The following questions dealing with inventory are adapted from questions that previously appeared on Certified Management Accountant
Question:
Questions 1 through 3 are based on the following information. Thomas Engine Company is a wholesaler of marine engine parts. The activity of carburetor 2642J during the month of March is presented below.
1. If Thomas uses a first-in, first-out perpetual inventory system, the total cost of the inventory for carburetor 2642J at March 31 is
a. $196,115
b. $197,488
c. $201,300
d. $263,825
2. If Thomas uses a last-in, first-out periodic inventory system, the total cost of the inventory for carburetor 2642J at March 31 is
a. $196,115
b. $197,488
c. $201,300
d. $268,400
3. If Thomas uses a last-in, first-out perpetual inventory system, the total cost of the inventory for carburetor 2642J at March 31 is
a. $196,200
b. $197,488
c. $263,863
d. $268,400
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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