84. Holliday Company's inventory records show the following data: UnitsUnit Cost Inventory, January 15,000$4.50 Purchases:June 184,5004.00 November 83,0003.50 A physical inventory on...







84. Holliday Company's inventory records show the following data:



UnitsUnit Cost



Inventory, January 15,000$4.50



Purchases:June 184,5004.00



November 83,0003.50





A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for $6 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. Under the LIFO method, cost of goods sold is



a.$5,250.



b.$9,000.



c.$42,000.



d.$44,000.







85. Holliday Company's inventory records show the following data:



UnitsUnit Cost



Inventory, January 15,000$4.50



Purchases:June 184,5004.00



November 83,0003.50





A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for $6 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. The weighted-average cost per unit is



a.$3.75.



b.$4.00.



c.$4.08.



d.$4.38.







UnitsUnit Cost



Inventory, January 15,000$4.50



Purchases:June 184,5004.00



November 83,0003.50





A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for $6 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. If the company uses FIFO, what is the gross profit for the period?



a.$1,000



b.$5,000



c.$10,500



d.$19,000







87. Holliday Company's inventory records show the following data:



UnitsUnit Cost



Inventory, January 15,000$4.50



Purchases:June 184,5004.00



November 83,0003.50





A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for $6 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. What is the difference in taxes if LIFO rather than FIFO is used?



a.$400 additional taxes



b.$1,600 tax savings



c.$2,000 tax savings



d.$2,000 additional taxes







88. Unitech has the following inventory information.



July1Beginning Inventory30 units at $19$ 570



7Purchases105 units at $202,100



22Purchases15 units at $22 330



$3,000





A physical count of merchandise inventory on July 31 reveals that there are 45 units on hand. Using the average-cost method, the value of ending inventory is



a.$870.



b.$900.



c.$915.



d.$930.







89. Unitech has the following inventory information.



July1Beginning Inventory30 units at $19$ 570



7Purchases105 units at $202,100



22Purchases15 units at $22 330



$3,000





A physical count of merchandise inventory on July 31 reveals that there are 45 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is



a.$870.



b.$930.



c.$2,070.



d.$2,130.







90. Unitech has the following inventory information.



July1Beginning Inventory30 units at $19$ 570



7Purchases105 units at $202,100



22Purchases15 units at $22 330



$3,000





A physical count of merchandise inventory on July 31 reveals that there are 45 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is



a.$870.



b.$930.



c.$2,070.



d.$2,130.







91. Neighborly Industries has the following inventory information.



July1Beginning Inventory20 units at $120



5Purchases120 units at $112



14Sale80 units



21Purchases60 units at $115



30Sale56 units





Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a LIFO basis?



a.$7,328



b.$7,348



c.$15,392



d.$15,412







92. Neighborly Industries has the following inventory information.



July1Beginning Inventory20 units at $120



5Purchases120 units at $112



14Sale80 units



21Purchases60 units at $115



30Sale56 units





Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a FIFO basis?



a.$7,328



b.$7,348



c.$15,392



d.$15,412







93. Shandy Shutters has the following inventory information.



Nov.1Inventory15 units @$6.00



8Purchase60 units @$6.45



17Purchase30 units @$6.30



25Purchase45 units @$6.60





A physical count of merchandise inventory on November 30 reveals that there are 50 units on hand. Assume a periodic inventory system is used. Cost of goods sold under the average-cost method is



a.$323.



b.$321.



c.$317.



d.$300.







May 15, 2022
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