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# exam week 4 answers - ANSWER KEY Second Hour Exam 1 B 2 C 3...

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ANSWER KEY Second Hour Exam 1. B 2. C 3. A 4. B 5. B 6. A 7. A 8. A 9. B 10. B Problem #1 (25 points)

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Cost of ending inventory = 150 x \$15 each = \$2,250 Answer: Ending Inventory Cost: \$2,250 Answer: 3 8 0 u n i t s x \$ 1 5 e a c h = \$ 5 , 7 0 0 2 7 0 u n i t s x \$ 1 7 e a c h = 4 , 5 9 0 3 0 0 u n i t s x \$ 2 2 e a c h = 6 , 6 0 0 9 5 0 u n i t s \$ 1 6 , 8 9 0 8 0 0 u n i t s s o l d 1 5 0 u n i t s i n e n d i n g i n v e n t o r y A company made the following merchandise purchases and sales during the month of May: M a y 1 p u r c h a s e d 3 8 0 u n i t s a t \$ 1 5 e a c h M a y 5 p u r c h a s e d 2 7 0 u n i t s a t \$ 1 7 e a c h M a y 1 0 s o l d 4 0 0 u n i t s a t \$ 5 0 e a c h M a y 2 0 p u r c h a s e d 3 0 0 u n i t s a t \$ 2 2 e a c h M a y 2 5 s o l d 4 0 0 u n i t s a t \$ 5 0 e a c h There was no beginning inventory. If the company uses the LIFO periodic inventory met what would be the cost of the ending inventory? Answer: \$2,250 Goods Purchased Cost of Goods Sold Inventory Balance 380 @ \$15 = \$5700 380 @ \$15 = \$5700 270 @ \$17 = \$4590 380 @ \$15 \$10,290 270 @ \$17 270 @ \$17 = \$4590 130 @ \$15 = \$1950 \$6,540 250 @ \$15 = \$3,750 300 @ \$22 = 6600 250 @ \$15 \$10,350 300 @ \$22 300 @ \$22 = \$6,600 100 @ \$15 = \$1,500 150 @ \$15 = \$2,250
Problem #2 (25 points) Answer: PERIODIC

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