Chapter 6 quiz - 1. Use the following information to answer...

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Unformatted text preview: 1. Use the following information to answer Questions 23-28. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. Date Product Z Units Cost May 3 Purchase 5 $30 May 10 Sale 3 May 17 Purchase 10 $34 May 20 Sale 6 May 23 Sale 3 May 30 Purchase 10 $40 Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method. A) $90 B) $180 C) $102 D) $78 Points Earned: 0.0/5.0 Correct Answer(s): D 2. The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $30 First purchase 25 units at $32 Second purchase 30 units at $34 Third purchase 10 units at $35 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the last-in, first-out method? A) $659 B) $655 C) $690 D) $620 Points Earned: 5.0/5.0 Correct Answer(s): D 3. The inventory method that assigns the most recent costs to cost of good sold is A) LIFO B) FIFO C) specific identification D) average Points Earned: 5.0/5.0 Correct Answer(s): A 4. The following lots of a particular commodity were available for sale during the year: 10 units at $55 Beginning inventory First purchase 25 units at $65 Second purchase 30 units at $68 Third purchase 15 units at $70 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year according to the lower of cost or market, using the first-in, first-out method, if the current replacement cost is $68 a unit? A) $1,100 B) $1,200 C) $1,390 D) $1,360 Points Earned: 5.0/5.0 Correct Answer(s): D 5. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May.The Boxwood Company sells blankets for $60 each....
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This note was uploaded on 02/20/2011 for the course ACCOUNTING 1102 taught by Professor Trumbo during the Winter '10 term at Gwinnett Technical College.

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Chapter 6 quiz - 1. Use the following information to answer...

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