Beginning inventory, purchases, and sales for an inventory item are as follows:

Sept 1 Beginning inventory 24 units @ $15

Sept 5 Sale 17 units

Sept 17 Purchase 10 units @ $20

Sept 30 Sale 8 units

Assuming a perpetual inventory system and the first-in, first-out method (FIFO), what is the cost of the merchandise sold for the September 30 sale and the value of the ending inventory on September 30?

a.) $100 and $120

b.) $120 and $100

c.) $180 and $125

d.) $125 and $180

Question 2

Assuming a 360-Day year, the interest charges by the bank at the rate of 6% on a 90-day discounted note payable of $100,000 is:

a.) $6,000

b.) $1,500

c.) $500

d.) $3,000