Question 1

Marigold Industries has the following inventory information.

July1. Beginning Inventory 30 units at $120

5. Purchases. 240 units at $113

14 Sale. 150 units

21 Purchases. 90 units at $110

30 Sale. 130 units

Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a FIFO basis?

A) $36000

B) $8800

C) $9250

D) $31200

Question 2

A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $65; Second purchase $77; Third purchase $66. If the company sold two units for a total of $205 and used FIFO costing, the gross profit for the period would be

A) $63.

B) $68.

C) $74.

D) $62.

Question 3

Sheffield Company's inventory records show the following data:

Units Unit Cost.

Inventory: January 1 10500. 9.40

Purchases: June 18. 8800. 7.00

November 8 5500 6.00

A physical inventory on December 31 shows 4200 units on hand. Sheffield sells the units for $15 each. The company has an effective tax rate of 18%. Sheffield uses the periodic inventory method. Under the LIFO method, cost of goods sold is

A) $25200.

B) $163900.

C) $130300.

D) $153820.