12.During July, the following purchases and sales were made Company uses a perpetual inventory system ses and sales were made by Phat Company. There was no beginning inventory. Phase July 3 11 20 Purchases 40 units 514 40 units $15 20 units $16 July 13 22 Sales 50 units 20 units Under the LIFO method, the cost of goods sold for each sale is: July 13 July 22 a b. c. d. $700 740 750 800 $280 320 300 320 King Kong has the following inventory information July 1 Beginning Inventory 20 units at $90 Purchases 120 units at $92 Sale 90 units Purchases 60 units at $95 Sale 58 units Assuming that a perpetual inventory system is used, what is the ending inventory on a FIFO basis? a $4,744 b. $5.860 c. $4,940 d. $6,346 14. In a period of rising prices, FIFO will have a. lower net income than LIFO b. lower cost of goods sold than LIFO. c. lower income tax expense than LIFO. d. lower net purchases than LIFO. 15. The inventory turnover is computed by dividing cost of goods sold by a. beginning inventory. b. ending inventory. c. average inventory. d. 365 days