96. Holliday Company's inventory records show the following data:
UnitsUnit Cost
Inventory, January 15,000?2.25
Purchases:June 184,5002.00
November 83,0001.75
A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for ?3 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.?500
b.?2,500
c.?5,250
d.?9,500
97. Unitech has the following inventory information.
July1Beginning Inventory50 units at $19$ 950
7Purchases175 units at $203,500
22Purchases25 units at $22 550
$5,000
A physical count of merchandise inventory on July 31 reveals that there are 75 units on hand. Using the average-cost method, the value of ending inventory is
a.$1,450.
b.$1,500.
c.$1,525.
d.$1,550.
98. Unitech has the following inventory information.
July1Beginning Inventory50 units at $19$ 950
7Purchases175 units at $203,500
22Purchases25 units at $22 550
$5,000
A physical count of merchandise inventory on July 31 reveals that there are 75 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is
a.$1,450.
b.$1,550.
c.$3,450.
d.$3,550.
99. Neighborly Industries has the following inventory information.
July1Beginning Inventory30 units at $120
5Purchases180 units at $112
14Sale120 units
21Purchases90 units at $115
30Sale84 units
Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a FIFO basis?
a.$10,992
b.$11,022
c.$23,088
d.$23,118
100.Shandy Shutters has the following inventory information.
Nov.1Inventory30 units @ €6.00
8Purchase120 units @ €6.45
17Purchase60 units @ €6.30
25Purchase90 units @ €6.60
A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Assume a periodic inventory system is used. Cost of goods sold under the average-cost method is
a.€1,292.
b.€1,284.
c.€1,268.
d.€1,200.
101.Shandy Shutters has the following inventory information.
Nov.1Inventory30 units @ €6.00
8Purchase120 units @ €6.45
17Purchase60 units @ €6.30
25Purchase90 units @ €6.60
A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Assume a periodic inventory system is used. Ending inventory under FIFO is
a.€657.
b.€1,268.
c.€632.
d.€1,294.
102.Shandy Shutters has the following inventory information.
Nov.1Inventory30 units @ €6.00
8Purchase120 units @ €6.45
17Purchase60 units @ €6.30
25Purchase90 units @ €6.60
A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Assume a periodic inventory system is used. Assuming that the specific identification method is used and that ending inventory consists of 30 units from each of the three purchases and 10 units from the November 1 inventory, cost of goods sold is
a.€640.
b.€1,286.
c.€1,280.
d.€1,254.
103.Lee Industries had the following inventory transactions occur during 2014:
UnitsCost/unit
2/1/14Purchase72$45
3/14/14Purchase124$47
5/1/14Purchase88$49
The company sold 204 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using FIFO? (rounded to whole dollars)
a.$9,764
b.$9,460
c.$3,392
d.$3,088
104.Lee Industries had the following inventory transactions occur during 2014:
UnitsCost/unit
2/1/14Purchase72$45
3/14/14Purchase124$47
5/1/14Purchase88$49
The company sold 204 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s after-tax income using FIFO? (rounded to whole dollars)
a.$3,088
b.$3,392
c.$2,374
d.$2,160
105.Companies adopt different cost flow methods for each of the following reasons
except
a.statement of financial position effects.
b.cash flow effects.
c.income statements effects.
d.tax effects.