USE THIS INFORMATION FOR THE NEXT THREE PROBLEMS PLEASE: The Boxwood Company sells blankets for $60 each. They have no beginning inventory. The following was taken from the inventory records during May: Date Product Z Units Cost per Unit May 3 Purchase 5 $30 May 10 Sale 3 May 17 Purchase 10 $34 May 20 Sale 6 May 23 Sale 3 May 30 Purchase 10 $40 9. Assuming the company uses a Perpetual Inventory system, what is the Cost of Goods Sold for the sale of MAY 20 using the LIFO inventory cost method? A. $196 B. $204 C. $240 D. $124 10. Assuming instead that the company uses the FIFO inventory cost method, again using a perpetual inventory system, what is the amount of its Ending Inventory at the end of May? A. $264 B. $502 C. $400 D. $790 11. Now assume that Boxwood uses a PERIODIC inventory system based on the Average Cost assumption. Their ending inventory at May 30 would be priced at what value, assuming the purchases and sales above are all accurate and there are no shortages or missing items? A. $462.80 B. $450.66 C. $520.50 D. $390.75

Please assume these facts for the following two questions, assuming that the Seller uses a perpetual inventory system:

• Seller sells merchandise to Buyer on account for $46,000. The payment terms are 2/15, Net 45, and freight terms are FOB Shipping Point.
• The COST of the goods sold is $38,500.
• Five days later (before payment) the Seller issued a Credit Memo for Returned Goods of $1500 that originally cost $950.
• The Buyer paid the invoice within the discount period.

13. In order to record the initial sale, the Seller must make:

1. TWO entries, one for the initial sale of $46,000, and one to pay the trucker for the freight
2. ONE entry, to record the Cost of goods Sold of $38,500
3. TWO entries, one for the Sale at $46,000, and one for the related cost of Goods Sold at $38,500
4. ONE entry, because we only update Inventory when we do a physical count at the end of the month because we have a perpetual system

14. The Buyer pays the Seller within the 15-day discount period, allowing for the returned merchandise. The amount of the payment that the seller receives is (show your math!):

1. $46,000
2. $43,610
3. $44,500
4. $45,110

15. If your revenue accounts show $250,000 in total, and your expense accounts show $180,000 in total, then in the order in which we learned them in chapter 4, the THIRD of your closing entries would be to:

1. Debit the Owners Capital Account, and Credit the Income Summary, for $70,000
2. Debit the Capital Account, and Credit the Owners Drawing Account, for $70,000
3. Debit the Income Summary, and Credit the Owners Drawing Account, for $70,000
4. Debit the Income Summary, and Credit the Owners Capital Account, for $70,000