2021 Beginning Inventory (purchased in 2020) 200 units @ $24 per unit Purchases: Purchase 1 on 2/1/21 Purchase 2 on 6/12/21 500 units @ $26 per unit 300 units @ $30 per unit Sales: Sale 1 on 3/5/21 Sale 2 on 9/15/21 450 units @ $50 per unit 400 units @ $50 per unit When Angel examined what items were sold, they noted that 150 of the units are from 2021 beginning inventory, 430 units are from the 2/1/21 purchase, and 270 units are from the 6/12/21 purchase. 1. What is Inventory on the 12/31/21 Balance Sheet if Angel uses FIFO? a. $3,600 b. $4,500 $22,300 d. $23,200 c. 2. What is Cost of Goods Sold on the 2021 Income Statement if Angel uses LIFO? a. $3,600 b. $4,500 $22,300 d. $23,200 c. 3. What is Inventory on the 12/31/21 Balance Sheet if Angel uses Specific Identification? a. $3,920 b. $4,500 c. $22,880 d. $23,200 4. What is Gross Profit on the 2021 Income Statement if Angel uses Weighted Average Cost? a. $4,020 b. $19,720 c. $22,780 d. $38,480 5. On January 29, 2021, Verdi Corporation sold and shipped merchandise to KBA, Inc. for $400,000 on credit. Goods were shipped FOB destination and arrived at KBA warehouse on February 2. Which of the following statements is true? a. Verdi Corporation includes the $400,000 as part of its January 31 Inventory balance. b. KBA, Inc. includes the $400,000 as part of its January 31 Inventory balance. c. Both companies include the $200,000 as part of their January 31 Inventory balances. d. The goods are in transit on January 31 so neither company includes the $400,000 as part of its January 31 Inventory balance. 6. Cozy Corporation uses a periodic inventory system. When Cozy's manager counts its inventory on December 31, 2021, he accidentally forgets to count one pile of blankets, resulting in 2021 ending inventory being understated by $80,000. The manager counts the December 31, 2022 inventory correctly. Which of the following statements is true related to Cozy Corporation's 2021 and 2022 financial statements? a. 2022 Beginning Inventory will be overstated by $80,000. b. 2022 Cost of Goods Sold will be understated by $80,000. c. 2021 Cost of Goods Sold will be understated by $80,000. d. Both a and b are true. All of the above are true. e. a. 7. In a period of rising prices, which of the following inventory methods generally results in the lowest balance sheet figure for inventory? Weighted Average Cost b. FIFO c. LIFO d. Cannot tell without more information