Knowledge Check 01 The inventory transactions of VTS Corporation are shown below. Unit Date Jan. 1 Feb. 25 May 21 Jul. 15 Dec. 10 Transaction Beginning inventory Sale Purchase Purchase Sale Number of Units 500 300 400 500 800 Cost/Price $10 20 12 15 20 All purchase/sale transactions are made on credit. The company uses the FIFO method and perpetual inventory system to record transactions. Which of the following will be recorded on February 25? Multiple Choice Debit to Accounts Receivable for $3,000 O Credit to Inventory for $5,000 Credit to Sales Revenue for $6,000 O O Debit to Cost of Goods Sold for $6,000 2 Knowledge Check 01 The inventory transactions of VTS Corporation are shown below. Date Jan. 1 Feb. 25 May 21 Jul. 15 Dec. 10 Transaction Beginning inventory Sale Purchase Purchase Sale Number of Units 500 300 400 500 800 Unit Cost/Price $10 20 12 15 20 All purchase/sale transactions are made on credit. The company uses the FIFO method and perpetual inventory system to record transactions. Which of the following will be recorded on May 21? Multiple Choice Credit to Accounts Payable for $4,800 Credit to Cash for $4,800 Credit to Cost of Goods Sold for $4,800 Debit to Sales Revenue for $4,800 Knowledge Check 01 The inventory transactions of VTS Corporation are shown below. Date Jan. 1 Feb. 25 May 21 Jul. 15 Dec. 10 Transaction Beginning inventory Sale Purchase Purchase Sale Number of Units 500 300 400 500 800 Unit Cost/Price $10 20 12 15 20 All purchase/sale transactions are made on credit. The company uses the FIFO method and perpetual inventory system to record transactions. The entry to record the transaction on December 10 will involve a debit to Cost of Goods Sold for Multiple Choice O O $11,100 O $9,800 O $12,300 O $8,600 Knowledge Check 01 The inventory transactions of VTS Corporation are shown below. Date Jan. 1 Feb. 25 May 21 Jul. 15 Dec. 10 Transaction Beginning inventory Sale Purchase Purchase Sale Number of Units 500 300 400 500 800 Unit Cost/Price $10 20 12 15 20 All purchase/sale transactions are made on credit. The company uses the FIFO method and perpetual inventory system to record transactions. What is the ending balance of Inventory under the FIFO method? Multiple Choice $6,200 O $3,200 O O $4,500 O $5,000 Knowledge Check 01 The inventory transactions of VTS Corporation are shown below. Date Jan. 1 Feb. 25 May 21 Jul. 15 Dec. 10 Transaction Beginning inventory Sale Purchase Purchase Sale Number of Units 500 300 400 500 800 Unit Cost/Price $10 20 12 15 20 All purchase/sale transactions are made on credit. The company uses the FIFO method and perpetual inventory system to record transactions. What is the amount of LIFO adjustment needed to adjust FIFO inventory records reported for the year to LIFO for external reporting purposes? Multiple Choice $1,300 O $4,500 O O $3.000 O O $1,000
