here is the quiz. bus_591_-_quiz_3.docx A.docx - here is...

here is the quiz.
bus_591_-_quiz_3.docx
At May 1, 2012, Heineken Company had beginning
inventory consisting of 100 units with a unit cost of $7.
During May, the company purchased inventory as follows:
200 units at $7
300 units at $8
The company sold 500 units during the month for $12 per
unit. Heineken uses the average cost method. Heineken's
gross profit for the month of May is (Points : 1)
$2,250
$3,750
$4,500
$6,000
1 of 10

Quark Inc. just began business and made the
following four inventory purchases in June:
June
1
150 units
$ 825
June
10

200 units
1,120
June
15
200 units
1,140
June
28

150 units
885
$3,970
A physical count of merchandise inventory on June
30 reveals that there are 250 units on hand. Using the FIFO
inventory method, the amount allocated to ending inventory
for June is (Points : 1)
$1,385.
$1,425.
$1,455.
$1,475.

2 of 10
Which of the following is
not
considered in computing net cost of purchases?
(Points : 1)
Purchases returns and allowances
Purchases
Freight paid on purchased goods
Freight paid on goods shipped to customers
3 of 10

Atom Company just began business and made the
following four inventory purchases in June:
June
1
150 units
$ 825
June
10

200 units
1,120
June
15
200 units
1,140
June
28