Company A with no inventory on June 1st made the following four inventory purchases

..............................................Dollar ($) Value

June 2 ..........300 units ..........$ 800

June 10 ........200 units .............590

June 15 ........200 units .............630

June 28 ........150 units ......... 525

...............................................$2,545

A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand.

The inventory method which results in the highest gross profit for June is...

1. the FIFO method.

2. the LIFO method.

3. the weighted average unit cost method.

4. None of the above

The LIFO Ending Inventory value for Company A on June 30th is:

1. $1,452.50

2. $1,092.50

3. $533.33

4. $2,011.67

Use the following items taken from the financial statements of the Postal Service for the year ending December 31, 2012 to answer the following two questions :

Accounts payable ...........................................................$ 9,000

Accounts receivable ........................................................11,000

Accumulated depreciation equipment ......................28,000

Advertising expense ........................................................21,000

Cash ...................................................................................11,000

Owners capital (12/31/12) ............................................105,000

Owners drawings .............................................................14,000

Depreciation expense ......................................................12,000

Insurance expense .............................................................3,000

Note payable, due 6/30/13 ...............................................5,000

Prepaid insurance (6 - month policy) ..............................6,000

Rent expense ....................................................................17,000

Salaries and wages expense ..........................................32,000

Service revenue .............................................................125,000

Supplies/Inventory ............................................................4,000

Supplies expense ...............................................................6,000

Equipment (Long-term) ................................................210,000

What are total current liabilities of the Postal Service at December 31, 2012?

1. $14,000

2. $15,000

3. $18,000

4. $105,000

What are the total current assets of the Postal Service at December 31, 2012?

1. 242,000

2. 22,000

3. 32,000

4. 28,000