Question

.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 11 20 units at $70 per unitPurchase on February 14 100 units at $85 per unitSale on August 21 120 units

What would be the company's ending merchandise inventory in dollars on December 31 if the company used perpetual, last in, first out (LIFO) method?

$9,900

$8,500

$8,400

$7,000

2.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 11 20 units at $70 per unitPurchase on February 14 100 units at $85 per unitSale on August 21 120 units

What would be the company's cost of goods sold in dollars on December 31 if the company used perpetual, last in, first out (LIFO) method?

$9,900

$8,500

$8,400

$7,000

3.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 1

120 units at $70 per unit

Purchase on February 14

100 units at $85 per unit

Sale on August 21

150 units

What would be the company's ending merchandise inventory in dollars on December 31 if the company used perpetual, first in, first out (FIFO) method?

$4,900

$5,950

$10,950

$12,000

4.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 1

100 units at $75 per unit

Purchase on February 14

100 units at $80 per unit

Sale on August 21

150 units

What would be the company's cost of goods sold in dollars on December 31 if the company used perpetual, first in, first out (FIFO) method?

$4,000

$3,750

$11,500

$11,750

5.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 1

120 units at $70 per unit

Purchase on February 14

100 units at $85 per unit

Sale on August 21

150 units

What would be the company's ending merchandise inventory in dollars on December 31 if the company used perpetual, weighted average (WA) costing method?

$4,900

$12,000

$11,523

$5,377

6.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 1

100 units at $75 per unit

Purchase on February 14

100 units at $80 per unit

Sale on August 21

150 units

What would be the company's cost of goods sold in dollars on December 31 if the company used perpetual, weighted average (WA) costing method?

$4,000

$3,750

$11,625

$11,750

Answer 1

1		Beginning Inventory/Purchases			Sales			Ending Inventory
		Unit	Per Unit	Total
	Jan 11	20	70	1400
	Feb 14	100	85	8500
	Aug 21				100	85	8500
					20	70	1400
	Ending Inventory			NIL
	The ending inventory as on December 31 is NIL
2	Cost of Goods sold			100*85+20*70= $ 9900
	The correct answer is $ 9900
3		Beginning Inventory/Purchases			Sales			Ending Inventory
		Unit	Per Unit	Total
	Jan 1	120	70	8400
	Feb 14	100	85	8500
	Aug 21				100	85	8500	70	70	4900
					50	70	3500
	Ending Inventory				70 units	at $ 70
	Ending Inventory			70*70		$4,900
	The correct answer is $ 4900
4		Beginning Inventory/Purchases			Sales			Ending Inventory
		Unit	Per Unit	Total
	Jan 1	100	75	7500
	Feb 14	100	80	8000
	Aug 21				100	80	8000	70	70	4900
					50	70	3500
	Cost of Goods sold			100units @80 +50units @70
				100*80+50*70
				11500
	The correct answer is $ 11,500/-
5		Beginning Inventory/Purchases			Sales			Ending Inventory
		Unit	Per Unit	Total
	Jan 1	120	70	8400
	Feb 14	100	85	8500
	Aug 21				100	85	8500	70	70	4900
					50	70	3500
	Cost of Goods sold			100units @85 +50units @70
				100*85+50*70
				12000
	The correct answer is $ 12,000/-
6		Beginning Inventory/Purchases			Sales			Ending Inventory
		Unit	Per Unit	Total
	Jan 1	100	75	7500
	Feb 14	100	80	8000
	Aug 21				150	77.5	11625	50	77.5	3875
	Weighted average cost per unit
		Total Cost/No of units
		(7500+8000)/200			$77.50	per unit
	Cost of goods sold			150 * 77.5
				$11,625/-
	The correct answer is $ 11,625/-