Sample Midterm Exam Questions - Problem 1 The following...

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International Accounting Sample Midterm Exam Questions Problem 1 The following inventory activity occurred during the first quarter for Richfield Steel, Inc.: Jan 1 On hand, 2,000 units @ $25 each Feb 23 Purchased 8,000 units @ $35 each Feb 28 Sold 6,200 units @ $55 each Mar 22 Purchased 7,000 units @ $45 each Mar 30 Sold 3,200 units @ $55 each Richland makes all inventory calculations at the end of each quarter, not after each acquisition and sale (i.e., it uses a periodic inventory system) A. Calculate cost of goods sold for the quarter using the LIFO method. (Show your work.) B. Suppose management had decided to defer the March 22 purchase until April 1. How would that affect your answer to part A, above?
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International Accounting Sample Midterm Exam Questions Problem 2 Prime Video reported the following transactions in its financial records: 1. On January 1, incurred $198,000 costs on a research project and filed for a patent. The patent filing costs totaled $16,000. The estimated period the patent is expected to provide future benefits to Prime Video is 5 years.
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