Question: The following questions dealing with inventory are adapted from questions that previously appeared on Certified Management Accountant (CMA) examinations. The CMA designation sponsored by the

The following questions dealing with inventory are adapted from questions that previously appeared on Certified Management Accountant (CMA) examinations. The CMA designation sponsored by the Institute of Management Accountants (www.imanet.org) provides members with an objective measure of knowledge and competence in the field of management accounting. Determine the response that best completes the statements or questions.

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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1 c The company began March with 3200 units in inventory at 6430 each The March 4 purchase added 340... View full answer

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