45) Jameson, Inc. had the following balances and transactions during 2019:
Beginning Merchandise Inventory as of January 1, 2019
240 units at $72
March 10
Sold 60 units
June 10
Purchased 175 units at $79
October 30
Sold 175 units
What would be reported for Cost of Goods Sold on the income statement for the year ending December
31, 2019 if the perpetual inventory system and the last-in, first-out inventory costing method are used?
A) $18,145
B) $13,825
C) $4,320
D) $16,920
46) Centennial, Inc. sold 600 units of inventory at $20 per unit on account. The company uses the
perpetual inventory system and the last-in, first-out (LIFO) inventory costing system. The beginning
inventory included 200 units at $9 per unit. The most recent purchases include 700 units at $12 per unit.
The sale occurred after the last purchase.
a. Prepare the journal entries to record the sale. Omit explanations.
b. Compute the cost of the ending inventory. Label your work.
47) Designer Furniture began June with merchandise inventory of 45 sofas that cost a total of $31,500.
During the month, Designer Furniture purchased and sold merchandise on account as follows:
June 7
Purchase
25 sofas @ $750 each
14
Sale
30 sofas @ $1,150 each
18
Purchase
50 sofas @ $775 each
27
Sale
35 sofas @ $1,200 each
Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the
company’s cost of goods sold, ending merchandise inventory, and gross profit.
| Purchases | Cost of Goods Sold | Inventory on Hand |
Quant
Unit
Cost
Quant
Unit
Cost
Total
Cost
48) When using the weighted-average inventory costing method in a perpetual inventory system, a new
weighted average cost per unit is computed at the end of each quarter.
49) Weighted average cost per unit is determined by dividing the cost of goods available for sale by the
number of units available.
50) The Organizer Store uses the weighted-average inventory costing method in a perpetual inventory
system. The unit cost of the beginning inventory for inventory item X500 was $10 per unit and the first
purchase of the period has a unit cost of $12 per unit. The weighted average cost per unit is $11. Assume
multiple units were purchased.
51) Which of the following inventory costing methods requires the calculation of a new average cost after
each purchase?
A) specific identification
B) weighted-average
C) last-in, first-out
D) first-in, first-out
52) A company purchased 400 units for $50 each on January 31. It purchased 200 units for $35 each on
February 28. It sold a total of 250 units for $50 each from March 1 through December 31. If the company
uses the weighted-average inventory costing method, calculate the cost of ending inventory on December
31. (Assume that the company uses a perpetual inventory system. Round any intermediate calculations
two decimal places, and your final answer to the nearest dollar.)
A) $27,000
B) $15,750
C) $11,250
D) $14,875
53) A company purchased 130 units for $20 each on January 31. It purchased 190 units for $25 each on
February 28. It sold 190 units for $60 each from March 1 through December 31. If the company uses the
weighted-average inventory costing method, calculate the amount of Cost of Goods Sold on the income
statement for the year ending December 31. (Assume the company uses the perpetual inventory system.
Round any intermediate calculations two decimal places, and your final answer to the nearest dollar.)
A) $7,350
B) $4,364
C) $2,600
D) $4,750
54) Ralwins, Inc. had the following balances and transactions during 2018, from January 1 to December
31:
Beginning Merchandise Inventory
200 units at $81
March 10
Sold 100 units
June 10
Purchased 400 units at $83
October 30
Sold 300 units
What would be reported for ending Merchandise Inventory on the balance sheet at December 31, 2018 if
the perpetual inventory system and the weighted-average inventory costing method are used? (Round
unit costs to two decimal places and total costs to nearest dollar.)
A) $16,520
B) $8,100
C) $16,200
D) $24,300
Date
Quant
Unit
Cost
Total
Cost
Quant
Unit
Cost
Total
Cost
Quant
Unit
Cost
Total
Cost
Jan. 1
200
$81
$16,200
Mar. 10
100
$81
$8,100
100
$81
$8,100
Jun. 10
400
$83
$33,200
500
$82.60
$41,300
Oct. 30
300
$82.60
$24,780
200
$82.60
$16,520
Totals
400
$33,200
400
$32,880
200
$16,520
Diff: 3
LO: 6-2
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Application
H2: Weighted-Average Method
55) Cougar, Inc. had the following balances and transactions during 2019:
Beginning Merchandise Inventory
150 units at $80
March 10
Sold 50 units
June 10
Purchased 300 units at $82
October 30
Sold 140 units
What would be reported as Cost of Goods Sold on the income statement for the year ending December
31, 2019 if the perpetual inventory system and the weighted-average inventory costing method are used?
(Round the unit costs to two decimal places and total costs to the nearest dollar.)
A) $21,190
B) $32,600
C) $15,410
D) $11,410
Date
Quant
Unit
Cost
Total
Cost
Quant
Unit
Cost
Total
Cost
Quant
Unit
Cost
Total
Cost
Jan. 1
150
$80
$12,000
Mar. 10
50
$80
$4,000
100
$80
$8,000
Jun. 10
300
$82
$24,600
400
$81.50
$32,600
Oct. 30
140
$81.50
$11,410
260
$81.50
$21,190
Totals
450
$36,600
190
$15,410
260
$21,190
Cost of Goods Sold = $4,000 + $11,410 = $15,410
Diff: 3
LO: 6-2
AACSB: Application of knowledge
AICPA Functional: Measurement
PE Question Type: Application
H2: Weighted-Average Method
56) Under the weighted-average method for inventory costing, the cost per unit is determined by
________.
A) dividing the cost of goods available for sale by the number of units available for sale
B) dividing the cost of goods available for sale by the number of units in beginning inventory
C) multiplying the number of units purchased with the weighted–average cost
D) multiplying the cost of goods available for sale by the ending weighted-average cost of the previous
accounting period
57) Which of the following is the correct formula to calculate weighted-average unit cost for merchandise
inventory?
A) Weighted-average unit cost = Cost of goods available for sale + Number of units available
B) Weighted-average unit cost = Cost of goods available for sale × Number of units available
C) Weighted-average unit cost = Cost of goods available for sale – Number of units available
D) Weighted-average unit cost = Cost of goods available for sale / Number of units available
58) Third Avenue Furniture began June with merchandise inventory of 45 sofas that cost a total of
$31,500. During the month, the company purchased and sold merchandise on account as follows:
June 7
Purchase
25 sofas @ $750 each
14
Sale
30 sofas @ $1,150 each
18
Purchase
50 sofas @ $775 each
27
Sale
35 sofas @ $1,200 each
Prepare a perpetual inventory record, using the weighted-average inventory costing method, and
determine the company’s cost of goods sold, ending merchandise inventory, and gross profit. (Round
weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.)
| Purchases | Cost of Goods Sold | Inventory on Hand |
Quant
Unit
Cost
Quant
Unit
Cost
Total
Cost