1) Tetra Company purchased 2,000 units of inventory that cost $4.00 each on January 1, 2016. An additional 3,000 units of inventory were purchased on January 12, 2016 at a cost of $4.20 each. Tetra Company sold 4,000 units of inventory on January 20, 2016. Which of the following entries would be required to recognize the cost of goods sold assuming that Tetra Co. uses the perpetual inventory method and a FIFO cost flow method?

a)

Inventory	16,400
Cost of goods sold		16,400

b)

Cost of goods sold	16,600
Inventory		16,600

c)

Cost of goods sold	16,400
Inventory		16,400

d)

Inventory	16,600
Cost of goods sold		16,600

2) If a firm is using the lower-of-cost-or-market rule and if a write-down entry is required, which of the following effects will apply?

a) Net income will increase.

b) Gross margin will decrease.

c) Assets will decrease.

d) Gross margin will decrease and assets will also decrease.

3) Anton Co. uses the perpetual inventory method. Anton purchased 680 units of inventory that cost $8 each. At a later date the company purchased an additional 810 units of inventory that cost $10 each. If Anton uses the FIFO cost flow method and sells 1,050 units of inventory, the amount of cost of goods sold will be:

a) $10,500.

b) $9,140.

c) $8,400.

d) $10,580.

4)

The inventory records for Radford Co. reflected the following

Beginning Inventory @ May 1	1,400 units @ $4.40
First Purchase @ May 7	1,500 units @ $4.60
Second Purchase @ May 17	1,700 units @ $4.70
Third Purchase @ May 23	1,300 units @ $4.80
Sales @ May 31	4,500 units @ $6.30

Answer the following:

i) Determine the weighted average cost per unit (rounded) for May.

a) $4.63

b) $4.57

c) $4.70

d) $6.30

ii) Determine the amount of cost of goods sold assuming the LIFO cost flow method.

a) $21,600

b) $21,130

c) $20,700

d) $19,800

iii) Determine the amount of ending inventory assuming the FIFO cost flow method.

a) $6,720

b) $6,710

c) $6,160

d) $5,060