Use the following inventory information for the month of May to answer questions 4 through 7:

May 1 Beginning inventory 30 units @ $12

7 Purchase 50 units @ $15

22 Purchase 20 units @ $18

Units sold in May: 65 units

4. Assuming that a periodic inventory system is used, what is ENDING INVENTORY under the average cost method?

a. $500.00 c. $514.50

b. $498.67 d. $588.00

5. Assuming that a periodic inventory system is used, what is COST OF GOODS SOLD on a FIFO basis?

a. $1,320.00 c. $1,275.00

b. $1,035.00 d. $885.00

6. Assuming that a periodic inventory system is used, what is the ENDING INVENTORY on a LIFO basis?

a. $675.00 c. $585.00

b. $435.00 d. $515.00

7. Assume that of the 65 units sold, 15 of the units were sold on May 5 and the other 50 units were sold on May 15. If the company were to use a perpetual inventory system, what would be the COST OF GOODS SOLD on a LIFO basis?

a. $930.00 c. $885.00

b. $1,035.00 d. $1,275.00

8. Assuming that prices are rising, which method will result in the lowest net income?

a. First-in, first-out b. Weighted Average c. Last-in, first-out

9. Johnson Co. had sales during the most recent accounting period of $100,000. The cost of goods available for sale during this period was $96,000, and the retail selling price for these same goods was $160,000. What is the estimated cost of ending inventory using the retail method? a. $25,600 c. $36,000 b. $56,000 d. $64,000

10. Gledhill Products had net sales of $500,000 during the year. Their cost of goods available for sale during the year was $400,000. If the companys products have an average gross profit of 45 percent, calculate the estimated cost of ending inventory, using the gross profit method. a. $525,000 c. $ 75,000 b. $125,000 d. $100,000