Determine the gross profit using the weighted average cost flow method, assuming that only one item was sold on March 24 for $14.

Date	Item	Units	Cost	Total
March 3	Purchase	1	$4	$4
March 8	Purchase	1	6	6
March 22	Purchase	1	8	8
	Total	3		$18

a.$8

b.$4

c.$6

d.$14

The specific identification inventory method cannot be used.

a. when all units sold are alike.

b. when each inventory unit can be specifically identified.

c. when the unit sold is identified with a specific purchase.

d.by an automobile dealer where automobiles have unique serial numbers.

The inventory subsidiary ledger is not used

a.to keep track of purchases discounts.

b.to keep track of inventory purchased.

c.to keep track of inventory sold.

d.to keep track of proper inventory maximum and minimum levels.

Determine the gross profit using the periodic inventory system and the FIFO inventory method, assuming that 18 units were sold at a sales price of $14.

Date	Item	Units	Cost	Total
January 1	Beginning inventory	5	$3	$15
January 12	Purchase	10	4	40
January 18	Purchase	8	5	40
	Totals	23		$95

a.$80

b.$252

c.$182

d.$95

Determine the value of the inventory at the lower of cost or market, assuming LCM is applied individually to each item.

Item	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)
S	3	$34	$30
T	2	28	30

a.$102

b.$158

c.$146

d.$150