(10 Long lived >> Use the following information to answer questions 10 to 16 Why Inc. is a wholesale that uses a perpetual inventory system. The common Product B during the fiscal year ended on December 31, 2020 Date Transactions Units Unit Cost Sale Price March 5 Purchase 19.000 $ 9 June 15 Sale 10,000 $27 September 19 Purchase 8,000 11 November 20 Sale 16.000 30 Questions each: 60 Additional information: The beginning inventory consisted of 7.000 units at a total cost of $56,000 . All sales are made on account with credit forms, 2/10, 1/30 Customers who purchased 10,000 units on November 20 paid the amount duo within the discount period of domas pader accounts receivable after the discount period At the start of each question below, we indicate whether the First-in, First-out (FFO) method of the Weighted Average COMA) used, 10 of 20 (FIFO) The cost of ending inventory at December 31, 2020 OA $11,000 OB 388,000 OG 580,000 OD $10,000 Unsuro . Il of 20 (FIFO) The cost of sales for 2020 is: OAS248,000 OB. $235,000 O $227,000 OD. $304,000 Unsure 12 of 20 FIFO) The gross profit percentage to 2020 DA 0040 O360.73 OC 68.41 OD 50 145 OE. None of the other percentages Unsure 13 of 20 (FIFO) Assume for this question only that the cost of sales is $240,000 in that case, the inventory turnover ratio for 2020 would equal OA 333 OB 2.45 OC 3.53 OD 43.63 OE None of the other ratios Unsure 4 of 20 1:51:17 (WAC) The average cost per of the 10.000 sold on 15 OA510 OB5933 OG $8.50 OD 58.73 Unisur 15 of 20 Whitby used a periodic Inventory system rotead of a perpetuat nystem wychot va choing a statement would be correct? DAW the FIFO method is used the cost olas under the periodic system would turn to the colo under the perpetual system OB. If the WAC method is used the cost of ending inventory December 31, 2020 the periodowym be smaller than the cost of ending inventory under the perpelul system OC There is a need for a physical inventory count the periodic system is used, what is perpetual system is used OD. Both inventory control systems are equally efficient in Kooping track of wwertory guitar the accounting period. Unsure 16 of 20 Assume that Whitby purchased goods for $2.000 from a local supplier on Dec 30,00 with terms FO.B. shipping point. The merchandise had not arrived at the company's won until January 2, 2021, and was not included in the inventory count at year end hat would this error have on the company's cost of sales and net earnings for 20207 The companys income tax rate is 40 percent O A Understated by $2,000 Overstated by $1,200 OB. Overstated by $2,000 Understated by 31,200 OC. Understated by $2,000 Overstated by $800 OD. Overstated by $2,000 Understated by $800 Unsure YA 2 3 4 5 6 Previous page Next page