1. Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 7,200 units that cost $12 each. During the month, the company made two purchases: 3,000 units at $13 each and 12,000 units at $13.50 each. Checkers also sold 12,900 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month?

a. $167,055.

b. $173,700.

c. $161,850.

d. $167,700.

2. The following information was available from the inventory records of Rich Company for January:

Units Unit Cost Total Cost

Balance at January 1 9,000 $9.77 $87,930

Purchases:

January 6 6,000 10.30 61,800

January 26 8,100 10.71 86,751

Sales:

January 7 (7,500)

January 31 (11,100)

Balance at January 31 4,500

Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?

a. $47,270.

b. $46,067.

c. $46,170.

d. $46,620.

3. Black Corporation uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2017 was $280,000. The balance in the same account at the end of 2018 is $420,000. Blacks Cost of Goods Sold account has a balance of $2,100,000 from sales transactions recorded during the year. What amount should Black report as Cost of Goods Sold in the 2018 income statement?

a. $1,960,000.

b. $2,100,000.

c. $2,240,000.

d. $2,520,000.

4. RF Company had January 1 inventory of $300,000 when it adopted dollar-value LIFO. During the

year, purchases were $1,800,000 and sales were $3,000,000. December 31 inventory at year-end

prices was $430,080, and the price index was 112.

What is RF Companys gross profit?

a. $1,248,000.

b. $1,294,080.

c. $1,330,380.

d. $2,605,920.

5. Hay Company had January 1 inventory of $300,000 when it adopted dollar-value LIFO. During the

year, purchases were $1,800,000 and sales were $3,000,000. December 31 inventory at year-end

prices was $379,500, and the price index was 110.

What is Hay Companys ending inventory?

a. $330,000.

b. $345,000.

c. $349,500.

d. $379,500.

6. Opera Corp. uses dollar-value LIFO method of computing its inventory cost. Data for the past three years is as follows:

Year ended Inventory at Price

December 31. End-of-year Prices Index

2016 $ 650,000 1.00

2017 1,260,000 1.05

2018 1,350,250 1.10

What is the 2018 inventory balance using dollar-value LIFO?

a. $1,350,250.

b. $1,285,000.

c. $1,227,500.

d. $1,257,750.

7. Niles Co. has the following data related to an item of inventory:

Inventory, March 1 400 units @ $2.10

Purchase, March 7 1,400units @ $2.20

Purchase, March 16 280 units @ $2.25

Inventory, March 31 520 units

The value assigned to cost of goods sold if Niles uses FIFO is

a. $1,160.

b. $1,104.

c. $3,448.

d. $3,392.

8. Transactions for the month of June were:

Purchases Sales

June 1 (balance) 3,200@ $3.20 June 2 2,400 @ $5.50

3 8,800 @ 3.10 6 6,400 @ 5.50

7 4,800 @ 3.30 9 4,000 @ 5.50

15 7,200 @ 3.40 10 1,600 @ 6.00

22 2,000 @ 3.50 18 5,600 @ 6.00

25 800 @ 6.00

Assuming that perpetual inventory records are kept in dollars, the ending inventory on a FIFO basis is

a. $16,440.

b. $16,640.

c. $17,160.

d. $17,880.