Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume the following information: April 1 Inventory 4 units at cost of $19 April 10 purchase 6 units at cost of $19 April 12 sale

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Assume the following information: April 1 Inventory 4 units at cost of $19 April 10 purchase 6 units at cost of $19 April 12 sale 7 units Using the perpetual inventory system, what is the amount of ending merchandise inventory? OA. $19 O B. $190 C. $57 OD. $133 Assume the following information: May 1 Inventory 12 units at cost of $21 May 9 purchase 7 units at cost of $21 May 15 sale 13 units Using the perpetual inventory system, what is the amount of ending merchandise inventory? O A. $21 O B. $273 O C. $126 OD. $399 Ending inventory for the current accounting period is overstated by $2,700. What effect will this error have on Cost of Goods Sold and Net Income for the current accounting period? O A. Cost of Goods Sold Overstated OB. Cost of Goods Sold Overstated OC. Cost of Goods Sold Understated OD. Cost of Goods Sold Understated Net Income Overstated Net Income Understated Net Income Understated Net Income Overstated Everyday Wear Retail had the following balances and transactions during 2024 Beginning Inventory 15 units at $71 June 10 Purchased 40 units at $81 December 30 Sold 20 units December 31 Replacement cost $66 The company maintains its records of inventory on a perpetual basis using the first - in, first-out inventory costing method, Calculate the amount of ending Merchandise Inventory on December 31, 2024 using the lower-of-cost-or-market rule. O A. $2,310 O B. $2,485 OC. $1,065 OD. $2,640 Martha, Inc. had 21,000 units of ending inventory that were recorded at the cost of $8.00 per unit using the FIFO method. The current replacement cost is $4.50 per unit. Which of the following amounts would be reported as ending Merchandise Inventory on the balance sheet using the lower-of-cost-or-market rulo? O A. $262,500 OB. $94,500 OC. $189,000 D. $168,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions