93)
Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average
inventory of $1.9 million. Its days’ sales in inventory equals:
A) 104. B) 60. C) 35. D) 180. E) 120.
94)
Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of
the following except:
A)
LIFO method.
B)
Retail method.
C)
Specific identification method.
D)
Weighted average method.
E)
FIFO method.
95)
Decisions management must make in accounting for inventory cost include all of the following
except:
A)
Perpetual or periodic inventory system.
B)
Customer demand for inventory.
C)
Items included in inventory and their costs.
D)
Use of market values or other estimates.
E)
Costing method.
96)
The inventory valuation method that identifies each item in ending inventory with a specific
purchase and invoice is the:
A)
Weighted average inventory method.
B)
Retail inventory method.
C)
Last-in, first-out method.
D)
First-in, first-out method.
E)
Specific identification method.
97)
A company had the following purchases during its first year of operations:
Purchases
January:
10 units at $120
February:
20 units at $130
May:
15 units at $140
September:
12 units at $150
November:
10 units at $160
On December 31, there were 26 units remaining in ending inventory. These 26 units consisted of 2
from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the
specific identification method, what is the cost of the ending inventory?
A) $3,640. B) $3,280. C) $3,960. D) $3,800. E) $3,500.
2
@
$120
4
@
$130
6
@
$140
@
$160
26 units
2
@
$120
4
@
$130
6
@
$140
4
@
$150
@
$160
26 units
2
@
$120
4
@
$130
6
@
$140
4
@
$150
@
$160
26 units
98)
A company had the following purchases and sales during its first year of operations:
Purchases
Sales
January:
10 units at $120
6 units
February:
20 units at $125
5 units
May:
15 units at $130
9 units
September:
12 units at $135
8 units
November:
10 units at $140
13 units
On December 31, there were 26 units remaining in ending inventory. Using the Perpetual FIFO
inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made
on the last day of the month.)
A) $3,405. B) $3,200. C) $3,270. D) $3,540. E) $3,365.
2
@
$120
4
@
$130
6
@
$140
4
@
$150
@
$160
26 units
2
@
$120
4
@
$130
6
@
$140
4
@
$150
@
$160
26 units
99)
A company had the following purchases and sales during its first year of operations:
Purchases
Sales
January:
10 units at $120
6 units
February:
20 units at $125
5 units
May:
15 units at $130
9 units
September:
12 units at $135
8 units
November:
10 units at $140
13 units
On December 31, there were 26 units remaining in ending inventory. Using the Periodic FIFO
inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made
on the last day of the month.)
A) $3,405. B) $3,270. C) $3,200. D) $3,445. E) $3,540.
4
@
$130
@
$135
@
$140
4
@
$130
@
$135
@
$140
26 units
4
@
$130
@
$135
@
$140
26 units
4
@
$130
@
$135
@
$140
26 units
100)
A company had the following purchases and sales during its first year of operations:
Purchases
Sales
January:
10 units at $120
6 units
February:
20 units at $125
5 units
May:
15 units at $130
9 units
September:
12 units at $135
8 units
November:
10 units at $140
13 units
On December 31, there were 26 units remaining in ending inventory. Using the Perpetual LIFO
inventory valuation method, what is the cost of the ending inventory? (Assume all sales were made
on the last day of the month.)
A) $3,200. B) $3,405. C) $5,400. D) $3,364. E) $3,270.
4
@
$120
=
@
$125
=
6
@
$130
=
1
@
$135
=
0
@
$140
=
26 units
4
@
$130
@
$135
@
$140
26 units
101)
A company had the following purchases and sales during its first year of operations:
Purchases
Sales
January:
10 units at $120
6 units
February:
20 units at $125
5 units
May:
15 units at $130
9 units
September:
12 units at $135
8 units
November:
10 units at $140
13 units
On December 31, there were 26 units remaining in ending inventory. Using the Periodic LIFO inventory
valuation method, what is the cost of the ending inventory? (Assume all sales were made on the last
day of the month.)
A) $3,364. B) $3,405. C) $3,200. D) $5,400. E) $3,270.
@
$120
@
$125
26 units
@
$120
@
$125
26 units
@
$120
@
$125
26 units
@
$120
@
$125
26 units
102)
A company had the following purchases and sales during its first year of operations:
Purchases
Sales
January:
10 units at $120
6 units
February:
20 units at $125
5 units
May:
15 units at $130
9 units
September:
12 units at $135
8 units
November:
10 units at $140
13 units
On December 31, there were 26 units remaining in ending inventory. Using the Perpetual FIFO
inventory valuation method, what is the value of cost of goods sold? (Assume all sales were made
on the last day of the month.)
A) $5,400. B) $3,540. C) $5,130. D) $8,670. E) $3,270.
@
$120
@
$130
41 units
@
$120
@
$125
@
$130
41 units
@
$120
@
$125
26 units
103)
A company had the following purchases and sales during its first year of operations:
Purchases
Sales
January:
10 units at $120
6 units
February:
20 units at $125
5 units
May:
15 units at $130
9 units
September:
12 units at $135
8 units
November:
10 units at $140
13 units
On December 31, there were 26 units remaining in ending inventory. Using the Periodic FIFO
inventory valuation method, what is the value of cost of goods sold? (Assume all sales were made
on the last day of the month.)
A) $5,400. B) $8,670. C) $3,540. D) $3,270. E) $5,130.
@
$125
@
$130
41 units
@
$120
@
$125
@
$130
@
$120
@
$125
@
$130
41 units
104)
A company had the following purchases and sales during its first year of operations:
Purchases
Sales
January:
10 units at $120
6 units
February:
20 units at $125
5 units
May:
15 units at $130
9 units
September:
12 units at $135
8 units
November:
10 units at $140
13 units
On December 31, there were 26 units remaining in ending inventory. Using the Perpetual LIFO
inventory valuation method, what is the value of cost of goods sold? (Assume all sales were made
on the last day of the month.)
A) $5,470. B) $8,670. C) $5,305. D) $5,130. E) $5,400.
6
@
$120
=
5
@
$125
=
9
@
$130
=
@
$140
=
41 units
6
@
$120
=
5
@
$125
=
9
@
$130
=
@
$135
=
@
$140
=
41 units
6
@
$120
=
5
@
$125
=
9
@
$130
=
@
$135
=
@
$140
=
41 units
105)
A company had the following purchases and sales during its first month of operations:
January 1
Purchased 10 units at $4.00 per unit
January 9
Sold 6 units at $12.00 per unit
January 17
Purchased 8 units at $5.50 per unit
January 27
Sold 7 units at $12.00 per unit
Using the Perpetual weighted average method, what is the value of cost of goods sold? (Round
weighted average costs per unit to 2 decimal places.)
A) $23.35. B) $24.00. C) $40.00. D) $59.00. E) $25.00.
6
@
=
5
@
=
9
@
=
@
=
@
=
6
@
=
5
@
=
9
@
=
@
=
@
=
106)
A company had the following purchases and sales during its first year of operations:
Purchases
Sales
January:
10 units at $120
6 units
February:
20 units at $125
5 units
May:
15 units at $130
9 units
September:
12 units at $135
8 units
November:
10 units at $140
13 units
On December 31, there were 26 units remaining in ending inventory. Using the Periodic LIFO
inventory valuation method, what is the value of cost of goods sold? (Assume all sales were made
on the last day of the month.)
A) $5,470. B) $3,200. C) $5,130. D) $5,400. E) $8,670.
Average cost per unit
Cost of goods sold
107)
A company had the following purchases and sales during its first month of operations:
January 1
Purchased 10 units at $4.00 per unit
January 9
Sold 6 units at $12.00 per unit
January 17
Purchased 8 units at $5.50 per unit
January 27
Sold 7 units at $12.00 per unit
Using the Periodic weighted average method, what is the value of cost of goods sold? (Round
weighted average cost per unit to 2 decimal places.)
A) $23. B) $5. C) $27. D) $61. E) $84.
