1 | P a g e
ACCT 1110 Final Exam Practice – SOLUTIONS
Section A – True/False
1. False
2. False
3. False
4. True
5. True
6. True
7. True
8. True
9. False
10. True
Section B – Multiple Choice
11. D
12. C
13. C
14. D
15. C
16. D
17. A
18. B Calculation: ($95,000 × .03) – $600 = $2,250; $20,000 – $2,250 = $17,750
19. D
20. C
Section C – Problems
Question 21
(a)Calculate the gross profit if the company uses first-in, first-out (FIFO) periodic
inventory system.
Units available to sell 55
Units sold (25)
Ending inventory 30
Sales [(15 ∗ $15) + (10 ∗ $16)] = $385
Cost of goods sold:
Beginning inventory $80
Purchases [(25 ∗ $9) + (20 ∗ $11)] 445
Goods available 525
Less: ending inventory (20 ∗ $11) + (10 ∗ $9) (310)
Cost of goods sold 215
Gross margin $170
(b)Calculate the value of the ending inventory if the company uses weighted average.
Weighted average cost per unit = $ 525/55 units = $ 9.55
Ending inventory = 30 units ∗ $9.55 = $286.50
