Question 11 M. Co uses a periodic inventory system with the specific identification method of cost assignment. Date Units Unit cost $ Beginning inventory July 1 1000 9 Purchase 12 2000 11 Purchase 26 1000 12 On 27 July 500 units from beginning inventory and 1000 units from the 12 July purchase were sold. What was the value of ending inventory at 31 July? a. $20 500 b. $23 000 c. $27 500 d. $28 500 Question 12 Indigo Ltd uses the FIFO assumption with the periodic inventory method. Units Unit cost Total cost Beginning inventory 12 $10 $120 Purchase 10 $12 $120 Purchase 6 $11 $ 66 Sales during year were 16 units. What was the value assigned to the closing stock of this item at the end of the period? a. $66 b. $120 c. $138 d. $144 Question 13 A major theoretical problem in accounting for inventory is: a. calculating the cost of purchases. b. allocating costs between cost of sales and stock on hand. c. counting the stock. d. deciding which goods are obsolete. Question 17 Which of the following is a disadvantage to business of the LIFO method of applying costs to inventory? a. Current income is matched with the most recent costs of acquiring goods. b. It understates the balance sheet value for inventory. c. It is difficult for a computer program to apply the method. d. If it is allowed for tax purposes, in times of rising prices it results in less tax being paid in the current period. Question 18 Florida Inc uses a periodic inventory system with the weighted average method of cost assignment. The following data are available. Date Units Unit Cost Total Cost Beginning inventory Jan 1 2000 $6 $12 000 Purchase Mar 13 4000 $7 $28 000 Purchase June 20 6000 $8 $48 000 Ending inventory Dec 31 1000 The cost of the ending inventory to the nearest dollar is: a. $8333. b. $8000. c. $7300. d. $6000.