The Zenith Company sells tablet computers for outdoor use that are waterproof, shock resistant and run on solar power. The following information has been extracted from the records of Zenith: Jan 1: Beginning Inventory of 7,000 units @ $4 each Jan 10: Bought 12,000 units a $3 Jan 15: Sold 14,000 units @ $8 Jan 30: Bought 8,000 units $5 If Zenith uses the LIFO cost flow assumption and the periodic method for inventory, the cost of goods sold for January, is Multiple Choice O $55,000 O $58,000 $44,000 O $48.000 o o None of the other alternatives are correct Choose the cost flow assumption in which the costs assigned to the ending inventory are the costs of the earliest units acquired. Multiple Choice None of the other alternatives are correct FIFO method specific identification method LIFO method weighted-average method If for an entire year prices are falling over time for inventory purchases (i.e. a period of deflation), then the inventory costing method that will produce the highest reported profits that year for a firm that started business that year will be: Multiple Choice O FIFO LIFO O O FISH O Weighted Average Cost O Unspecific Identification If a company makes an error in counting its ending inventory such that it is overstated from its true value by $10,000 then: Multiple Choice Net income will be overstated this period O O Cost of sales will be overstated by $10,000 this period Net Income for the period will be understated for this period O The error has no effect on income since inventory is a balance sheet account O O None of the other alternatives are correct The Deluxe Company sells toothbrushes. The following information has been extracted from the records of Deluxe. Jan 1: Beginning inventory = 10,000 units @ $2 each Jan 10: Buy 10,000 units @ $3 Jan 15: Sell 5,000 units @ $5 Jan 30: Buy 4,000 units @ $4 If Deluxe uses the FIFO cost flow assumption and the perpetual method for inventory, the cost of goods sold for January, is Multiple Choice O $25,000 $10,000 O $20.000 O $15,000 None of the other alternatives are correct Hammer Co. is in the business of buying hammers at wholesale prices and reselling them at retail prices. The following information for the month of February was collected by Hammer Co.'s Purchase and Sales departments: Unit cost/sales price Units 300 $15 Date Feb 4 9 12 17 26 Transactions Beginning inventory Purchase Sale Purchase Sale 100 320 150 100 18 27 20 30 If the company uses a LIFO periodic Inventory system, what was the cost of the inventory on hand after the February 26th sale and the cost of Goods Sold for the whole month of February? Multiple Choice Inventory on Hand $2,200 Cost Goods Sold $7.100 None of the other alternatives are correct O Inventory on Hand $1,950 Cost of Goods Sold $7100 O O Inventory on Hand $2,200 Cost of Goods Sold $7,350 O Inventory on Hand $1,950 Cost of Goods Sold $7,350 The following information relates to March transactions for the Toy Factory, a company which uses LIFO and a perpetual inventory system. March 1 March 10 March 15 March 22 Beginning inventory Purchase Sale Purchase 75 toys at $30/toy 50 toys at $35/toy 90 toys B0 toys at $36/toy What is the per unit cost of the 90 toys sold on March 15? Multiple Choice O 44.5% of the 90 toys at $30 and 55.5% of the 90 toys at $35 O O 83.5% of the 90 toys at $30 and 16.5% of the 90 toys at $35 O All at $30 o O All at $35 O We need to know the closing balance from the previous month to calculate the answer An electronics retailer purchases $20,000 of computers for resale. The retailer spends $500 in transportation cost, $2,000 in labor and parts to upgrade the computers and $300 to advertise them. What is the total cost of the inventory to the electronics retailer that would be included in the value of inventory? Multiple Choice $20,000 $22,800 $20,500 $22,500 None of the other alternatives are correct Review the information in the chart below for Company X, Y, and Z and determine the values for the missing figures. Beginning inventory Inventory produced Inventory available Inventory sold Ending inventory X 8,000 2 14,000 26,000 57,000 ? ? 89,000 17,000 27,000 ? ? 12,000 15,000 Multiple Choice O Company X: Inventory available is $22,000, ending inventory is $5,000. Company 2: Beginning inventory is $13,000. Available inventory is $39,000. Company Y: Beginning inventory is $32,000, Inventory sold is $74,000 Company Y: Inventory available is $22,000, ending inventory is $5,000. Company X: Beginning inventory is $13,000. Available inventory sold is $74,000 $39,000. Company Z: Beginning inventory is $32,000, Inventory O Company X: Inventory available is $22,200, ending Inventory sold is $74,000 $5,000. Company Y. Beginning inventory is $13,000. Available inventory is $39,000. Company Z: Beginning inventory is $32,000, Inventory 0 Company X: Inventory available is $22,200, ending inventory is $5,000. Company sold is $74,400 Beginning inventory is $13,000. Available inventory is $39,000. Company Z: Beginning inventory is $32,000, Inventory O Company Inventory available is $22,000, ending inventory is $5,000. Company Y: Beginning inventory is $13,000. Available inventory is $39,000. Company Z: Beginning inventory is $32,000, Inventory sold is $74,000