1. The following data are for the Bi Star Technologies for the year ended December 31, 2011:

Beginning inventory	$325,000	Net purchases	$945,000
Net sales revenue	$2,100,000	Normal gross profit percentage	40%

What is the estimated ending inventory?

A.

$10,000

B.

$635,000

C.

$167,500

D.

$762,000

2.

Given the following data, what is the value of the ending inventory as determined by the LIFO method?

Sales revenue	300 units at $15 per unit
Purchases	240 units at $10 per unit
Beginning inventory	120 units at $9 per unit

A.

$2,940

B.

$540

C.

$600

D.

$2,880

3.

Given the following data, what is the value of the ending inventory as determined by the FIFO method?

Sales revenue	300 units at $15 per unit
Purchases	240 units at $10 per unit
Beginning inventory	120 units at $9 per unit

A.

$540

B.

$600

C.

$2,820

D.

$2,880

4.

Given the following data, calculate the cost of ending inventory using the FIFO costing method.

Date	Item	Unit
1/1	Beginning inventory	30 units at $10 per unit
2/25	Purchase of inventory	15 units at $12 per unit
5/20	Purchase of inventory	25 units at $13 per unit
8/15	Purchase of inventory	20 units at $14 per unit
10/17	Purchase of inventory	25 units at $15 per unit
12/31	Ending inventory	65 units

A.

$740

B.

$720

C.

$915

D.

$545

5.

Given the following data, calculate the value of ending inventory using the

averageminuscost

method.

Date	Item	Unit
1/1	Beginning inventory	40 units at $12 per unit
3/5	Purchase of inventory	18 units at $14 per unit
5/30	Purchase of inventory	24 units at $18 per unit
12/31	Ending inventory	20 units

A.

$1,419.12

B.

$ 851.71

C.

$1,164.00

D.

$ 284.00

6.

Under a perpetual inventory system, when a sale is made:

A.

the company makes a journal entry to record the sale and the cost of goods sold.

B.

the company makes a journal entry to record only the cost of goods sold.

C.

no journal entry needs to be made.

D.

the company makes a journal entry to record the sale only.

7.

Tonga Industries reported the following:

Net Sales	$450,000	Cost of goods sold	$360,000
Operating expenses	$60,000	Tax Rate	40%

The net income is:

A.

$ 18,000.

B.

$ 12,000.

C.

$180,000.

D.

$ 30,000.

8.

Given the following data, calculate the cost of ending inventory using the LIFO costing method.

Date	Item	Unit
1/1	Beginning inventory	30 units at $10 per unit
2/25	Purchase of inventory	15 units at $12 per unit
5/20	Purchase of inventory	25 units at $13 per unit
8/15	Purchase of inventory	20 units at $14 per unit
10/17	Purchase of inventory	25 units at $15 per unit
12/31	Ending inventory	65 units

A.

$740

B.

$915

C.

$720

D.

$545