Name: ACCT 350 EXAM #4-CHAPTERS 8 AND 9 Use the following summary of inventory a

Question

Name: ACCT 350 EXAM #4-CHAPTERS 8 AND 9 Use the following summary of inventory activity to answer questions 1 through 4 Beginning inventory 300 units @$5 Sale 15" purchase Sale 2nd purchase 100 units 600 units @$6 300 units 100 units @ $7 $1,500 $3,600 $700 1. Using the periodic inventory system, ending inventory using FIFO is a. $2,100 b. $3,100 c. $3,300 d. $3,500 e $3,700 2. Using the periodic inventory system, ending inventory using LIFO is a. $2,100 b. $3,100 c. $3,300 d. $3,500 e. $3,700 Using the perpetual inventory system, ending inventory using FIFO is a. $2,100 b. $3,100 c. $3,300 d $3,500 e. $3,700 3. Using the perpetual inventory system, ending inventory using LIFO is a· $2,100 b. $3,100 c. $3,300 d $3,500 e. $3,700 4.

Explanation / Answer

Q1. Answer is e. $3700 Explanation STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance Oct1 300 5 1500 300 5 1500 Purchasse First 600 6 3600 100 6 600 500 6 3000 Second 100 7 700 100 7 700 TOTAL 1000 5800 400 2100 600 3700 Q2. Answer is c. $3300 Explanation STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance Oct1 300 5 1500 300 5 1500 Purchasse First 600 6 3600 300 6 1800 300 6 1800 Second 100 7 700 100 700 TOTAL 1000 5800 400 2500 600 3300 Q3. Answer is e. $ 3700 Explanation: STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. 300 5 1500 Next 100 5 500 200 5 1000 First Purch 600 6 3600 200 5 1000 600 6 3600 Sale 200 5 1000 100 6 600 500 6 3000 Second purch. 100 7 700 500 6 3000 100 7 700 TOTAL 1000 4300 400 2100 600 3700 Q4. Answer is d. $3500 Explanation STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. 300 5 1500 Next 100 5 500 200 5 1000 First Purch 600 6 3600 200 5 1000 600 6 3600 Sale 300 6 1800 200 5 1000 300 6 1800 Second purch. 100 7 700 200 5 1000 300 6 1800 100 7 700 TOTAL 1000 4300 400 2300 600 3500

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