TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1) A perpetual inventory system always provides current information about inventory levels. 1) _______

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

2) Destiny Industries reports beginning inventory of $256,000 purchases of $560,000, and ending inventory of $200,000. What is the cost of goods sold? 2) _______

A) $504,000 B) $616,000 C) $1,016,000 D) $816,000 3) Sampe Company has the following data available:

Transaction Units Purchased Unit Cost Units Sold

Beginning Inventory 400 $10

March 1 Purchase 200 $13

April 25 Sale 350

June 10 Purchase 300 $14

July 20 Sale 250

October 30 Purchase 350 $17

December 15 Sale 400

If Sampe Company uses a perpetual FIFO inventory system, the cost of goods sold for the year is ________. 3)

_______

A) $10,000 B) $13,550 C) $12,500 D) $12,350 4) Jones Company has the following data available:

Transaction Units Purchased Unit Cost Units Sold

Beginning Inventory 850 $30

Oct. 1 Purchase 325 32

Oct. 10 Sale 425

Oct. 14 Purchase 450 36

Oct. 20 Sale 600

Oct. 22 Purchase 400 37

Oct. 29 Sale 500

If Jones Company uses a perpetual LIFO inventory system, the cost of ending inventory on October 31 is ________. 4) _______

A) $18,500 B) $66,900 C) $14,800 D) $15,000 5) The inventory allocation method that assigns the most recent costs to ending inventory and the oldest costs to cost of

goods sold is the ________. 5) _______

A) moving-average method B) specific identification method C) LIFO method D) FIFO method

1

6) Excalibur Company uses the perpetual inventory method. Excalibur Company has the following data available for the month of January:

What is the Cost of Goods Sold for the month of January using LIFO? 6)

Date Transaction Units Unit Cost

Jan. 1 Beginning inventory 200 $1.00

Jan. 9 Purchase 300 $1.10

Jan. 10 Sale 400

Jan. 15 Purchase 400 $1.16

Jan. 18 Sale 300

What is the Cost of Goods Sold for the month of January using LIFO? 6) _______

A) $778 B) $810 C) $766 D) $762