1 Assume the following data for Burnette Merchandising for2019:

On December31, a physical count reveals 15 units in ending inventory.

Assume a perpetual inventory system and all sales occurred prior to October 30th. Under the FIFOmethod, what would the cost of goods sold on the income statementbe?

A.

$162

B.

$375

C.

$420

D.

$537

Beginning inventory 10 units at $7 each March 18 purchase 15 units at $9 each June 10 purchase 20 units at $10 each October 30 purchase 12 units at $11 each

2 On December31, a physical count reveals 15 units on hand.

Assume a perpetual system. Under themoving-weighted-average-cost method, what would the cost of goods sold for the first sale(20 units) be valuedat?

A.

$135

B.

$164

C.

$105

D.

$115

Beginning inventory

10 units at$7 each

March 18 purchase

15 units at$9 each

Sale

20 units at$15 each

June 10 purchase

20 units at$10 each

Sale

12 units at$15 each

October 30 purchase

12 units at$11 each

Sale

10 units at$16 each

3What is the value of the February ending inventory assuming thatSam's uses the perpetual FIFO inventorymethod?

A. $17,500

B. $15,875

C. $7,500

D $14,175

Sam's Wholesale Bikes

January 1 inventory balance

15 units at$350 per unit

January 4 purchase

50 units at$375 per unit

January 15 sale

40 units at$550 per unit

February 8 purchase

80 units at$405 per unit

February 15 sale

70 units at$550 per unit

4When prices arefalling, the cost of goods sold reported on the income statement on aweighted-average basis is generally_______.

A.

greater than on a FIFO basis

B.

equally likely to be higher or lower on aweighted-average basis as opposed to a FIFO basis

C.

lower than on a FIFO basis

D.

equal to ending inventory reported on a FIFO basis

5 Given the followingdata, what is the value of ending inventory if the FIFO periodic method isused?

Sales revenue

200 units at$20 per unit

Beginning inventory

60 units at$12 per unit

Purchases

210 units at$13 per unit

A.

$1,400

B.

$1,600

C.

$840

D.

$910

6 On December31, a physical count reveals 80 units in ending inventory.

Using the information from thetable, what would the cost of ending inventory using the periodic FIFO methodbe?

A.

$800

B.

$850

C.

$1,910

D.

$860

January 1 inventory balance

100 units at$10 per unit

March 2 purchase

50 units at$11 per unit

July 8 purchase

80 units at$10 per unit

November 15 purchase

30 units at$12 per unit

7 Given the followingdata, what is grossmargin?

Sales revenue

$950,000

Beginning inventory

150,000

Ending inventory

230,000

Purchases

720,000

A.

$150,000

B.

$640,000

C.

$570,000

D.

$31,0000

8 The cost of goods available for sale is equal to the_______.

A.

cost of goods sold plus the ending inventory

B.

ending inventory plus the sales revenues

C.

sales revenues minus the cost of goods sold

D.

cost of goods sold minus the ending inventory

9 Two separate errors affected Satellite City in 2019. The beginning inventory was understated by

$28,000

and the ending inventory was understated by

$43,000.

Net income in 2019 will be_______.

A.

understated by

$71,000.

B.

understated by

$43,000.

C.

overstated by

$15,000.

D.understated by $15,000.

10 What is the estimated ending inventory atcost, using the retailmethod?

Ending inventory at selling price(retail): $53,500

A.

$40,125

B.

$71,155

C.

$36,380

D.

$39,050

Cost Selling Price Beginning inventory $50,400 $67,900 Purchases 128,500 170,600 Goods available for sale $178,900 $238,500

Cost

Selling Price

Beginning inventory

$50,400

$67,900

Purchases

128,500

170,600

Goods available for sale

$178,900

$238,500