Question

1.Charter Company, which uses the perpetual inventory method, purchases different letters for resale. Charter had a beginning inventory comprised of ten units at $3 per unit. The company purchased four units at $5 per unit in February, sold seven units in October, and purchased four units at $6 per unit in December. If Charter Company uses the LIFO method, what is the cost of its ending inventory?

2. Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available for sale this year: one was purchased on June 1 for $700, two were purchased on July 9 for $800 each, and two were purchased on September 23 for $850 each. On December 24, it sold one of the diamonds that was purchased on July 9. Using the specific identification method, its ending inventory (after the December 24 sale) equals:

3. Alphabet Company, which uses the periodic inventory method, purchases different letters for resale. Alphabet had no beginning inventory. It purchased A thru G in January at $8.00 per letter. In February, it purchased H thru L at $10.00 per letter. It purchased M thru R in March at $11.00 per letter. It sold A, D, E, H, J and N in October. There were no additional purchases or sales during the remainder of the year. If Alphabet Company uses the weighted average method, what is the cost of its ending inventory?

4. Sugar, Inc. sells $569,300 of goods during the year that have a cost of $448,600. Inventory was $30,283 at the beginning of the year and $34,538 at the end of the year. How long on average does it take to sell something from inventory after it is purchased?

5.King Costume uses a periodic inventory system. The company started the month with 8 masks in its beginning inventory that cost $11 each. During the month, King Costume purchased 50 additional masks for $13 each. At the end of the month, King counted its inventory and found that 4 masks remained unsold. Using the LIFO method, its cost of goods sold for the month is:

Answer 1