ACC 291T Wk 2 – Apply: Connect Homework (2021.7 New)

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO.

Date Activities Units Acquired at Cost   Units Sold at Retail

May 1     Beginning Inventory      340 units @ $19

5     Purchase  315 units @ $21

10    Sales            235 units @ $29

15    Purchase  195 units @ $22

24    Sales            185 units @ $30

________________________________________

Multiple Choice

$17,365

$8,140

$8,900

$8,360

$9,225

Hull Company reported the following income statement information for the current year:

Sales       $     411,000

Cost of goods sold:

Beginning inventory      $     133,500

Cost of goods purchased      274,000

Cost of goods available for sale          407,500

Ending inventory        145,000

Cost of goods sold       262,500

Gross profit    $     148,500

________________________________________

The beginning inventory balance is correct. However, the ending inventory figure was overstated by $21,000. Given this information, the correct gross profit would be:

Multiple Choice

$112,500.

$127,500.

$169,500.

$140,500.

$148,500.

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to ending inventory using LIFO.

Date Activities Units Acquired at Cost   Units Sold at Retail

May 1     Beginning Inventory      330 units @ $18

5     Purchase  310 units @ $20

10    Sales            230 units @ $28

15    Purchase  190 units @ $21

24    Sales            180 units @ $29

________________________________________

Multiple Choice

$12,060

$9,140

$5,908

$7,740

$5,510

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available:

Beginning inventory, January 1: $5,100

Net sales: $51,000

Net purchases: $52,000

The company’s gross margin ratio is 15%. Using the gross profit method, the cost of goods sold would be:

Multiple Choice

$27,050.

$6,100.

$32,150.

$43,350.

$5,100.

Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales:

August 2 27 units were purchased at $8 per unit.

August 18       32 units were purchased at $10 per unit.

August 29       29 units were sold.

What is the amount of the cost of goods sold for this sale? (Round average cost per unit to 2 decimal places.)

Multiple Choice

$263.32

$320.00

$536.00

$236.00

$238.50

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to cost of goods sold using FIFO.

Date Activities Units Acquired at Cost   Units Sold at Retail

May 1     Beginning Inventory      260 units @ $11

5     Purchase  275 units @ $13

10    Sales            195 units @ $21

15    Purchase  155 units @ $14

24    Sales            145 units @ $22

________________________________________

Multiple Choice

$4,705

$3,900

$4,040

$4,565

$4,340

A company’s inventory records report the following:

August 1 Beginning balance  18 units @ $8

August 5 Purchase  13 units @ $7

August 12       Purchase  17 units @ $8

On August 15, it sold 36 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale?

Multiple Choice

$288

$116

$576

$96

$372

Jefferson Company has sales of $304,000 and cost of goods available for sale of $270,400. If the gross profit ratio is typically 30%, the estimated cost of the ending inventory under the gross profit method would be:

Multiple Choice

$57,600

$115,200

$179,200

$91,200

$33,600

A company has beginning inventory of 36 units at a cost of $13.00 each on October 1. On October 5, it purchases 24 units at $14.00 per unit. On October 12 it purchases 34 units at $15.00 per unit. On October 15, it sells 72 units. Using the FIFO periodic inventory method, what is the value of the inventory at October 15 after the sale?

Multiple Choice

$360.00

$286.00

$616.00

$330.00

$690.00

Grays Company has inventory of 26 units at a cost of $7 each on August 1. On August 3, it purchased 36 units at $12 each. 28 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 28 units that were sold?

Multiple Choice

$206.

$250.

$212.

$728.

$210.