Reference no: EM132218553

Questions -

Q1. Flite Company had beginning inventory on May 1 of $12,000. During the month, the company made purchases of $38,000 but returned $2,000 of goods because they were defective. At the end of the month, the inventory on hand was valued at $16,500.

Calculate cost of goods available for sale and cost of goods sold for the month.

Q2. Swifty Bookstore had 450 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows:

Date	Purchases	Sales
Jan. 14		350 @ $14
Jan. 17	260 @ $12
Jan. 25	260 @ $11
Jan. 29		220 @ $17

Swifty does not maintain perpetual inventory records. According to a physical count, 400 units were on hand at January 31.

The cost of the inventory at January 31, under the LIFO method is:

$4400.

$3600.

$5240.

$3200.