1. The following units of and inventory item were available for sale during the year. Use this information to answer the following question.

Beginning inventory 10 units at $55

First purchase 25 units at $60

Second purchase 30 units at $65

Third purchase 15 units at $70

The firm uses the periodic inventory system. During the year, 60 units of the item were sold.

1. The value of ending inventory using FIFO is

a. $1,350

b. $1,150

c. $1,375

d. $1,250

2. The following units of an inventory item were available for sale during the year. Use this information to answer the following question.

Beginning inventory 10 units at $55

First purchase 25 units at $60

Second purchase 30 units at $60

Third purchase 15 units at $70

The firm uses the periodic inventory system. During the year, 60 units of the item were sold.

The value of ending inventory using LIFO is

a. $1,375

b. $1,350

c. $1,150

d. $1,250

3. The following units of an inventory item were available for sale during the year. Use this information to answer the following questions.

Beginning inventory 10 units at $55

First purchase 25 units at $60

Second purchase 30 units at $65

Third purchase 15 units at $70

The firm uses the periodic inventory system. During the year, 60 units of the item were sold.

The value of ending inventory rounded to nearest dollar using average cost is:

a. $1,353

b. $1,263

c. $1,150

d. $1,375

4. The following lots of commodity Z were available for sale during the year. Use this information to answer the question.

Beginning inventory 10 units at $30

First purchase 25 units at $32

Second purchase 30 units at $34

Third purchase 10 units at $35

The firm uses the periodic system. There are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the LIFO method?

a. $655

b. $659

c. $620

d. $690

5. The following lots of a particular commodity were available for sale during the year

Beginning inventory 10 units at $47.00

First purchase 25 units at $50.00

Second purchase 30 units at $57.00

Third purchase 15 units at $60.00

The firm uses the periodic system, and there are 23 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the LIFO method?

Select the correct answer.

a. $1,120.00

b. $1,368.00

c. $5,267.00

d. $1,081.00

Answer rating: 100% (QA)

Units Price Cost 1 Beginning inventory 10 55 First Purchase 25 60 Second Purchase 30 65 Thir... View the full answer