XYZ Company purchased its salable product in the current year as follows:

Jan. 1	Beginning inventory	140 units @ RO 6.00 = RO 840
Mar.7	Purchase	300 units @ RO 5.60 = 1,680
July 28	Purchase	550 units @ RO 5.00 = 2,750
Oct. 3	Purchase	350 units @ RO 4.60 = 1,610
Dec.19	Purchase	50 units @ RO 4.10 = 205
	Total	1,390 units

XYZ Company resold its product at RO 15 per unit on the following dates:

Jan. 10	100 units
Mar. 15	225 units
Oct. 5	700 units
Total	1,025 units

Answer the following MCQs using FIFO, Weighted average method and Specific Identification method ( Ending inventory consist of 365 units; 315 from the July 28 purchase and 50 units from the December 19 purchase in case of specific identification method)

Question 11

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Under periodic system, the cost of ending inventory at the end of the accounting period using FIFO method is:

a.

RO 205

b.

None of the given options

c.

RO 1,654

d.

RO 1,449

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Question 12

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Using FIFO method under perpetual system, the gross profit at the end of the accounting period is:

a.

RO 10,070

b.

None of the given options

c.

RO 10,155

d.

RO 9,944

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Question 13

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The specific identification method of inventory valuation is based on the

a.

Actual cost of each item of merchandise

b.

Average cost of each item of merchandise.

c.

Latest cost of each item of merchandise

d.

Earliest cost of each item of merchandise

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Question 14

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The gross profit method of determining ending inventory cost

a.

Can be used without taking a physical count of merchandise

b.

Provides accurate information about the number of units in inventory.

c.

Requires that a firm keep inventory and purchases data at retail value as well as at cost.

d.

Requires that the inventory be classified into groups of items of about the same rate of mark on.

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Question 15

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The total sales revenue during the accounting period:

a.

None of the given options.

b.

RO 15,375

c.

RO 10,555

d.

RO 15,220