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8) A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $12,000 and paid $770 for the freight-in. The company

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8) A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $12,000 and paid $770 for the freight-in. The company sold the whole lot to a supermarket chain for $13,000 on account. The company uses the specific-identification method of inventory costing Which of the following entries correctly records the cost of goods sold? 12,770 A) Merchandise Inventory Cost of Goods Sold 12,770 12,770 B) Cost of Goods Sold Merchandise Inventory 12,770 obal 12,000 Cost of Goods Sold Sales Revenue 12,000 12,000 D) Cost of Goods Sold Merchandise Inventory 12,000 9) Jason Retail had the following balances and transactions during 2017. Beginning Inventory June 10 December 30 December 31 10 units at $74 Purchased 20 units at $81 Sold 20 units Replacement cost $83 The company maintains its records of inventory on a perpetual basis using the FIFO inventory costing method. Calculate the amount of ending Merchandise Inventory at December 31, 2017 using the lower-of-cost-or-market rule. A) $2,490 B) $1,660 5830 D) $810 10) Madison, Inc. had the following balances and transactions during 2017, Beginning Inventory June 10 December 30 December 31 40 units at $72 Purchased 120 units at $76 Sold 113 units Replacement cost $79 The company maintains its records of inventory on a perpetual basis using the last-in first-out! inventory costing method. Calculate the amount of ending Merchandise Inventory at December 31 2017 using the lower-of-cost-or-market rule. (Round any intermediate calculations two decimal places, and your final answer to the nearest dollar.) A) $2,880 B) $3,572 $3,713 D) $3,412 11) Under which of the following inventory costing methods is the ending inventory based on the costs of the most recent purchases? A) specific identification B) last-in, first-out C) first-in, first-out D) weighted average

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