At year end the perpetual inventory records of

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5.At year-end, the perpetual inventory records of Anderson Co. indicate 60 units of a particular product in inventory, acquired at the following dates and unit costs:Purchased in August: 30 units at $750 per unit.Purchased in November: 30 units at $700 per unit.A complete physical inventory taken at year-end indicates only 50 units of this product actually are on hand. Refer to the information above. Assuming that Anderson uses the LIFO cost flow assumption, it should record this inventory shrinkage by: (5 pts) Circle the correct answer. A. Debiting Cost of Goods Sold $7,000.B. Crediting Cost of Goods Sold $7,500.C. Debiting Cost of Goods Sold $7,500.D. Crediting Cost of Goods Sold $7,000.10 × $700 = $7,000
6.Green Leaf Company had the following information available on December 31: (no question 7) Management applies the LCM rule on the basis of inventory category and includes wheelbarrows and hoses in the large implement category and shovels and gloves in the small implement category. What is the write-down required? (5 pts)
SOLUTIONS - BUSS 201 QUIZ 2 SUMMER 2015 NAME _________SOLUTIONS___________________________ 5 DIGIT ______________________

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