66.When using a perpetual inventory system, the journal entry to record the cost of merchandise sold is:
a.debit Cost of Merchandise Sold; credit Sales
b.debit Cost of Merchandise Sold; credit Merchandise Inventory
c.debit Merchandise Inventory; credit Cost of Merchandise Sold
d.No journal entry is made to record the cost of merchandise sold.
67.Under the inventory method, accounting records maintain a continuously updated inventory value.
a.retail
b.periodic
c.physical
d.perpetual
68.The inventory data for an item for November are:
Nov. 1
|
Inventory
|
20 units at $19
|
4
|
Sold
|
10 units
|
10
|
Purchased
|
30 units at $20
|
17
|
Sold
|
20 units
|
30
|
Purchased
|
10 units at $21
|
|
|
|
Using a perpetual system, what is the cost of the merchandise sold for November if the company uses LIFO?
a. $610
b. $600
c. $590
d. $580
69.The inventory data for an item for November are:
Nov. 1
|
Inventory
|
20 units at $19
|
4
|
Sold
|
10 units
|
10
|
Purchased
|
30 units at $20
|
17
|
Sold
|
20 units
|
30
|
Purchased
|
10 units at $21
|
|
|
|
Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO?a. $610
b. $600
c. $590
d. $580
Use the information below to answer the following questions.
The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records duringMay. The company had no beginning inventory on May 1.
Date
|
Blankets
|
Units
|
Cost
|
May 3
|
Purchase
|
5
|
$20
|
10
|
Sale
|
3
|
|
17
|
Purchase
|
10
|
$24
|
20
|
Sale
|
6
|
|
23
|
Sale
|
3
|
|
30
|
Purchase
|
10
|
$30
|
70.Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for thesale of May 20 using the LIFO inventory cost method.
a. $136
b. $144
c. $180
d. $120
71.Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for thesale of May 20 using the FIFO inventory cost method.
a. $120
b. $180
c. $136
d. $144
72.Assuming that the company uses the perpetual inventory system, determine the ending inventory value for themonth of May using the FIFO inventory cost method.
a. $364
b. $372
c. $324
d. $320
73.Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23using the FIFO inventory cost method.
a. $108
b. $120
c. $72
d. $180
74.Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month ofMay using the LIFO inventory cost method.
a. $324
b. $372
c. $320
d. $364
75.Assuming that the company uses the perpetual inventory system, determine the Gross Profit for the month of Mayusing the LIFO cost method.
a. $348
b. $452
c. $444
d. $356
The following units of an inventory item were available for sale during the year:
Beginning inventory10 units at $55
First purchase25 units at $60
Second purchase30 units at $65
Third purchase15 units at $70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.