54) Merits, Inc.’s inventory activity in June was as follows: Beginning inventory, June 1 400 units @ $10 each Purchase on account June 12 600 units @ $11 each Sale on account June 14 700 units @ $15 each Part A: Choose the column that represents the June financial statement where the line item will appear and fill in the dollar amount using the LIFO inventory method. Income Statement Statement of Cash Flows Balance Sheet 1. Cost of goods sold 2. Inventory 3. Sales 4. Gross profit Part B: Choose the column that represents the June financial statement where the line item will appear and fill in the dollar amount using the FIFO inventory method. Income Statement Statement of Cash Flows Balance Sheet 1. Cost of goods sold 2. Inventory 3. Sales 4. Gross profit 55) FILLO, Inc.’s inventory activity in May was: Inventory, May 1 10 units @ $7 each Purchase on account, May 7 30 units @ $6 each Sale on account, May 18 12 units @ $12 each Purchase on account, May 24 15 units @ $5 each Part A: Choose the column that represents the end of May financial statement where the line item will appear and fill in the dollar amount using the LIFO perpetual method. Income Statement Statement of Cash Flows Balance Sheet 1. Cost of goods sold 2. Inventory 3. Sales 4. Gross profit Part B: Choose the column that represents the end of May statement where the line item will appear and fill in the dollar amount using the FIFO perpetual method. Income Statement Statement of Cash Flows Balance Sheet 1. Cost of goods sold 2. Inventory 3. Sales 4. Gross profit Part C: Select which method is correct by choosing LIFO, FIFO, or Same, if both methods give the same result. Which method results in the: LIFO FIFO Same 1. higher net income? 2. lower taxes? 3. lower current taxes? 4. lower Accounts receivable on the Balance Sheet? 5. higher Accounts payable on the Balance Sheet?

54) Merits, Inc.’s inventory activity in June was as follows: Beginning inventory, June 1 400 units @ $10 each Purchase on account June 12 600 units @ $11 each Sale on...

54) Merits, Inc.’s inventory activity in June was as follows:

Beginning inventory, June 1	400 units @ $10 each
Purchase on account June 12	600 units @ $11 each
Sale on account June 14	700 units @ $15 each

Part A:
Choose the column
that represents the June financial statement where the line item will appear and
fill in the dollar amount
using the
LIFO
inventory method.

	Income Statement	Statement of Cash Flows	Balance Sheet
1. Cost of goods sold
2. Inventory
3. Sales
4. Gross profit

Part B:
Choose the column
that represents the June financial statement where the line item will appear and
fill in the dollar amount
using the
FIFO
inventory method.

	Income Statement	Statement of Cash Flows	Balance Sheet
1. Cost of goods sold
2. Inventory
3. Sales
4. Gross profit

55) FILLO, Inc.’s inventory activity in May was:

Inventory, May 1	10 units @ $7 each
Purchase on account, May 7	30 units @ $6 each
Sale on account, May 18	12 units @ $12 each
Purchase on account, May 24	15 units @ $5 each

Part A:

Choose the column
that represents the end of May financial statement where the line item will appear and
fill in the dollar amount
using the
LIFO

perpetual
method.

	Income Statement	Statement of Cash Flows	Balance Sheet
1. Cost of goods sold
2. Inventory
3. Sales
4. Gross profit

Part B:

Choose the column
that represents the end of May statement where the line item will appear and
fill in the dollar amount
using the
FIFO
perpetual

method.

	Income Statement	Statement of Cash Flows	Balance Sheet
1. Cost of goods sold
2. Inventory
3. Sales
4. Gross profit

Part C:
Select which method is correct by choosing LIFO, FIFO, or Same, if both methods give the same result.

	Which method results in the:	LIFO	FIFO	Same
1.	higher net income?
2.	lower taxes?
3.	lower current taxes?
4.	lower Accounts receivable on the Balance Sheet?
5.	higher Accounts payable on the Balance Sheet?

May 15, 2022

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54) Merits, Inc.’s inventory activity in June was as follows: Beginning inventory, June 1 400 units @ $10 each Purchase on account June 12 600 units @ $11 each Sale on...

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