1020Y1230Y

$ 11.00

$ 12.00

C

$ 11.20

d

$ 10.00

Barnes Software purchases 10 units of microchips for $10, 50 units for $15 each, and 20 units for $20 each on March 1, 13, and 20, respectively. Assuming the company uses the weighted average cost formula under a perpetual system, if Barnes sells 25 microchips on March 18 what is the cost of goods sold on this sale?

A

$475.00

B

$390.75

C

$354.25

D

$325.00

Which of the following inventory cost flow assumptions is not acceptable for Canadian GAAP?

A	Specific identification.

B	All of these answers are acceptable.

C	Weighted-average method.

D

FIFO.

Assuming falling inventory prices, which inventory cost flow assumption results in reporting the higher net income?

A

FIFO.

B	Specific identification.

C	Weighted average.

D	None of these.

If the ending inventory is overstated:

A	assets will be understated and owners equity will be overstated.

B

C

d

$ 400

$ 400

C

800

d

400