Please answer all questions.
Units Unit Cost Total Cost 16 $64 20 $4 $3 $5 $60 $60 12 Purchased May June July Units Available For Sale Ending Inventory Units Sold Units on Hand 48 $184 42 6 $ Cost of Goods Sold S Using the FIFO method and the information in this image, what is the Cost of Units on Hand and Cost of Goods Sold during this period? a.) Units on Hand: $18 Cost of Goods Sold: $166 O b.) Units on Hand: $30 Cost of Goods Sold: $154 c.) Units on Hand: $24 Cost of Goods Sold: $160 d.) Units on Hand: $36 Cost of Goods Sold: $148 Units Purchased 1st Purchase 2nd Purchase 100 100 Unit Cost Total Cost $52 $5,200 $60 $6,000 $64 $6,400 $17,600 3rd Purchase 100 300 Units Available For Sale Ending Inventory Units Sold Units on Hand 240 60 $ Cost of Goods Sold $ Using the LIFO method and the information in this image, what is the Cost of Units on Hand and Cost of Goods Sold during this period? a.) Units on Hand: $3,600 Cost of Goods Sold: $14,000 b.) Units on Hand: $3,520 Cost of Goods Sold: $14,080 c.) Units on Hand: $3,120 Cost of Goods Sold: $14,480 d.) Units on Hand: $3,840 Cost of Goods Sold: $13,760 Wanda owns a book store and needed to compute her inventory. She had 600 books on the floor and another 300 in the storeroom. She also had 45 electronic readers on the floor and 25 in the storeroom. Each book costs $15 and each electronic reader costs $250. Using the weighted average cost method, the cost of each item being sold is a.) $31.96 b.) $192.86 c.) $19.44 d.) $132.50 Which of the following statements describes the FIFO inventory valuation method? a.) The goods are assumed to be sold over time from oldest to newest. b.) The goods purchased last month are sold after the goods purchased this month. c.) It doesn't matter when the items are bought or sold because the cost is averaged. d.) The goods purchased last week are sold before the goods purchased last month. Which inventory method is being used when the natural flow of goods is followed? a.) FIFO b.) Weighted average c.) LIFO d.) Specific ID Which of the following accounts would the financial statement of a merchandise company include, but a service company would not? a.) Inventory and Unearned Revenue b.) Accounts Receivable and Inventory c.) Inventory and Cost of Goods Sold d.) Assets and Liabilities Revenue Sales Returns Sales Discounts Net Sales Cost of Goods Sold Gross Profit Gross Profit Margin % $456,000 $3,100 $1,200 $451,700 $67,800 Given the information provided in this illustration, what are the gross profit and gross margin ratio? a.) Gross Profit: $383,900 Gross Margin Ratio: 85% b.) Gross Profit: $379,600 Gross Margin Ratio: 82% c.) Gross Profit: $72,100 Gross Margin Ratio: 16% d.) Gross Profit: $67,800 During the past six months, Ben sold goods that cost $43,500, his expenses totaled $3,500 and his freight in totaled $1,750. His company's average stock of goods during the same period was $12,400. The inventory turnover ratio for Ben's company is a.) 3.93 b.) 3.08 c.) 3.37 d.) 3.51
