Question 3ABC Inc. sells socks. During January 2016, its inventory records for one brand of its socks were as follows:QuantityPrice per pairTotalBeginning Inventory10 pairs$20= $200January 6 Purchase4 pairs$25= $100January 10 Sale5 pairsN/AJanuary 15 Purchase7 pairs$30= $210January 20 Sale10 pairsN/AJanuary 25 Purchase 4 pairs$30= $120See information above. Using this information, the cost of goods sold using the periodic simple average cost method isSelect one:a. $236b. $358c. $378d. $265
Question 4If ending inventory on the last day of the year is overstated by $14,000, what is the effect on Net income for the current year? Assume a tax rate of 0%.
Question 5If at the end of 2016, ending inventory is overstated, the