E.$330.00



Average cost = [(10 * $12) + (15 * $14)]/25 units = $13.20/unit
Cost of sale = 12 units * $13.20/unit = $158.40









102.Grays Company has inventory of 10 units at a cost of $10 each on August 1. On August 3, it purchased 20 units at $12 each. 12 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported in cost of goods sold for the 12 units that were sold?






A.$120.





B.$124.





C.$128.





D.$130.





E.$140.



(10 units * $10) + (2 * $12) = $124









103.McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4. Using the FIFO perpetual inventory method, what amount will be reported in cost of goods sold for the 11 units that were sold?






A.$2,239.





B.$2,255.





C.$2,200.





D.$2,228.





E.$2,215.



(8 units * $200) + (3 * $205) = $2,215









104.McCarthy Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4. Using the FIFO perpetual inventory method, what is the value of inventory after the October 4 sale?






A.$3,485.





B.$3,445.





C.$3,500.





D.$3,472.





E.$3,461.



Units in inventory = 8 + 20 - 11 = 17
17 units * $205 = $3,485









105.Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4. Using the LIFO perpetual inventory method, what amount will be reported in cost of goods sold for the 11 units that were sold?






A.$2,239.





B.$2,255.





C.$2,200.





D.$2,228.





E.$2,215.



11 * $205 = $2,255









106.Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4. Using the LIFO perpetual inventory method, what is the value of inventory after the October 4 sale?






A.$3,485.





B.$3,445.





C.$3,500.





D.$3,472.





E.$3,461.



Units in inventory = 8 + 20 - 11 = 17
(8 units * $200) * (9 units * $205) = $3,445









107.A company’s inventory records report the following:



August 1Beginning balance15 units @ $12



August 5Purchase10 units @ $13



August 12Purchase20 units @ $14





On August 15, it sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale?






A.$140





B.$160





C.$210





D.$380





E.$590



Units available for sale = 15 + 10 + 20 = 45 units

Units in inventory = 45 - 30 = 15 units

Cost of inventory = 15 * $14 each = $210









108.A company's inventory records report the following in November of the current year:



BeginningNovember 15 units @ $20



PurchaseNovember 210 units @ $22



PurchaseNovember 66 units @ $25





On November 8, it sold 18 units for $54 each. Using the LIFO perpetual inventory method, what was the amount recorded in the cost of goods sold account for the 18 units sold?






A.$395





B.$410





C.$450





D.$510





E.$520



(6 × $25) + (10 × $22) + (2 × $20) = $410









109.A company's inventory records report the following in November of the current year:



BeginningNovember 15 units @ $20



PurchaseNovember 210 @ $22



PurchaseNovember 66 @ $25





On November 8, it sold 18 units for $54 each. Using the LIFO perpetual inventory method, what amount of gross profit was earned from the 18 units sold?






A.$577





B.$452





C.$522





D.$462





E.$562



Sales = 18 * $54 = $972
Cost of goods sold = (6 × $25) + (10 × $22) + (2 × $20) = $410
Gross profit = $972 - $410 = $562









May 15, 2022
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