1. Alpha First Company just began business and made the following four inventory purchases during Year 1: Units Total Costs Day 1 - 150 units - $1,040 Day 60 - 200 units - $1,560 Day 150 - 200 units - $1,680 Day 320 - 150 units - $1,320 $5,600

A physical count of merchandise inventory on December 31 reveals that there are 210 units on hand. Using the LIFO periodic inventory method, the amount allocated to cost of goods sold (GOGS) on December 31, Year 1 is: a. $1508. b. $3776. c. $3920. d. $4092.

2. Using the same facts as in Question #1, except that Alpha First Company uses the average cost periodic inventory method, the amount allocated to COGS on December 31, Year 1 is: a. $1680. b. $3776. c. $3920. d. $4092.

3. Quark Inc. just began business and made the following four inventory purchases during Year 1: Units Total Costs: Day 1 - 150 units - $990 Day 60 - 200 units - $1,344 Day 150 - 200 units - $1,368 Day 320 150 units - $1,062 $4,764

A physical count of merchandise inventory on December 31 reveals that there are 200 units on hand. Using the FIFO periodic inventory method, the amount allocated to ending inventory on December 31, Year 1 is: a. $1320. b. $1326. c. $1404. d. $1416.

4. Under the perpetual inventory system, which of the following accounts would not be used? a. Sales Revenue b. Inventory c. Purchases d. Cost of Goods Sold

5. In times of rising prices, which method of assigning costs to COGS will generally generate the largest net income for a business? a. Perpetual. b. Average cost. c. FIFO. d. LIFO.

6. During Year 1, Pinstripes, Inc. purchased $2,200,000 of inventory. The cost of goods sold for Year 1 was $1,800,000. The ending inventory on December 31, YR 1, was $400,000 and the beginning inventory was zero. What was the inventory turnover for YR 1? a. 4.0. b. 5.0. c. 6.0. d. 8.0. e. 9.0.

7. Based on the facts in Question #6, on average, approximately how many days during the year does Pinstripes, Inc.s inventory sit on its shelves before that inventory is sold? (Choose the best answer from those provided.) a. Approximately 9 days. b. Approximately 40 days. c. Approximately 60 days. d. Approximately 80 days.