103. Assuming that perpetual inventory records are kept in units only, the ending inventory on a LIFO basis is a. $4,110. b. $4,160. c. $4,290. d. $4,470. 104. Assuming that perpetual inventory records are kept in dollars, the ending inventory on a LIFO basis is

Valuation of Inventories: A Cost-Basis Approach 8 - 23 105. Assuming that perpetual inventory records are kept in dollars, the ending inventory on a FIFO basis is 106. Assuming that perpetual inventory records are kept in units only, the ending inventory on an average-cost basis, rounded to the nearest dollar, is 107. Milford Company had 500 units of “Tank” in its inventory at a cost of $4 each. It purchased, for $2,800, 300 more units of “Tank”. Milford then sold 400 units at a selling price of $10 each, resulting in a gross profit of $1,600. The cost flow assumption used by Johnson a. is FIFO. b. is LIFO. c. is weighted average. d. cannot be determined from the information given. 108. Nichols Company had 500 units of “Dink” in its inventory at a cost of $5 each. It purchased, for $2,400, 300 more units of “Dink”. Nichols then sold 600 units at a selling price of $10 each, resulting in a gross profit of $2,100. The cost flow assumption used by Kingman 109. June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 10 units that cost $20 per unit. During the current month, the company purchased 60 units at $20 each. Sales during the month totaled 45 units for $43 each. What is the number of units in the ending inventory? 110. June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 10 units that cost $20 per unit. During the current month, the company purchased 60 units at $20 each. Sales during the month totaled 45 units for $43 each. What is the cost of goods sold using the LIFO method?

8 - 24111. Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $12 each. During the month, the company made two purchases: 500 units at $13 each and 2,000 units at $13.50 each. Checkers also sold 2,150 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month? a. $27,843. b. $28,950. c. $26,975. d. $27,950.

#### You've reached the end of your free preview.

Want to read all 51 pages?

- Fall '16
- Phuoc Le
- Financial Accounting, Thirteenth Edition