Reference no: EM133093211

Question 1 - Merchandise with a sales price of $500 is sold on account with terms 2/10, n/30. The journal entry to record the sale would include a

a. debit to Accounts Receivable for $470

b. debit to Cash for $500

c. credit to Sales for $490

d. debit to Sales Discounts for $10

Question 2 - The units of Manganese Plus available for sale during the year were as follows:

Mar. 1 Inventory 24 units @ $31 $744

June 16 Purchase 28 units @ $33 924

Nov. 28 Purchase 44 units @ $39 1,716

96 units $3,384

There are 13 units of the product in the physical inventory at November 30. The periodic inventory system is used. Round answers to the nearest whole dollar.

a. Determine the inventory cost by the FIFO method.

b. Determine the inventory cost by the LIFO method.

c. Determine the inventory cost by the average cost methods.

Question 3 - The following units of an inventory item were available for sale during the year:

Beginning inventory 8 units at $52

First purchase 19 units at $55

Second purchase 21 units at $57

Third purchase 15 units at $60

The firm uses the periodic inventory system. During the year, 45 units of the item were sold. The value of ending inventory using LIFO is

a. $966

b. $416

c. $1,174

d. $1,382