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June 1
3
7
15
22
$3.20
3.10
3.30
3.40
3.50
June 2
6
9
10
18
25
Sales
1,200 @
3,200 @
2,000 @
800 @
2,800 @
400 @
$5.50
5.50
5.50
6.00
6.00
6.00
Assuming that perpetual inventory records are kept in units only, the ending inventory on a
LIFO basis is
o
o
o
o
$8,220.
$8,320.
$8,940.
$8,580.
When the retailer gives a confirmation that the goods wont be returned
When the goods are sold on installment
When the payment for goods is received
When it can reasonably estimate the amount of returns
$580
$552
$584
$546
Goods that are sold, but payment is not required until the goods are sold.
Goods that are shipped, but title remains with the shipper.
Goods that have been segregated for shipment to a customer.
Goods that are shipped, but title transfers to the receiver.
Units
200
250
100
Unit Cost
$22
23
24
A physical count on January 31, 2014 shows 200 units of product A on hand. The cost of the
inventory at January 31, 2014 under the LIFO method is
o $4,250.
o $4,100.
Page 2 of 6
Purchase Date
12/7/14
12/11/14
12/15/14
Quantity
Purchased
2,000
10,000
7,000
Using the double-extension method, what is the price index for 2014 that should be
computed by Wise Company?
o
o
o
o
108.33%
109.59%
111.05%
220.51%
FIFO.
LIFO.
None of these choices are correct.
Average cost.
June 1
3
7
15
22
$3.20
3.10
3.30
3.40
3.50
June 2
6
9
10
18
25
Sales
1,200 @
3,200 @
2,000 @
800 @
2,800 @
400 @
$5.50
5.50
5.50
6.00
6.00
6.00
Assuming that perpetual inventory records are kept in dollars, the ending inventory on a
LIFO basis is
o
o
o
o
$8,580.
$8,220.
$8,940.
$8,320.
$97,500.
$87,500.
$125,000.
$90,000.
Average cost
Base stock
First-in, first-out
Last-in, first-out
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