Reference no: EM133116868
Questions -
Q1) At May 1, 2020, Vaughn Company had beginning inventory consisting of 180 units with a unit cost of $6.20. During May, the company purchased inventory as follows:
790 units at $6.20
530 units at $8.00
The company sold 1000 units during the month for $12 per unit. Vaughn uses the average-cost method. Using three decimals for the unit cost, the value of Vaughn's inventory at May 31, 2020 is
a) $5580.
b) $3418.
c) $4580.
d) $7836.
Q2) Swifty, Inc. has 9 computers which have been part of the inventory for over two years. Each computer cost $590 and originally retailed for $900. At the statement date, each computer has a net realizable value of $430. What value should Swifty, Inc. have for the computers at the end of the year?
a) $5310.
b) $2655.
c) $3870.
d) $8100.
Q3) Concord Company's inventory records show the following data:
|
|
Units
|
Unit Cost
|
|
Inventory:
|
January 1
|
10100
|
$8.80
|
|
Purchases:
|
June 18
|
9300
|
8.00
|
|
November 8
|
6400
|
8.00
|
A physical inventory on December 31 shows 4100 units on hand. Concord sells the units for $13 each. The company has an effective tax rate of 22%. Concord uses the periodic inventory method. If the company uses FIFO, what is the gross profit for the period?
a) $106820
b) $102720
c) $100420
d) $103700
Q4) At May 1, 2020, Sheridan Company had beginning inventory consisting of 240 units with a unit cost of $5.40. During May, the company purchased inventory as follows:
740 units at $5.40
620 units at $7.00
The company sold 900 units during the month for $14 per unit. Sheridan uses the average-cost method. Using three decimals for the unit cost, the average-cost per unit for May is
a) $1600.
b) $7015.
c) $7182.
d) $6318.
Q5) The specific identification method of costing inventories is used when the
a) company sells large quantities of relatively low cost heterogeneous items.
b) company sells a limited quantity of high-unit cost items.
c) physical flow of units cannot be determined.
d) company sells large quantities of relatively low cost homogeneous items.
Q6) At May 1, 2020, Sunland Company had beginning inventory consisting of 160 units with a unit cost of $6.30. During May, the company purchased inventory as follows:
690 units at $6.30
650 units at $6.00
The company sold 1160 units during the month for $11 per unit. Sunland uses the average-cost method. The average-cost per unit for May is
a) $6.300.
b) $6.170.
c) $8.300.
d) $7.300.