> Question 5 10 pts Your Company purchased goods FOB shipping point from Jones Company. Which of the following is a true statement regarding this transaction? Shipping costs are paid by Jones Company and added to inventory costs. O Shipping costs Jones Company are paid by and immediately expensed. Shipping costs are paid by Your Company and immediately expensed o Shipping costs are paid by Your Company and added to inventory costs. Question 6 10 pts Using LIFO, what is gross margin for the June sale? Per Unit Total Cost $12 $180 Units Date Source Purchased Beginning 1/1/2011 15 Inventory 2/1/2011 Purchase 10 3/1/2011 Purchase 20 Total Goods Available for Sale 45 Units sold 30 $13 $130 $14 $280 $590 $25 $370 O $395 $357 $300 $340 Question 7 10 pts What is cost of goods sold given the five transactions below? (Beginning balance inventory = $5,000). . Your Company purchased $60,000 of inventory on account, terms 2/10,n30. Your Company purchased inventory under FOB shipping point. Shipping cost $500. Your Company returned $10,000 of the inventory before paying its bill. Your Company paid the amount owed in the first transaction on day 8. Your company sold all of its inventory for $65,000 on account, terms 2/10,n30. $55,000 $54,500 $54,000 $54,300 $49,500 D Question 8 10 pts Your Company purchased two identical inventory items. The item purchased first cost $14.00, and the item purchased second cost $15.00. Your Company sold one of the items for $24.00. Which of the following statements is true? O Cost of goods sold will be higher if FIFO is used rather than welghted average The dollar amount assigned to ending inventory will be the same no matter which cost flow method is used O Ending inventory will be lower If weighted average is used rather than FIFO. Gross margin will be higher if LIFO is used rather than FIFO