Question

# here you go, It should give me an option to put in 15 dollars this time.

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Use the following data for the next 5 questions Marie Co. uses a periodic inventory system. The purchases of a particular product during 2008 are shown below: Date DescripTon Units Unit Cost ±otal Cost Jan. 1 Beginning inventory 600 \$9.00 \$5,400 May. 18 Purchase 500 \$9.50 4,750 June. 11 Purchase 700 \$10.00 7,000 Nov. 23 Purchase 200 \$10.25 2,050 Total 2,000 \$19,200 During the year, 1,050 units were sold at \$22 each. Ending inventory contains 950 units. Income tax rate is 30%. 1. Refer to the above data. Compute the cost of the ending inventory based on the LIFO method of inventory valuation. a. \$9,675 b. \$10,475 c. \$8,725 d. \$9,525 e. None of the above 2. Refer to the above data. Compute the gross margin for 2008 based on the LIFO method of inventory valuation. a. \$12,275 b. \$12,625 c. \$13,375 d. \$13,575 e. None of the above 3. Refer to the above data. Compute the cost of the ending inventory based on the FIFO method of inventory valuation. a. \$9,675 b. \$10,475 c. \$8,725 d. \$9,525 e. None of the above 4. Refer to the above data. Compute the cost of goods sold for the current year based on the FIFO method of inventory valuation. a. \$9,675 b. \$10,475 c. \$8,725 d. \$9,525 e. None of the above 5. Refer to the above data. Compute the cost of goods sold based on the average-cost method of inventory valuation. a. \$8,250 b. \$10,080 c. \$9,120 d. \$10,560 e. None of the above 6. All of the following accounts normally have debit balances except: a. Sales returns & allowances b. Dividends c. Transportation-in d. Purchases e. All of the above accounts normally have debit balances 7. Mary Pizza reports net sales of \$1,000,000, cost of goods sold of \$550,000, and net income of \$80,000. The company’s gross margin is: a. \$450,000 b. \$920,000 c. \$370,000 d. Some other amount 8. Ace Shop uses a periodic inventory system. The beginning inventory was \$20,000, purchases amounted to \$110,000, sales totaled \$215,000, and the year-end inventory was \$25,000. The cost of goods sold must have been: a. \$105,000 b. \$110,000 c. \$100,000

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