Quiz 5 Fall 2010 - B. Ending inventory will be lower than...

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Quiz 5 – ACC 311 NAME____________________ 5 points each 1. Sam Corporation provides the following information about their inventory (laptops): Date Transaction Number of Units Cost per Unit 1/1 Beginning Inventory 10 $ 8.00 5/5 Purchase 20 $ 9.00 8/10 Purchase 30 $10.00 10/15 Purchase 20 $11.00 During the year, 40 laptop computers were sold. What was their ending inventory and cost of goods sold on 12/31 under the FIFO cost flow assumption (in dollars NOT units)? ENDING INVENTORY__$_________________ $ 420 COGS _$______________________ $360 2. Under the FIFO cost flow assumption during a period of rising prices, which of the following is false ? A. Gross margin will be higher than under LIFO.
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Unformatted text preview: B. Ending inventory will be lower than under LIFO. C. Cost of goods sold will be lower than under LIFO. 3. An overstatement of the ending inventory in Year 1, if not corrected, will cause (5 points) A. Year 1 net income to be understated B. Year 1 net income to be overstated 4: Complete the 4 missing data below: (5 points each) Sales Revenue Beg. Inventory Pur-chases Total Avail-able Ending Inventory Cost of Goods Sold Gross Profit Expenses Pretax Income or (Loss) $ 1,000 __200_ $900 $1,100 __600_ __500_ $500 ___550__ (50 ) 1 8 80 2 9 18 1 1 10 36 2 1 20 2 1 1 22 42...
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