1. Beginning inventory, purchases and sales data for tennis rackets are as follows: Grid 8 Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under Last-in, first-out: (Points: 2) cost of merchandise sold $771; ending inventory $150 cost of merchandise sold $120; ending inventory $621 cost of merchandise sold $621; ending inventory $145 cost of merchandise sold $150; ending inventory $771 2. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. Grid 5 Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method. (Points: 2) $78 $90 $102 $180 3. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. Grid 4 Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the FIFO inventory cost method. (Points: 2) $264 $502 $400 $790 4. Of the three widely used inventory costing methods (FIFO, LIFO, and average), the LIFO method of costing inventory is based on: (Points: 2) the assumption that costs are charged against revenues in the reverse order in which they were incurred. the assumption that costs are charged against expenses in the reverse order in which they were incurred. the assumption that costs are charged against revenues in the same order in which they were incurred. the assumption that costs are charged against expenses in the same order in which they were incurred. 5. The inventory data for an item for September are: Grid 1 Using the perpetual system, costing by the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on September 30? (Points: 2) $800 $650 $750 $700 6. Inventory costing methods place primary emphasis on assumptions about (Points: 2) flow of goods flow of costs flow of goods or costs depending on the method flow of values 7. The inventory method that assigns the most recent costs to cost of goods sold is (Points: 2) FIFO LIFO average specific identification 8. The inventory method that considers the inventory to be composed of the units of merchandise acquired earliest is called (Points: 2) first-in, first-out last-in, first-out average cost retail method 9. Taking a physical count of inventory (Points: 2) is not necessary when a periodic inventory system is used is a detective control has no internal control relevance is not necessary when a perpetual inventory system is used 10. Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the (Points: 2) customer's ledger creditor's ledger inventory ledger merchandise inventory account