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Four Inventory questions_27 May




Question;1. Effie Company uses a periodic inventory system. Details;for the inventory account for the month of January, 2014 are as follows;Units Per unit price Total;Balance, 1/1/14 200;$5.00 $1,000;Purchase, 1/15/14 100 5.30 530;Purchase, 1/28/14 100 5.50 550;An end of the month (1/31/14) inventory showed;that 160 units were on hand. If the company uses FIFO and sells the units for;$10 each, what is the gross profit for the month?;A. $1,188;B. $1,120;C. $1,532;D. $1,600;2. Netta Shutters has the following inventory;information.;July 1 Inventory 30 units @ $8.00;8;Purchase 120 units @ $8.30;17;Purchase 60 units @ $8.40;25;Purchase 90 units @ $8.80;A physical count of merchandise inventory on;November 30 reveals that there are 90 units on hand. Assume a periodic;inventory system is used. Ending inventory under FIFO is;A. $792.;B. $1,794.;C. $1,740.;D. $738.;3. A company just starting business made the;following four inventory purchases in June;June 1 150;units $ 390;June 10 200;units 585;June 15 200;units 630;June 28 150;units 510;$2,115;A physical count of merchandise inventory on;June 30 reveals that there are 250 units on hand. Using the FIFO inventory;method, the amount allocated to cost of goods sold for June is;A. $1,290.;B. $825.;C. $1,432.;D. $683.;4. Romanoff Industries had;the following inventory transactions occur during 2014;Units;Cost/unit;2/1/14;Purchase;54;$45;3/14/14;Purchase;93;$47;5/1/14;Purchase;66;$49;The company sold 150 units at $70 each and has a;tax rate of 30%. Assuming that a periodic inventory system is used, what is the;company?s gross profit using LIFO? (rounded to whole dollars);$6,948;$3,552;$3,318;$7,182


Paper#37463 | Written in 18-Jul-2015

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