1. . A company had inventory of 5 units at a cost of $20 each on November 1. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, they sold 18 units for $54 each. Using the LIFO perpetual inventory method, what was the cost of the 18 units sold?

   A. $395

   B. $510

   C. $450

   D. $410

Question 2

1. 2. Snappy company has inventory of 15 units at a cost of $12 each on August 1. On August 5, they purchased 10 units at $13 per unit. On August 12 they purchased 20 units at $14 per unit. On August 15, they sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory on August 12 after the sale?

   A. $140

   B. $160

   C. $210

   D. $380

Question 3

1. 3. On Saturday, June 30, PK Pool Supplies sold merchandise to John Krock on account. The sales price was $5,300, and the cost of goods sold was $4,200. The sales revenue was recorded immediately, but the entry recording the cost of goods sold was dated Monday, July 2. As a result, net income for June was:

   A) Overstated by $5,300.

   B) Overstated by $4,200.

   C) Overstated by $1,100.

   D) Not affected, but the net income for July is understated.

Question 4

1. 4. A company had gross profit of $134,200 on net sales of $205,000. If ending inventory was $8,000 and average inventory was $7,080, what is the company's inventory turnover? A. 10.0 B. 8.85 C. 16.77 D. 18.95

Question 5

1. 5. A company purchased property for $100,000. The property included a building, a parking lot and land. The building was appraised at $62,000; the land at $45,000 and the parking lot at $18,000. The value of the land that will be included in the accounting record is: A. $0 B. $36,000 C. $42,000 D. $45,000

Question 6

1. 6. Carlson Imports sold a depreciable plant asset for cash of $35,000. The accumulated depreciation amounted to $70,000, and a loss of $5,000 was recognized on the sale. Under these circumstances, the original cost of the asset must have been:

   A) $65,000.

   B) $75,000.

   C) $100,000.

   D) $110,000.

Question 7

1. 7. An asset which costs $7,200 and has accumulated depreciation of $1,800 is sold for $4,500. What amount will be recognized when the asset is sold?

   A) A gain of $900

   B) A loss of $900

   C) A loss of $2,700

   D) A gain of $2,700

Question 8

1. 8. Both the straight-line depreciation method and the double-declining-balance depreciation method: A. Produce the same total depreciation over an asset's useful life B. Produce the same depreciation expense each year C. Produce the same book value each year D. Are acceptable for tax purposes only

Question 9

9. A company purchased a delivery van for $23,000 with a salvage value of $3,000 on September 1, 2010. It has an estimated useful life of 5 years. Using the straight-line method, how much depreciation expense should the company recognize for 2010? A. $1,000 B. $1,333 C. $1,533 D. $4,000