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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

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 30th. 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:

22. 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 cost of goods sold for the month ended May 31 for Hope Company if the company uses Periodic FIFO as its inventory valuation method? Round calculation to the nearest dollar.

Answer:

23. 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 at May 31 for Hope Company if the company uses Periodic Average Cost method as its inventory valuation method? Round calculation to the nearest dollar.

Answer:

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