Question
Adams Inc. started the year with merchandise inventory of $20 (4 widgets @ $5 each). During the year the following activity occurred: Date Purchases Sales
Adams Inc. started the year with merchandise inventory of $20 (4 widgets @ $5 each). During the year the following activity occurred:
| Date | Purchases | Sales |
| February 1 | $42 (7 widgets @ $6) |
|
| March 20 |
| 5 widgets sold |
| July 10 | $21 (3 widgets @ $7) |
|
| October 15 | $45 (5 widgets @ $9) |
|
| November 4 |
| 8 widgets sold |
If Adams uses the Periodic Inventory method (LIFO basis) the ending merchandise inventory will have a recorded value of:
a. $32 b. $46 c. $50 d. $52 e. $54
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Internal Audit Quality Developing A Quality Assurance And Improvement Program
Authors: Sally-Anne Pitt
1st Edition
1118715519, 978-1118715512
