1. A company had inventory on November 1 of 5 units at a cost of$20 each. On Nov
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Question
1.
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. OnNovember 6 they purchased 6 units at $25 each. On November 8, 8units were sold for $55 each. Using the LIFO perpetual inventorymethod, what was the value of the inventory on November 8 after thesale?
A) $304 B) $296 C) $288 D) $280 E) $276
2.
Acme-Jones Corporation uses a weighted-average perpetualinventory system.
August 2, 10 units were purchased at $12 per unit.
August 18, 15 units were purchased at $14 per unit.
August 29, 12 units were sold.
What was 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.
3.
A company has inventory of 10 units at a cost of $10 each onJune 1. On June 3, they purchased 20 units at $12 each. 12 unitsare sold on June 5. Using the FIFO perpetual inventory method, whatis the cost of the 12 units that were sold?
A) $120. B) $124. C) $128. D) $130. E) $140.
4.
Acme-Jones Company uses a weighted-average perpetual inventorysystem.
August 2, 10 units were purchased at $12 per unit.
August 18, 15 units were purchased at $15 per unit.
August 29, 20 units were sold.
August 31, 14 units were purchased at $16 per unit.
What is the per-unit value of ending inventory on August 31?
A)
$12.00.
B)
$13.80.
C)
$15.42.
D)
$16.00.
E)
$17.74.
1.
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. OnNovember 6 they purchased 6 units at $25 each. On November 8, 8units were sold for $55 each. Using the LIFO perpetual inventorymethod, what was the value of the inventory on November 8 after thesale?
Explanation / Answer
Nov. 1 Begining inventory 5 units @ $20 each = $100 Nov. 2 Purchases 10 units @ $22 each = $220 Nov. 6 Purchases 6 units @ $25 each = $150 Nov. 8 Sales - 6 units @ $25 each = - $150 Nov. 8 Sales - 2 units @ $22 each = - $ 44 ______ $276 ====== LIFO perpetual inventory method ======================= Value of Inventory = 5 units @ $20 $100 8 units @ $22 $176 Total $276 Answer is E 2) Weighted-average perpetual inventory system ============================== August 2 Purchases 10 units @ $12 = $120 August 18, Purchases 15 units @ $14 = $210 Total 25 units $330 at $330 / 25 = $13.20 per unit August 29 Cost of Goods Sold = 12 units @ 13.20 = $158.40 C) $158.40 3) FIFO perpetual inventory method ======================= June 1 Begining inventory 10 units @ $10 each = $100 June 3 Purchases 20 units @ $12 each = $240 June 5 Sales 10 units @ $10 each = $100 2 units @ $12 each = $ 24 Cost of Goods Sold on June 5 $100 + $24 = $124 Answer is B) $124 4) Weighted-average perpetual inventory system ============================== August 2 Purchases 10 units @ $12 = $120 August 18 Purchases 15 units @ $15 = $225 ($225+$120) / 25 = $13.80 Nov. 2 Purchases 10 units @ $22 each = $220 Nov. 6 Purchases 6 units @ $25 each = $150 Nov. 8 Sales - 6 units @ $25 each = - $150 Nov. 8 Sales - 2 units @ $22 each = - $ 44 ______ $276 ====== LIFO perpetual inventory method ======================= Value of Inventory = 5 units @ $20 $100 8 units @ $22 $176 Total $276 Answer is E 2) Weighted-average perpetual inventory system ============================== August 2 Purchases 10 units @ $12 = $120 August 18, Purchases 15 units @ $14 = $210 Total 25 units $330 at $330 / 25 = $13.20 per unit August 29 Cost of Goods Sold = 12 units @ 13.20 = $158.40 C) $158.40 3) FIFO perpetual inventory method ======================= June 1 Begining inventory 10 units @ $10 each = $100 June 3 Purchases 20 units @ $12 each = $240 June 5 Sales 10 units @ $10 each = $100 2 units @ $12 each = $ 24 Cost of Goods Sold on June 5 $100 + $24 = $124 Answer is B) $124 4) Weighted-average perpetual inventory system ============================== August 2 Purchases 10 units @ $12 = $120 August 18 Purchases 15 units @ $15 = $225 ($225+$120) / 25 = $13.80 Nov. 6 Purchases 6 units @ $25 each = $150 Nov. 8 Sales - 6 units @ $25 each = - $150 Nov. 8 Sales - 2 units @ $22 each = - $ 44 Nov. 8 Sales - 6 units @ $25 each = - $150 Nov. 8 Sales - 2 units @ $22 each = - $ 44 Nov. 8 Sales - 2 units @ $22 each = - $ 44 ______ $276 ====== LIFO perpetual inventory method ======================= Value of Inventory = 5 units @ $20 $100 8 units @ $22 $176 Total $276 Answer is E 2) Weighted-average perpetual inventory system ============================== August 2 Purchases 10 units @ $12 = $120 August 18, Purchases 15 units @ $14 = $210 Total 25 units $330 at $330 / 25 = $13.20 per unit August 29 Cost of Goods Sold = 12 units @ 13.20 = $158.40 C) $158.40 3) FIFO perpetual inventory method ======================= June 1 Begining inventory 10 units @ $10 each = $100 June 3 Purchases 20 units @ $12 each = $240 June 5 Sales 10 units @ $10 each = $100 2 units @ $12 each = $ 24 Cost of Goods Sold on June 5 $100 + $24 = $124 Answer is B) $124 4) Weighted-average perpetual inventory system ============================== August 2 Purchases 10 units @ $12 = $120 August 18 Purchases 15 units @ $15 = $225 ($225+$120) / 25 = $13.80 3) FIFO perpetual inventory method ======================= June 1 Begining inventory 10 units @ $10 each = $100 June 1 Begining inventory 10 units @ $10 each = $100 June 3 Purchases 20 units @ $12 each = $240 June 5 Sales 10 units @ $10 each = $100 2 units @ $12 each = $ 24 Cost of Goods Sold on June 5 $100 + $24 = $124 Answer is B) $124 4) Weighted-average perpetual inventory system ============================== August 2 Purchases 10 units @ $12 = $120 August 18 Purchases 15 units @ $15 = $225 ($225+$120) / 25 = $13.80 4) Weighted-average perpetual inventory system ============================== August 2 Purchases 10 units @ $12 = $120 August 18 Purchases 15 units @ $15 = $225 ($225+$120) / 25 = $13.80Related Questions
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