20. Kim Company just starting business made the following four inventory purchases in June:

June	1	150 units	$780
June	10	200 units	1,170
June	15	200 units	1,260
June	28	150 units	990
			$4,200

A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Kim Company is using periodic inventory system. Using the average cost method, compute the amount allocated to the ending inventory on June 30^th. Round calculation to the nearest dollar.

Answer:

21. The following data pertains to Zoom Companys merchandise inventory on hand at the end of the year. Zoom Company complies with GAAP including the lower of cost or market principle, applied on an individual product basis.

Commodity	Inventory Quantity	Unit Cost	Unit Replacement Cost/Market
A	200	$10	$ 8
B	100	$15	$16
C	400	$ 8	$ 7

What amount should be reported for merchandise inventory on the balance sheet?

Answer:

24. Hope Company had the following activity in its inventory account during May.

Date	Activity	Units	Cost Per Unit	Total Cost
May 1	Beginning inventory	100	$3.00	$300.00
May 3	Purchase	40	3.10	124.00
May 7	Sale	50
May 12	Purchase	50	3.20	160.00
May 16	Sale	70
May 23	Sale	40
May 30	Purchase	60	3.30	198.00

What is the ending inventory balance at May 31 for Hope Company if the company uses Periodic LIFO as its inventory valuation method? Round calculation to the nearest dollar.

Answer:

25. David Company reported net income of $56,000. Two separate errors affected David Company in 2019. The beginning inventory was overstated by $17,000 and the ending inventory was overstated by $23,000. Ignoring taxes, compute correct net income for 2019.

Answer: