Chapter 7 Take Home Review - CHAPTER 7 REVIEW QUESTIONS THE...

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C HAPTER 7 – R EVIEW Q UESTIONS T HE INVENTORY DATA FOR AN ITEM FOR S EPTEMBER ARE : S EP . 1 I NVENTORY 20 UNITS AT $20 4 S OLD 10 UNITS 10 P URCHASED 30 UNITS AT $25 17 S OLD 20 UNITS 30 P URCHASED 10 UNITS AT $30 1. U SING THE PERPETUAL SYSTEM , COSTING BY THE FIRST - IN , FIRST - OUT METHOD , WHAT IS THE COST OF THE MERCHANDISE INVENTORY OF 30 UNITS ON S EPTEMBER 30? A . $800 B . $650 C . $750 D . $700 2. U SING THE PERPETUAL SYSTEM , COSTING BY THE LAST - IN , FIRST - OUT METHOD , WHAT IS THE COST OF THE MERCHANDISE INVENTORY OF 30 UNITS ON S EPTEMBER 30? A . $800 B . $650 C . $750 D . $700 3. I N RECORDING THE COST OF MERCHANDISE SOLD FOR CASH , BASED ON DATA AVAILABLE FROM PERPETUAL INVENTORY RECORDS , THE JOURNAL ENTRY IS A . DEBIT C OST OF M ERCHANDISE S OLD ; CREDIT S ALES B . DEBIT C OST OF M ERCHANDISE S OLD ; CREDIT M ERCHANDISE I NVENTORY C . DEBIT M ERCHANDISE I NVENTORY ; CREDIT C OST OF M ERCHANDISE S OLD D . DEBIT A CCOUNTS R ECEIVABLE ; CREDIT S ALES 4. D URING A PERIOD OF CONSISTENTLY RISING PRICES , THE METHOD OF INVENTORY THAT WILL RESULT IN REPORTING THE GREATEST COST
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