ACCT303 – Exam1 ACCT303: Exam 1(February 19, 2020) Department of Business, Management and Accounting School of Business and Technology University of Maryland Eastern Shore Name: ________________________________ID#:_____________________________ <Instructions> 1.Print your name and student ID number in the space provided. 2.Do not use your own scratch paper. Use the margins of the exam for your calculations. 3.You must turn in the whole booklet (3 pages: 5 multiple choices and 2 problems). 4.If possible, show all your works for the answers to the problems. <**> Multiple choice: circle the best answer. (10 point: 2 point each) 1. In a period of rising prices which inventory method generally provides the greatest amount of cost of goods sold? a.FIFO. b.LIFO. c.Average cost. d.Specific identification.
2. Risers Inc. reported cost of goods sold of $180,000 and net income of $24,000 for the current year. Risers determined that inventory was understatedby $2,000 at the beginning of the year. What is the corrected amount for cost of goods sold and net income for the year?
