60.1K

Verified Solution

Link Copied!

1) A company had the following purchases during its first year of operations:

	Purchases
January:	26 units at $113
February:	36 units at $124
May:	31 units at $136
September:	28 units at $144
November:	26 units at $154

On December 31, there were 48 units remaining in ending inventory. These 48 units consisted of 8 from January, 9 from February, 13 from May, 7 from September, and 11 from November. Using the specific identification method, what is the cost of the ending inventory?

A)6644 B)6336 C)5374 D)5338 E)6490

3) Bedrock Company reported a December 31 ending inventory balance of $414,500. The following additional information is also available:

The ending inventory balance of $414,500 included $73,700 of consigned inventory for which Bedrock was the consignor.The ending inventory balance of $414,500 included $25,400 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.

Based on this information, the correct balance for ending inventory on December 31 is:

A) 340,100 B) 303,000 C) 389,100 D) 359,400 E)241,000

4) 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	310 units @ $16
5	Purchase	300 units @ $18
10	Sales		220 units @ $26
15	Purchase	180 units @ $19
24	Sales		170 units @ $27
A)5174 B) 4860 C) 10,100 D) 7880 E) 6580 5) A companys normal selling price for its product is $22 per unit. However, due to market competition, the selling price has fallen to $17 per unit. This company's current inventory consists of 180 units purchased at $18 per unit. Replacement cost has fallen to $15 per unit. Calculate the value of this company's inventory at the lower of cost or market. A)$2,650. B)$3,060. C)$2,700. D)$3,240 E)$2,800.

Answer & Explanation Solved by verified expert

See Answer