1. Eneri Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $9.20 Purchases: June 18 4,500 8.00 November 8 3,000 7.00 A physical inventory...

80.2K

Verified Solution

Question

Accounting

1.
Eneri Company's inventory records show the following data:
Units
Unit Cost
Inventory, January 1
5,000
$9.20
Purchases:
June 18
4,500
8.00
November 8
3,000
7.00

A physical inventory on December 31 shows 2,000 units on hand.Eneri sells the units for $13 each. The company has an effectivetax rate of 20%. Eneri uses the periodic inventory method.
Under the FIFO method, the December 31 inventory is valued at
A.
$16,133.
B.
$14,000.
C.
$16,480.
D.
$18,400.
2.
Priscilla has the following inventory information.
July
1
Beginning Inventory
20 units at $19
$ 380
7
Purchases
70 units at $20
1,400
22
Purchases
10 units at $23
230
$2,010

A physical count of merchandise inventory on July 31 reveals thatthere are 30 units on hand. Using the FIFO inventory method, theamount allocated to cost of goods sold for July is
A.
$1,380.
B.
$1,390.
C.
$1,407.
D.
$1,430.
3.
At May 1, 2013, Kibbee Company had beginning inventoryconsisting of 100 units with a unit cost of $7. During May, thecompany purchased inventory as follows:
400 units at $7
300 units at $8
The company sold 500 units during the month for $12 per unit.Kibbee uses the average cost method. The average cost per unit forMay is
A.
$7.500.
B.
$7.000.
C.
$7.375.
D.
$8.000.

Answer & Explanation Solved by verified expert

3.6 Ratings (380 Votes)

Solution Answer 1 Given data Date Particulars Units Unit cost Jan 1 Inventory 5000 920 June 18 Purchases 4500 800 Nov 08 Purchases 3000 700 The periodic inventory method Under the FIFO method A See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member