Description	Units	Price/Unit	Total Price
June 1	Beginning Inventory	10	$3	$30
June 2	Purchase	30	$4	$120
June 10	Purchase	40	$6	$240
June 12	Sale	60	$20	$1,200
June 17	Purchase	70	$7	$490
June 21	Purchase	50	$10	$500
June 29	Sale	80	$22	$1,760

• Assume the company uses the PERIODIC method for inventory.
• Additional Information: The ending inventory consists of 15 units purchased on 6/2, 25 units purchased on 6/10, and the remaining units were purchased on 6/21

  Question 4 (Mandatory) (5 points)

  Assume the company uses the First-in-First-out (FIFO) cost-flow assumption. What will the company report as ending inventory on June 30th?

  Question 4 options:

  	$525
  	$575
  	$500
  	$570

  Question 5 (Mandatory) (5 points)

  Assume the company uses the Last-in-First-out (LIFO) cost-flow assumption. What will the company report as ending inventory on June 30th?

  Question 5 options:

  	$570
  	$525
  	$225
  	$270

  Question 6 (Mandatory) (5 points)

  Assume the company uses Specific Identification for inventory valuation. What will the company report as Cost of Goods Sold (CGS) for the month of June?

  Question 6 options:

  	$900
  	$410
  	$970
  	$450

  Question 7 (Mandatory) (5 points)

  Assume the company uses the Average-Cost (Weighted-Average) cost-flow assumption. What will the company report as Cost of Goods Sold (CGS) for the month of June?

  Question 7 options:

  	$966
  	$914
  	$425
  	$414

  Question 8 (Mandatory) (5 points)

  Assume the company uses the First-in-First-out (FIFO) cost-flow assumption. What will the company report as Cost of Goods Sold (CGS) for the month of June?

  Question 8 options:

  	$525
  	$870
  	$570
  	$810

  Question 9 (Mandatory) (5 points)

  Assume the company uses the Last-in-First-out (LIFO) cost-flow assumption. What will the company report as Cost of Goods Sold (CGS) for the month of June?

  Question 9 options:

  	$1,110
  	$270
  	$225
  	$1,170

  Question 10 (Mandatory) (3 points)

  How many units were sold during June?

  Question 10 options:

  	200
  	120
  	60
  	140

  Question 11 (Mandatory) (3 points)

  How many units were available for sale during sale during the month of June?

  Question 11 options:

  	120
  	200
  	140
  	60

  Question 12 (Mandatory) (3 points)

  What is the dollar value of inventory available for sale during sale during the month of June?

  Question 12 options:

  	$3,380
  	$1,380
  	$1,225
  	$4,340

  Question 13 (Mandatory) (5 points)

  How much total sales revenue was recognized during the month of June?

  Question 13 options:

  	$2,960
  	$1,200
  	$1,760
  	$2,080

  Question 14 (5 points)

  Assume the company uses the Specific Identification Method to value inventory. What will the company report as gross profit for the month of June?

  Question 14 options:

  	$2,150
  	$1,850
  	$1,994
  	$1,990

  Question 15 (5 points)

  Assume the company uses the Average-Cost (Weighted-Average) cost-flow assumption. What will the company report as gross profit for the month of June?

  Question 15 options:

  	$2,150
  	$1,994
  	$1,850
  	$1,990

  Question 16 (5 points)

  Assume the company uses the First-in, First-out (FIFO) cost-flow assumption. What will the company report as gross profit for the month of June?

  Question 16 options:

  	$2,150
  	$1,990
  	$1,850
  	$1,994

  Question 17 (5 points)

  Assume the company uses the Last-in, First-out (LIFO) cost-flow assumption. What will the company report as gross profit for the month of June?

  Question 17 options:

  	$1,994
  	$1,850
  	$2,150
  	$1,990

  Part 2: The Impact of Material Misstatements

  Question 18 (Mandatory) (3 points)

  If Year 1s beginning inventory is overstated, what is the impact on Year 1s Cost of Goods Sold?

  Question 18 options:

  	Overstated
  	Understated
  	No Impact

  Question 19 (Mandatory) (3 points)

  If Year 1s beginning inventory is understated, what is the impact on Year 1s Gross Margin?

  Question 19 options:

  	Understated
  	Overstated
  	No Impact

  Question 20 (Mandatory) (3 points)

  If Year 1s beginning inventory is understated, what is the impact on Year 2s Cost of Goods Sold?

  Question 20 options:

  	Overstated
  	No Impact
  	Understated

  Question 21 (Mandatory) (3 points)

  If Year 1s ending inventory is understated, what is the impact on Year 1s Cost of Goods Sold?

  Question 21 options:

  	No Impact
  	Understated
  	Overstated

  Question 22 (Mandatory) (3 points)

  If Year 1s ending inventory is overstated, what is the impact on Year 1s Gross Margin?

  Question 22 options:

  	Understated
  	Overstated
  	No Impact

  Question 23 (Mandatory) (3 points)

  If Year 1s ending inventory is understated, what is the impact on Year 2s Cost of Goods Sold?

  Question 23 options:

  	Overstated
  	Understated
  	No Impact

  Question 24 (Mandatory) (3 points)

  If Year 1s net cost of purchases is understated, what is the impact on Year 1s Cost of Goods Sold?

  Question 24 options:

  	No Impact
  	Understated
  	Overstated