Unit 5 Chapter 5 Assignment Please mark the correct answer by deleting the wrong answers. One answer is correct for each problem. 1. In the month of January a car dealership bought its vehicles for $100,000 and sold them for $145,000. It pays its employees $20,000 for the month. What is the gross profit for January? $45,000 b. $25.000 S100,000 d $145,000 2. An investment company purchased land June 1, 2019 for $100,000. At the end 2020, the land is sold for $220,000. It incurred operating expenses of $80,000. What is the net income recorded for the year ended December 31, 20202 a $220,000 b.$100,000 c. $120,000 d. S40,000 3. Bella Inc. purchased $12,500 worth of merchandise on June 1, 2019 on credit. After inspecting the inventory it determined that 20% of the items were defective. It returned these goods to the supplier. Assume a perpetual inventory system is used, a physical count verifies the amount of goods, and no other transactions take place, what is balance reported as inventory on the balance sheet? $12.500 S10,000 $2,500 SI5.000 4. Beanie Inc. purchases on credit and receives $8,500 worth of merchandise on June 1, 2019. After inspecting the inventory, management determines that 10% of the items are defective. These are returned to the supplier. The terms with the supplier are 2/10, n30. If Beanie pays the invoice on June 15, what is the amount paid? 57,497 $7.650 58,330 4 $6,885 Please mark the correct answer by deleting the wrong answers. One answer is correct for each problem, be sure to complete all 4 questions. 1. Assume a company sold the following items in January for $10 each: 3 items on January 3 with a unit cost of 5 5 items on January 15 with a unit cost of $5.50 8 items on January 22 with a unit cost of $6.50 What is the cost of goods sold expense for January assuming the specific identification method is used? 2.594.50 S90.67 S104 $65.50 2. Assume a company sold the following items in January for $10 each: 1 item on January 3 with a unit cost of $5 1 item on January 15 with a unit cost of $5.50 1 item on January 22 with a unit cost of $6.50 What is the cost per unit for January assuming the weighted average method? - 55.67 $5.50 SS $6.50 3. Ellie Inc. sold 6 similar items in February for S15 each. The company started with 3 items in inventory that cost $5. The following purchases were made during February: 2 items were purchased on February 3 with a unit cost of $8 1 item on February 15 with a unit cost of $8.50 4 items on February 22 with a unit cost of $7.50 What is the cost of goods sold using the FIFO method? $90 S47 $43.50 39.50 4. Linden started the month with 10 items in inventory with a total cost of $3,000. On February 21 it purchased 10 items with a total cost of $4,000. If the company uses LIFO, what is the cost of goods sold if 11 items were sold in February? $4,000 $3,850 $3,500 4 $4,300
