Reference no: EM132432115

Questions -

Q1. Based on the information below and considering that this company did not pay any money to its suppliers during the year, what is the company's cost of goods sold for 2015? Assume that the only source of Accounts Payable is the purchase of inventory on credit.

	1/1/2015	12/31/2015
Inventory	$57,380	$68,540
Accounts payable	$78,000	$189,160

a. $88,840

b. The answer cannot be determined with the information provided

c. $11,160

d. $100,000

Q2. Based on the information below and considering that this company paid $100,000 in cash to its suppliers during the year, what is the company's cost of goods sold for 2015? Assume that the only source of Accounts Payable is the purchase of inventory on credit.

	1/1/2015	12/31/2015
Inventory	$122,400	$123,500
Accounts payable	$54,000	$0

a. $45,800

b. None of these

c. $1,100

d. $54,200

Q3. The following data is available for an item of JNC Inc. for the month of March:

March 1 Inventory	15 units at $10 each
15 Purchase	30 units at $18 each
31 Purchase	24 units at $15 each
Sale	30 units

Using the first-in, first-out method, what is JNC Inc.'s cost of ending inventory for March?

a. $510

b. $630

c. $360

d. $420