15) Assuming that costs are changing during the accounting period, under the last-in, first-out inventory
costing method, the amount of cost of goods sold calculated using the perpetual inventory system will
usually differ from the amount calculated using the periodic inventory system.
16) When using the LIFO inventory costing method and the periodic inventory method, the ending
inventory comes from the newest costs of the period.
17) Roadside, Inc. had the following balances and transactions during 2018:
Beginning Merchandise Inventory
40 units at $70
March 10
Sold 38 units
June 10
Purchased 80 units at $80
October 30
Sold 74 units
What is the amount of the company’s ending Merchandise Inventory, as disclosed in the December 31,
2018 balance sheet, using the periodic LIFO inventory costing method?
A) $480
B) $560
C) $640
D) $420
18) Which of the following amounts could differ if a company, using the LIFO inventory costing method,
shifts from a periodic inventory system to a perpetual inventory system?
A) ending merchandise inventory
B) sales revenue
C) purchases
D) purchase returns
19) The periodic inventory records of Northstar Sales indicate the following for the month of April:
Apr. 1
Beginning merchandise inventory
15 units @ $32 each
7
Purchase
7 units @ $34 each
18
Purchase
12 units @ $37 each
26
Purchase
10 units @ $40 each
As of April 30, Northstar counts 8 units of merchandise inventory on hand.
Compute ending merchandise inventory and cost of goods sold for Northstar using the LIFO inventory
method.
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21) When using the weighted-average inventory costing method, the dollar amounts for ending inventory
and cost of goods sold are the same for both the perpetual and periodic inventory costing methods.
22) Jacob, Inc. had the following balances and transactions during 2019:
Beginning Merchandise Inventory
11 units at $92
March 10
Sold 8 units
June 10
Purchased 33 units at $89
October 30
Sold 27 units
What is the amount of the company‘s ending Merchandise Inventory, as disclosed in the December 31,
2019 balance sheet, using the periodic weighted-average inventory costing method? (Round the unit costs
to two decimal places and total costs to the nearest dollar.)
A) $109
B) $89
C) $326
D) $808
23) A company uses the weighted-average method of inventory valuation under a periodic inventory
system. The company began the year with a zero inventory balance. They had the following transactions
during the year.
1. Purchased 65 units at $7 per unit
2. Purchased 130 units at $7 per unit
3. Sold 110 units at $11 per unit
4. Purchased 55 units at $8 per unit
5. Sold 110 units at $13.25 per unit
At the end of the year, the company counted the inventory and found 30 units remaining. Calculate the
cost of goods sold for the year. (Round the unit costs to two decimal places and total costs to the nearest
dollar.)
A) $7
B) $217
C) $1,805
D) $1,588
24) When using the periodic inventory system and weighted-average inventory costing method, when is
the weighted average cost per unit computed?
25) The periodic inventory records of Canine Veterinary Supply indicate the following for the month of
April:
Apr. 1
Beginning merchandise inventory
15 units @ $32 each
7
Purchase
7 units @ $34 each
18
Purchase
12 units @ $37 each
26
Purchase
10 units @ $40 each
As of April 30, Canine counts 8 units of merchandise inventory on hand.
Compute ending merchandise inventory and cost of goods sold for Canine using the weighted-average
inventory method. (Round the per unit cost to two decimal places.)
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