Question

In: Accounting

1. Smith Company had the following purchases and inventory levels during September. Use this data to...

1. Smith Company had the following purchases and inventory levels during September. Use this data to calculate the cost of goods sold expense using the FIFO method.

September 1

Beginning Inventory

15 units at $20 each

September 10

Purchase

20 units at $25 each

September 20

Purchase

25 units at $28 each

September 30

Ending Inventory

30 units

a) $825
b) $750
c) 675
d) 600

2) Refer to the data in the previous question. What is the value of the ending inventory on the Balance Sheet at September 30?

a) $825
b) 750
c) 675
d) 600

3) Refer to the data for Smith Company above. What is the value of the inventory on the September 30 balance sheet if the company uses the average cost inventory cost flow method?

a) $825
b) 750
c) 675
d) 600

4) Assume Smith Company sells its inventory for $50 per unit. If the company uses LIFO and has cost of goods sold expense of $825, what is the gross profit margin?

a) $825
b) 750
c) 675
d) 600

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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