Reference no: EM132739427

Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:

Quantity                 Unit Cost           Total Cost                  Beginning

inventory (Jan. 1)     20                  $11                          $220

Purchase (Jan. 11)     12                 $17                         204

Purchase (Jan. 20)      23                  $19                       437

Total                                                55                       $861

On January 14, Beech Soda, Inc. sold 25 units of this product. The other 30 units remained in inventory at January 31.

Problem 1: Assuming that Beech Soda uses the FIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is:

Multiple Choice

Option 1: $347.
Option 2: $305.
Option 3: $531.
Option 4: $861.

Problem 2: Assuming that Beech Soda uses the LIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is:

Multiple Choice

Option 1: $347.
Option 2: $861.
Option 3: $305.
Option 4: $531.

Problem 3: Assuming that Beech Soda uses the average cost flow assumption, the cost of goods sold to be recorded at January 14 is: (Round your intermediate calculation to one decimal place and final answer to the nearest cent).

Multiple Choice

Option 1: $861.00
Option 2: $391.36
Option 3: $397.50
Option 4: $332.50

Problem 4: Assuming that Beech Soda uses the FIFO cost flow assumption, the 30 units of this product in inventory at January 31 have a total cost of:

Multiple Choice

Option 1: $461.
Option 2: $514.
Option 3: $556.
Option 4: $530.

Problem 5: Assuming that Beech Soda uses the LIFO cost flow assumption, the 30 units of this product in inventory at January 31 have a total cost of:

Multiple Choice

Option 1: $514.
Option 2: $556.
Option 3: $541.
Option 4: $530.