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31.

Cellar Company began December with 200 units of an item that cost $40 per unit. On 12/16 it purchased 600 more units at $50 each. Then on 12/22 Cellar Company sold 700 of those units for a price of $90 per unit. Using FIFO and perpetual inventory costing, Ending Inventory would be

		a. $ 4,000
		b. $ 5,000
		c. $ 9,000
		d. $10,000

32.

Cellar Company began December with 200 units of an item that cost $40 per unit. On 12/16 it purchased 600 more units at $50 each. Then on 12/22 Cellar Company sold 700 of those units for a price of $90 per unit. Using FIFO perpetual, Cost of Goods Sold would be

		a. $ 63,000
		b. $ 34,000
		c. $ 33,000
		d. $ 28,000

34.

Cellar Company began December with 200 units of an item that cost $40 each. On 12/16 it purchased 600 more units at $50 each. Then on 12/22 Cellar Company sold 700 of those units for a price of $90 per unit. Using LIFO perpetual, Ending Inventory would be

		a. $ 3,000
		b. $ 4,000
		c. $ 5,000
		d. $ 9,000
		e. $ 8,000

35.

Cellar Company began December with 200 units of an item that cost $40 each. On 12/16 it purchased 600 more units at $50 each. Then on 12/22 Cellar Company sold 700 of those units for a price of $90 per unit. Using LIFO perpetual, Cost of Goods Sold would be

		a. $ 34,000
		b. $ 33,000
		c. $ 30,000
		d. $ 29,000

36.

Cellar Company began December with 200 units of an item that cost $40 per unit. On 12/16 it purchased 600 more units at $50 each. Then on 12/22 Cellar Company sold 700 of those units for a price of $90 per unit. Using weighted-average costing perpetual, Ending Inventory would be

		a. $ 4,750
		b. $ 4,500
		c. $ 6,000
		d. $15,500

38.

Assume that during 2019, product costs increased steadily. Under these circumstances which inventory costing procedure would result in the lowest reported gross profit for 2019?

		a. FIFO
		b. LIFO
		c. Weighted Average
		d. The same gross profit would be reported regardless of which inventory costing procedure was in use.

39.

A company began December with 300 units of an item that cost $20 per unit. On 12/16 the company sold 100 units for a price $35 per unit. The company then purchased 200 more units at $30 each. Using LIFO perpetual, the Cost of Goods Sold would be:

		a. $ 2,000
		b. $ 3,000
		c. $ 3,500

40.

A company began December with 300 units of an item that cost $20 per unit. On 12/16 the company sold 100 units for a price of $40 per unit. The company then purchased 200 more units at $30 each. Using Weighted Average Costing perpetual, the Cost of Goods Sold would be:

		a. $2, 000
		b. $ 2,400
		c. $ 2,500
		d. $ 3,000

41.

Regardless of the inventory costing system used, cost of goods available for sale must be allocated at the end of the period between

		a. beginning inventory and net purchases during the period.
		b. ending inventory and beginning inventory.
		c. net purchases during the period and ending inventory.
		d. ending inventory and cost of goods sold.
		e. beginning inventory and cost of goods sold

42.

When reconciling the cash balance per books and the cash balance per bank statement to the correct cash balance at the end of August, how would you show checks written and recorded in August by X Company totaling $300 that were not included among the paid checks listed on the August bank statement?

		a. Addition to balance per books
		b. Deduction from balance per books
		c. Addition to balance per bank statement
		d. Deduction from balance per bank statement
		e. Would not appear on the August bank reconciliation form

43.

When reconciling the cash balance per books and the cash balance per bank statement to the correct cash balance at the end of August, how would you show checks written and recorded in August by X Company totaling $6,000 that were listed among the paid checks on the August bank statement.

		a. Addition to balance per books
		b. Deduction from balance per books
		c. Addition to balance per bank statement
		d. Deduction from balance per bank statement
		e. Would not appear on the August bank reconciliation form

44.

When reconciling the cash balance per books and the cash balance per bank statement to the correct cash balance at the end of August, how would you show checks written and recorded in July by X Co. totaling $500 that were listed among the paid checks on the August bank statement?

		a. Addition to balance per books
		b. Deduction from balance per books
		c. Addition to balance per bank statement
		d. Deduction from balance per bank statement
		e. Would not appear on the August bank reconciliation form

45.

When reconciling the cash balance per books and the cash balance per bank statement to the correct cash balance, how would you show a debit memo enclosed with the bank statement that indicated that the bank properly levied service charges totaling $50 against X Companys account.

		a. Addition to balance per books
		b. Deduction from balance per books
		c. Addition to balance per bank statement
		d. Deduction from balance per bank statement
		e. Would not appear on the August bank reconciliation form

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