Use the following information to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May I. Cost $30 Units Product Z Date May 3 May 10 May 17 May 20 May 23 May 30 Sale $34 10 Sale Sale $40 10 35. Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for a $196 b $204 c $124 d. $240 36 Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method. a $520 b$494 c $422 d. $502 Current liabilities are those liabilities that a are due to be paid in 5 to 10 years b. are owed to the stockholders and will never be paid c. are due to be paid in more than one year d. will be paid in less than one year 37. If the revenues are correctly reported and the Gross Profit of a company is understated, what is the effect on Owner's Equity? 38. a. Understated b. Overstated c Correctly Stated d. None of the above 39. Equipment with a cost of $130,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? a. $33,000 b. $32,500 c $24,000 d. $35,750