Use the following information to answers questions 10 to 16: Whitby Inc. is a wholesaler that uses a perpetual inventory system. The company's accounting records provided the following transactions for Product B during the fiscal year ended on December 31, 2020, Date Transactions Units Unit Cost Sale Price March 5 Purchase 19,000 $9 June 15 Sale 10,000 $27 September 19 Purchase 8,000 11 November 20 Sale 16,000 30 Additional information: The beginning inventory consisted of 7,000 units at a total cost of $56,000 . All sales are made on account with credit terms, 2/10,n/30 Customers who purchased 10,000 units on November 20 paid the amount due within the discount period. Al other customers paic their accounts receivable after the discount period. At the start of each question below, we indicate whether the First-in, First-out (FIFO) method or the Weighted Average Cost (WAC) method is used 10 of 20 (FIFO) The cost of ending inventory at December 31, 2020 is: O A $11,000 OB. $88,000 OC. $80,000 OD. $10,000 Unsure Il of 20 (FIFO) The cost of sales for 2020 is: O A S248,000 OB. $235,000 OC. $227.000 OD. $304,000 Unsure 12 of 2 (FIFO) The gross profit percentage for 2020 is: OA 69.49% OB 69.73% OC. 68.41% OD. 59.14% O E. None of the other percentages Unsure 13 of 20 (FIFO) Assume for this question only that the cost of sales is $240,000. In that case, the inventory turnover ratio for 2020 would equal: OA 3.33 OB 2.45 OC. 3.53 OD. 43.63 O E. None of the other ratios Unsure 2 (WAC) The average cost per unit of the 10,000 units sold on June 15 is: Marks O A $10 OB. $9.33 OC. $8.50 OD. $8.73 10 2 Marks If Whitby used a periodic inventory system instead of a perpetual system, which of the following statement would be correct? OA. If the FIFO method is used, the cost of sales under the periodic system would be different from the cost of sales under the perpetual system. o B. If the WAC method is used the cost of ending inventory at December 31, 2020 under the periodic system would be smaller than the cost of ending inventory under the perpetual system. OC. There is a need for a physical inventory count if the periodic system is used, but that is not necessary if the perpetual system is used. OD. Both inventory control systems are equally efficient in keeping track of inventory quantities and costs throughout the accounting period