Deck 7: Inventory

Question 1

The following journal entry was included in the accounting records of Jonase, Inc. This entry is needed when Jonase records the:

A) cost of merchandise sold.
B) sales price of merchandise sold.
C) cost of merchandise returned by a customer.
D) net effect of a sales transaction.

Answer 1

cost of merchandise sold.

Question 2

What effects occur on a retail store's accounting equation when it records purchase of merchandise on account, assuming the use of a perpetual inventory system?

A) Assets and equity increase.
B) Assets and equity decrease.
C) Assets and liabilities increase.
D) No net effect.

Answer 2

C

Question 3

The following journal entry was included in the accounting records of Spica, Inc. Based on this information, it is likely that Spica:

A) purchased inventory for cash.
B) paid for inventory purchased on credit, and took advantage of a 1% purchase discount.
C) sold inventory for cash.
D) collected cash for inventory sold on credit, and recognized a 1% sales discount.

Answer 3

paid for inventory purchased on credit, and took advantage of a 1% purchase discount.

Question 4

Transportation-in is:

A) an operating expense.
B) part of purchase returns and allowances.
C) added to transportation-out as part of the calculation of cost of goods sold.
D) part of the cost of net purchases.

Question 5

Portey Company
Portey uses a perpetual inventory system and had the following inventory transactions for the month of June.


- Refer to the information provided for Portey. If Portey uses the FIFO inventory costing method, the amount of ending inventory reported on the balance sheet is:

A) $1,901.00.
B) $1,010.00.
C) $1,041.00.
D) $1,045.00.

Question 6

Portey Company
Portey uses a perpetual inventory system and had the following inventory transactions for the month of June.


- Refer to the information provided for Portey. If Portey uses the FIFO inventory costing method, cost of goods sold for the month of June is:

A) $1,932.00.
B) $1,901.00.
C) $2,942.00.
D) $1,917.00.

Question 7

Jensan Company
Jensan uses a perpetual inventory system and had the following inventory transactions for the month of June.
The June 30th inventory included 45 units from the June 4th purchase and 45 units from the June 10th purchase.

-
Refer to the information provided for Jensan Company. What is the cost of goods sold for June under the specific identification method?

A) $2,263.00
B) $2,270.00
C) $2,260.00
D) $3,626.50

Question 8

Which inventory cost flow method assigns the cost of the most recent items purchased to ending inventory?

A) Specific identification
B) Weighted average
C) FIFO
D) LIFO

Question 9

Which inventory cost flow method assigns the average unit cost to all units whether sold or left in ending inventory?

A) Specific identification
B) Weighted average
C) FIFO
D) LIFO

Question 10

Portey Company
Portey uses a perpetual inventory system and had the following inventory transactions for the month of June.


- Refer to the information provided for Portey. If Portey uses the LIFO inventory costing method, cost of goods sold for the month of June is:

A) $1,901.00.
B) $1,932.00.
C) $2,942.00.
D) $1,917.00.

Question 11

For which type of merchandise would a company most likely use the specific identification method of inventory costing?

A) Gasoline held in storage tanks
B) Cases of bottled water
C) Fine jeweler
D) Barbie dolls

Question 12

The amount of inventory expensed during the year is reported on the income statement as:

A) sales revenue.
B) cost of goods sold.
C) operating expenses.
D) administrative expenses.

Question 13

What effects on a retail store's accounting equation occur when the retail store pays a third-party carrier to transport inventory to its warehouse?

A) No net effect.
B) Assets and equity increase.
C) Assets decrease and liabilities increase.
D) Equity decreases and liabilities increase.

Question 14

The cost of goods sold is equal to:

A) purchases less beginning inventory plus ending inventory.
B) the inventory account as reported on the balance sheet.
C) the cost of goods available for sale less ending inventory.
D) the amount of inventory on hand at the end of the accounting period.

Question 15

In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is:

A) debit Cost of Merchandise Sold; credit Sales
B) debit Cost of Merchandise Sold; credit Merchandise Inventory
C) debit Merchandise Inventory; credit Cost of Merchandise Sold
D) debit Accounts Receivable; credit Sales

Question 16

Which of the following statements is false?

A) The inventory account is updated after every sale and after every merchandise purchase under the perpetual inventory system.
B) The inventory account is updated only at the end of the accounting period under the periodic inventory system.
C) A cost of goods sold account is updated after each sale of merchandise under the periodic inventory system.
D) A purchases account is used only under the periodic inventory system.

Question 17

Jensan Company
Jensan uses a perpetual inventory system and had the following inventory transactions for the month of June.
The June 30th inventory included 45 units from the June 4th purchase and 45 units from the June 10th purchase.

-
Refer to the information provided for Jensan Co. Jensan's cost of ending inventory at June 30th under the specific identification method is:

A) $1,350.00.
B) $1,359.00.
C) $1,363.50.
D) $1,366.50.

Question 18

Which inventory cost flow method assigns the cost of the most recent items purchased to cost of goods sold?

A) Specific identification
B) Weighted average
C) FIFO
D) LIFO

Question 19

Harold's Five & Dime Harold's Five & Dime is a merchandising company that uses the periodic inventory system. Selected account balances are listed below.
Calculate Harold's net purchases.

A) $ 84,000
B) $ 90,000
C) $103,000
D) $117,000

Question 20

Portey Company
Portey uses a perpetual inventory system and had the following inventory transactions for the month of June.


- Refer to the information provided for Portey. If Portey uses the LIFO inventory costing method, ending inventory at June 30th is:

A) $1,024.82
B) $1,092.00
C) $1,010.00
D) $1,041.00

Question 21

Wilsonwear Corporation
Wilsonwear uses a perpetual inventory system. The following information is available for the month of March.


- Refer to the information provided for Wilsonwear Corporation. If Wilsonwear uses the LIFO inventory costing method, how much is cost of goods sold for the month of March?

A) $510
B) $520
C) $540
D) $1,400

Question 22

Tickets4U.com
Tickets4U.com uses a perpetual inventory system with a weighted average inventory costing method. The following information is available for the month of April.


- Refer to the information provided for Tickets4U.com. Calculate the cost of ending inventory on April 30th.

A) $302
B) $312
C) $317
D) $327

Question 23

Tickets4U.com
Tickets4U.com uses a perpetual inventory system with a weighted average inventory costing method. The following information is available for the month of April.


-Refer to the information provided for Tickets4U.com. Calculate the cost of goods sold for the units sold on April 15th.

A) $245
B) $255
C) $260
D) $270

Question 24

If the amount assigned to ending inventory is incorrect, then:

A) the balance sheet is affected, but the income statement is not.
B) the income statement is affected, but the balance sheet is not.
C) the balance sheet is affected, but cost of goods sold is not.
D) both the balance sheet and income statement are affected.

Question 25

Sadler Enterprises
The following information is from Filmore's 2012 accounting records.


- Refer to the information provided for Sadler Enterprises. Using the gross profit method, estimate Sadler's cost of goods sold at year-end.

A) $111,650
B) $116,100
C) $91,350
D) $93,150

Question 26

During a period of increasing purchase prices, which inventory costing method will yield the lowest cost of goods sold?

A) Any method in which the company uses a periodic system.
B) FIFO
C) LIFO
D) Weighted average cost

Question 27

Filmore Enterprises
The following information is from Filmore's 2012 accounting records.


- Refer to the information provided for Filmore Enterprises. Using the gross profit method, estimate Filmore's cost of goods sold at year-end.

A) $109,200
B) $102,900
C) $72,800
D) $78,200

Question 28

Sadler Enterprises
The following information is from Filmore's 2012 accounting records.


-Refer to the information provided for Filmore Enterprises. Using the gross profit method, estimate Filmore's ending inventory at year end.

A) $41,600
B) $46,650
C) $46,560
D) $46,100

Question 29

Pollet Company started business at the beginning of 2012. Pollet selected the FIFO method for its inventory costing. The profits will maximize for 2012 under this method, in a period of:

A) rising prices.
B) declining prices.
C) stable prices.
D) prices fluctuating up and down at the same amount consistently throughout the year.

Question 30

Wilsonwear Corporation
Wilsonwear uses a perpetual inventory system. The following information is available for the month of March.


- Refer to the information provided for Wilsonwear Corporation. If Wilsonwear uses the FIFO inventory costing method, how much is ending inventory at March 31st?

A) $30
B) $50
C) $60
D) $150

Question 31

Filmore Enterprises
The following information is from Filmore's 2012 accounting records.
$\begin{array}{ll}\text { Sales } & \$ 182,000 \\\text { Beginning inventory } & 28,000 \\\text { Purchases } & 126,500 \\\text { Grossprofit percentage } & 40 \%\end{array}$

-Refer to the information provided for Filmore Enterprises. Using the gross profit method, estimate Filmore's ending inventory at year end.

A) $41,600
B) $53,700
C) $72,800
D) $46,100

Question 32

Wilsonwear Corporation
Wilsonwear uses a perpetual inventory system. The following information is available for the month of March.


- Refer to the information provided for Wilsonwear Corporation. If Wilsonwear uses the FIFO inventory costing method, how much is cost of goods sold for March?

A) $510
B) $520
C) $540
D) $1,400

Question 33

Which inventory costing method results in the highest inventory balance during a period of rising purchase prices?

A) Weighted average cost
B) FIFO
C) LIFO
D) Both FIFO and LIFO result in the same inventory balance.

Question 34

Portey Company
Portey uses a perpetual inventory system and had the following inventory transactions for the month of June.


- Refer to the information provided for Portey. If Portey uses the weighted average inventory costing method, ending inventory at June 30th is:

A) $1,015.00.
B) $1,010.27.
C) $1,041.00.
D) $1,024.82.

Question 35

Ronn Industries
Ronn Industries reported net income of $95,000 for 2012. Early in 2013, Ronn discovered that its 2012 ending inventory was overstated by $5,000.

-
Refer to the information provided for Ronn Industries. Determine the financial statement effects of the inventory error for 2013.

A) Expenses will be understated and net income will be overstated.
B) Expenses will be overstated and net income will be understated.
C) Both expenses and net income will be overstated.
D) Both expenses and net income will be understated.

Question 36

Which method of inventory costing is not acceptable for financial accounting purposes?

A) Specific identification
B) FIFO
C) LIFO
D) Retail cost

Question 37

Portey Company
Portey uses a perpetual inventory system and had the following inventory transactions for the month of June.


- Refer to the information provided for Portey. If Portey uses the weighted average inventory costing method, cost of goods sold for the month of June is:

A) $1,935.00.
B) $1,917.18.
C) $1,901.00.
D) $1,930.69.

Question 38

Which one of the following statements regarding changing inventory costing methods is true?

A) A change in inventory costing methods can be justified if the change is made after the completed financial period.
B) Changing inventory costing methods violates consistency.
C) One place that the reader of an annual report would be able to identify that a company changed inventory costing methods is the statement of stockholders' equity.
D) Tax advantages are valid justification for changing inventory costing methods.

Question 39

Ronn Industries
Ronn Industries reported net income of $95,000 for 2012. Early in 2013, Ronn discovered that its 2012 ending inventory was overstated by $5,000.

-
Refer to the information provided for Ronn Industries. Determine the effects of the inventory errors for 2012.

A) Assets and equity would have been overstated by $5,000 on the balance sheet; expenses and net income would have been understated by $5,000 on the income statement.
B) Assets and equity would have been overstated by $5,000 on the balance sheet; expenses would have been overstated by $5,000 on the income statement, thus net income would have been understated by $5,000.
C) Assets and equity would have been understated by $5,000 on the balance sheet; expenses would have been overstated by $5,000 on the income statement, thus net income would have been understated by $5,000.
D) Assets and equity would have been overstated by $5,000 on the balance sheet; expenses would have been understated by $5,000 on the income statement, thus net income would have been overstated by $5,000.

Question 40

If a company understates its inventory, what are the effects on cost of goods sold and net income for the current year?

A) Cost of goods sold will be understated and net income will be overstated.
B) Cost of goods sold will be overstated and net income will be understated.
C) Both cost of goods sold and net income will be understated.
D) Both cost of goods sold and net income will be overstated.

Question 41

Stephan, Inc.
Stephan, Inc. has an inventory turnover rate of 8 times.

-
Refer to the information provided for Stephan, Inc. If its cost of goods sold is $150,000, then the company:

A) will report sales of $1,200,000.
B) will report gross margin of $1,200,000.
C) will have average inventory of $18,750.
D) sells its inventory 1,200 times per year.

Question 42

Stephan, Inc.
Stephan, Inc. has an inventory turnover rate of 8 times.

-
Refer to the information provided for Stephan, Inc. Calculate the company's days-in-inventory ratio.

A) 365 days
B) 150 days
C) 120.75 days
D) 45.625 days

Question 43

Augustus, Inc. buys designer clothing to sell in its retail stores. Since much of the merchandise comes from New York and Europe, Augustus must pay freight charges to get the merchandise shipped in. Which of the following statements must be true?

A) Transportation-in, paid by Augustus, is added to the inventory account under the periodic system.
B) Transportation-in, paid by Augustus, is subtracted from purchases under the periodic system.
C) Freight charges are only paid by a buyer in a periodic system.
D) Transportation-in is included in the total cost of purchases used to determine cost of goods sold in a periodic system.

Question 44

Max's Tire Center Company
Selected data from the financial statements of Max's Tire Center are provided below.


- Refer to the selected data provided for Max's Tire Center. What is Max's inventory turnover in 2012?

A) The inventory turnover is 2.10 in 2012.
B) The inventory turnover is 2.61 in 2012.
C) The inventory turnover is 2.08 in 2012.
D) The inventory turnover is 2.38 in 2012.

Question 45

How are purchase returns and purchase discounts recorded by a company using the periodic inventory system?

A) As a reduction to the Purchases account.
B) In contra-accounts to the Purchases account.
C) As operating expenses.
D) As miscellaneous expenses.

Question 46

If the cost of an item of inventory is $50 and the market value is $57, the amount included in inventory according to the lower-of-cost-or-market is:

A) $7.
B) $50.
C) $57.
D) $107.

Question 47

Max's Tire Center Company
Selected data from the financial statements of Max's Tire Center are provided below.


-Refer to the selected data provided for Max's Tire Center. Which of the following would result from a vertical analysis of Max's income statement in 2012?

A) Cost of sales increased by 9.09% during 2012.
B) Cost of sales is $390,000 in 2012.
C) Cost of sales is 30.77% of total assets in 2012.
D) Cost of sales is 30.77% of total sales in 2012.

Question 48

When inventories are written down due to the application of the lower-of-cost-or-market (LCM) rule, which of the following is usually increased?

A) Cost of goods sold
B) Inventories
C) Operating expenses
D) Accumulated depreciation--inventory

Question 49

Inventory turnover:

A) is computed by dividing average inventory by cost of merchandise sold.
B) measures the relationship between the volume of goods sold and amount of inventory carried.
C) increases the risk of loss from damaged merchandise.
D) is computed by dividing the beginning inventory plus the ending inventory by two.

Question 50

The lower-of-cost-or-market rule applies to the write-down of inventory values when market value exceeds cost. Why does this rule not allow for write-ups in inventory value?

A) Write-ups in inventory value are more uncertain than write-downs.
B) The most prudent approach to preparing financial statements involves avoidance of pessimistic projections regarding the company's future prospects.
C) Writing up inventory to market value would be inconsistent with the conservatism principle.
D) Write-ups in inventory value are inconsistent with the matching principle.

Question 51

Which of the following statements regarding the application of the lower-of-cost-or-market method is true?

A) Generally, historical cost is lower than the market value so the lower-of-cost-or-market rule is applied.
B) When the lower-of-cost-or-market method is used, inventories are valued at their selling price.
C) The lower-of-cost-or-market method is most commonly applied on a total inventory basis because it is a more conservative approach.
D) The lower-of-cost-or-market method is an exception to the historical cost principle.

Question 52

Max's Tire Center Company
Selected data from the financial statements of Max's Tire Center are provided below.


- Refer to the selected data provided for Max's Tire Center. What is Max's days-in-inventory ratio in 2012?

A) The days-in-inventory ratio is 153.60 days in 2012.
B) The days-in-inventory ratio is 167.29 days in 2012.
C) The days-in-inventory ratio is 139.92 days in 2012.
D) The days-in-inventory ratio is 173.81 days in 2012.

Question 53

Medina Enterprises
The following selected financial information is available for Medina for the year ended December 31, 2012.


- Refer to the information provided for Medina Enterprises. Calculate Medina's days-in-inventory ratio.

A) 58.98 days
B) 60.53 days
C) 39.77 days
D) 59.76 days

Question 54

Max's Tire Center Company
Selected data from the financial statements of Max's Tire Center are provided below.


-Refer to the selected data provided for Max's Tire Center. Which of the following would result from a vertical analysis of Max's balance sheet in 2012?

A) Inventory increased by 19.57% during 2012.
B) Inventory is 14.10% of net sales in 2012..
C) Inventory is 8.20% of total assets in 2012.
D) Inventory is 11% of total assets in 2012.

Question 55

The days-in-inventory ratio:

A) measures the length of time it takes to acquire, sell, and replace the inventory.
B) is computed by dividing the cost of merchandise sold by 365.
C) measures the length of time it takes to sell the merchandise on credit and collect the account receivable.
D) is about the same for all industries.

Question 56

If the cost of an item of inventory is $60 and the market value is $50, the amount included in inventory according to the lower-of-cost-or-market is:

A) $7.
B) $50.
C) $57.
D) $60.

Question 57

Max's Tire Center Company
Selected data from the financial statements of Max's Tire Center are provided below.


- Refer to the selected data provided for Max's Tire Center. Which of the following would result from a horizontal analysis of Max's balance sheet?

A) Inventory increased by 19.57% during 2012.
B) Inventory increased by 26% during 2012.
C) Inventory is 11.0% of total assets in 2012.
D) The total assets is $500,000 in 2012.

Question 58

When the market value of inventory items has declined below their cost, which method would be the most appropriate in complying with GAAP?

A) Weighted average
B) LIFO
C) Lower-of-cost-or-market
D) FIFO

Question 59

Medina Enterprises
The following selected financial information is available for Medina for the year ended December 31, 2012.


- Refer to the information provided for Medina Enterprises. What is the inventory turnover ratio for 2012?

A) 6.188 times
B) 6.030 times
C) 6.108 times
D) 9.177 times

Question 60

Max's Tire Center Company
Selected data from the financial statements of Max's Tire Center are provided below.


- Refer to the selected data provided for Max's Tire Center. Which of the following would result from a horizontal analysis of Max's income statement?

A) Cost of sales increased by 9.09% during 2012.
B) Cost of sales increased by 11% during 2012.
C) Cost of sales is 30.76% of Net Sales in 2012.
D) Cost of sales more than double the inventory in 2012..

Question 61

Entee Corporation
Entee Corporation uses a periodic inventory system. The following information is available for the month of November.


- Refer to the information provided for Entee Corporation. If Entee uses the FIFO inventory costing method, the amount assigned to the November 30th inventory would be:

A) $1,354.00
B) $1,366.50
C) $1,368.00
D) $1,359.94

Question 62

Silvermark Enterprises
The following information is from Silvermark's 2012 accounting records.


- Refer to the information provided for Silvermark Enterprises. How much will Silvermark report as net purchases for 2012?

A) $200,000
B) $209,000
C) $218,000
D) $201,600

Question 63

Entee Corporation
Entee Corporation uses a periodic inventory system. The following information is available for the month of November.


- Refer to the information provided for Entee Corporation. If Entee uses the weighted average cost method, the amount assigned to the November 30th ending inventory would be:

A) $1,359.94
B) $1,486.50
C) $1,356.27
D) $1,362.60

Question 64

Delry Appliances
On August 1, 2012, Delry Appliances purchased 75 refrigerators for $45,000 cash and also paid $1,500 transportation costs related to this purchase. On the same date, Delry purchased 100 dishwashers for $20,000 on credit; however, the seller paid the $1,200 freight. The credit terms for the dishwashers were 2/10, n/30. On August 3rd, Delry determined that 5 of the refrigerators were defective, so they were returned to the seller. Delry paid for the dishwashers on August 9th. On August 10th, Delry purchased 90 microwave ovens for $9,000 on credit with terms 1/10, n/30. The seller paid the freight. Delry paid for the microwave ovens on August 21st. Delry uses a perpetual inventory system.
Refer to the information presented for Delry Appliances. Prepare all of Delry's journal entries for August.

Question 65

Shelton Brothers, Inc.
Shelton Brothers uses a periodic inventory system. It purchased merchandise from BXP on account Inc. on July 7, 2012, for $15,000. The credit terms were 1/10, n/30. Shelton paid the amount due on July 15.

-Refer to the information provided for Shelton Brothers, Inc. The effect of recording the payment on July 15th will include:

A) a decrease to Purchases for $15,000.
B) an increase to Inventory for $14,850.
C) a decrease to Cash for $15,000.
D) a decrease to Accounts Payable for $15,000.

Question 66

Silvermark Enterprises The following information is from Silvermark's 2012 accounting records.


-Refer to the information provided for Silvermark Enterprises. Using the cost of goods sold model, how much will Silvermark report as its cost of goods sold in its 2012 income statement?

A) $193,600
B) $198,400
C) $185,600
D) $190,400

Question 67

Billit Corporation Billit Corporation is a merchandising company. Selected account balances are listed below.
Calculate the cost of goods sold for Billit Corporation.

A) $221,000
B) $239,000
C) $241,000
D) $211,000

Question 68

If a company does not update the inventory and cost of goods sold accounts during the period, it means company is using:

A) the periodic inventory system.
B) the perpetual inventory system.
C) both the periodic and the perpetual inventory system.
D) neither the periodic nor the perpetual inventory system.

Question 69

Shirey Co.
Shirey uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January.


-Refer to the information provided for Shirey. If Shirey uses FIFO inventory costing method, how much is cost of goods sold for January?

A) $230
B) $232
C) $240
D) $250

Question 70

The following inventory transactions occurred at Erill, Inc. Erill uses a perpetual inventory system.
Record the appropriate journal entry for each of these transactions for Erill.

Question 71

Shelton Brothers, Inc.
Shelton Brothers uses a periodic inventory system. It purchased merchandise from BXP on account Inc. on July 7, 2012, for $15,000. The credit terms were 1/10, n/30. Shelton paid the amount due on July 15.

-
Refer to the information provided for Shelton Brothers, Inc. What effect does recording the purchase of merchandise on July 7, 2012, have on Shelton's accounting equation?

A) Assets and liabilities increase.
B) Liabilities increase and equity decreases.
C) Assets and equity increase.
D) Liabilities and equity decrease.

Question 72

Geoffry Hesse Exports
The following data are available for one of the products sold by Geoffry Hesse Exports, which uses a perpetual inventory system.


- Refer to the information provided for Geoffry Hesse Exports. If the FIFO method of inventory costing is used, determine the following amounts:

Question 73

Delry Appliances
On August 1, 2012, Delry Appliances purchased 75 refrigerators for $45,000 cash and also paid $1,500 transportation costs related to this purchase. On the same date, Delry purchased 100 dishwashers for $20,000 on credit; however, the seller paid the $1,200 freight. The credit terms for the dishwashers were 2/10, n/30. On August 3rd, Delry determined that 5 of the refrigerators were defective, so they were returned to the seller. Delry paid for the dishwashers on August 9th. On August 10th, Delry purchased 90 microwave ovens for $9,000 on credit with terms 1/10, n/30. The seller paid the freight. Delry paid for the microwave ovens on August 21st. Delry uses a perpetual inventory system.
Refer to the information presented for Delry Appliances. On August 12th, Delry sold 10 dishwashers to customers for $550 each. Delry paid $200 for these dishwashers when it purchased them from the supplier on August 1st.
Record the journal entries for this sale.

Question 74

Ahi Corporation purchased merchandise on account from Yudder Inc. on December 12, 2012. On December 13, 2012, Ahi returned damaged merchandise to Yudder and was granted an adjustment on its account. Ahi uses the periodic inventory system. What effect does the merchandise return have on Ahi's accounting equation?

A) Assets and equity decrease.
B) Assets and liabilities decrease.
C) Liabilities decrease and equity increases.
D) Liabilities and equity decrease.

Question 75

Entee Corporation
Entee Corporation uses a periodic inventory system. The following information is available for the month of November.


- Refer to the information provided for Entee Corporation. How many units did Entee sell during November?

A) 50
B) 90
C) 100
D) 150

Question 76

Shirey Co.
Shirey uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January.


- Refer to the information provided for Shirey. If Shirey uses the LIFO inventory costing method, how much is inventory on the balance sheet at the end of January?

A) $40
B) $50
C) $58
D) $60

Question 77

Croggins Cane Company has a beginning balance in its inventory account of $15,000 and the ending balance is $10,000. Cost of goods sold is $80,000. According to the cost of goods sold model, what was the amount of inventory purchased during the year?

A) $55,000
B) $75,000
C) $70,000
D) $65,000

Question 78

Shirey Co.
Shirey uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January.


- Refer to the information provided for Shirey. If Shirey uses the weighted average method of inventory costing, how much is cost of goods sold for January?

A) $230
B) $250
C) $240
D) $232

Question 79

Geoffry Hesse Exports
The following data are available for one of the products sold by Geoffry Hesse Exports, which uses a perpetual inventory system.


-Refer to the information provided for Geoffry Hesse Exports. If the LIFO method of inventory costing is used, determine the following amounts:
A) Cost of goods sold for the units sold on July 10 th?
B) Ending inventory on July 31 st?

Question 80

Entee Corporation
Entee Corporation uses a periodic inventory system. The following information is available for the month of November.


- Refer to the information provided for Entee Corporation. If Entee uses the LIFO inventory costing method, the cost of goods sold for November would be:

A) $1,354.00
B) $2,260.00
C) $2,272.50
D) $2,296.08