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 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