Club is a merchandising entity

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Reference no: EM13795244

1. Sam’s Club is a merchandising entity; on October 1st, they purchased goods from a company for $22,000 with terms of freight on board (FOB) shipping point, 3/10, n/EOM, Sam’s Club paid 30% of the amount due on October 5th, another 30% on October 9th, and the remaining amount on October 14th. What is the recorded value of goods in Sam’s Club Merchandise inventory account?

a.21,340

b.21,604

c.21,736

d.21,802

e.22,000

2. Starbucks uses a perpetual inventory system following LIFO. On September 1st, the company had 50 bikes in inventory, which they had purchased at $50/unit. On September 6th, they purchased 50 bikes at $80/unit. On September 9th, they sold 75 bikes at $150/unit. What should Starbucks report as COGS?

a.4,500

b.4,875

c.5,000

d.5,250

e. none of the above

Reference no: EM13795244

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