AAA Co. uses a periodic inventory system and has the following information in regard to its inventory:

Beginning inventory	450 units @ 18	$	8,100
Purchase on January 25	550 units @ 19		10,450
Purchase on March 15	450 units @ 20		9,000
Purchase on October 2	650 units @ 21		13,650
Goods available for sale		$	41,200

There are 750 units in ending inventory. What is the amount of the ending inventory using the FIFO method?

Multiple Choice

• $8,100

• $18,550

• $15,650

• $13,650

Selected financial information presented below was obtained from the financial statements of the Napa Valley Brewery:

Current Assets	$	54,000
Property and Equipment, net		74,000
Current Liabilities		52,000
Noncurrent Liabilities		42,000
Stockholders Equity		21,000
Sales Revenue		40,000
Net Income		21,200

What was the net profit margin?

Multiple Choice

• 53.00%

• 99.06%

• 39.00%

• 16.56%

Which of the following statements is correct about accounting for expected sales returns?

Multiple Choice

• Since no cash has yet been paid, a liability, Refund Liability, is credited for the sales price of expected returns.

• Expected returns are disclosed in the notes to the financial statements, but journal entries are not required.

• Since no inventory has yet been received, a liability, InventoryEstimated Returns, is credited for the cost of the expected returned items.

• Sales Revenue will be debited and Cost of Goods Sold will be credited for the sales price of expected returns.