Reference no: EM133065759

Questions -

Q1. Waterway Industries sells one product and uses a perpetual inventory system. The beginning inventory consisted of 84 units that cost $20 per unit. During the current month, the company purchased 479 units at $20 each. Sales during the month totaled 357 units for $43 each. What is the cost of goods sold using the LIFO method?

A. $7140

B. $9580

C. $1680

D. $15351

Q2. Vaughn uses the periodic inventory system. For the current month, the beginning inventory consisted of 7400 units that cost $13.00 each. During the month, the company made two purchases: 3000 units at $14.00 each and 11800 units at $14.50 each. Vaughn also sold 13100 units during the month. Using the FIFO method, what is the ending inventory?

A. $120000

B. $118300

C. $131950

D. $126766

Q3. What is the effect of a $51500 overstatement of last year's inventory on current years ending retained earning balance?

A. No effect

B. Overstated by $51500

C. Need more information to determine

D. Understated by $51500

Q4. Marigold Inc. took a physical inventory at the end of the year and determined that $832000 of goods were on hand. In addition, the following items were not included in the physical count. Marigold, Inc. determined that $96500 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count). The company sold $38000 worth of inventory f.o.b. destination that did not reach the destination yet. What amount should Marigold report as inventory at the end of the year?

A. $966500

B. $832000

C. $870000

D. $928500

Q5. Sunland Company had January 1 inventory of $299000 when it adopted dollar-value LIFO. During the year, purchases were $1750000 and sales were $3090000. December 31 inventory at year-end prices was $421800, and the price index was 111. What is Sunland Company's gross profit?

A. $1198000

B. $1429910

C. $2701090

D. $1462800