1.
Effie Company uses a periodic inventory system. Details for theinventory account for the month of January, 2013 are asfollows:
Balance, 1/1/13 | 200 | $5.00 | $1,000 |
Purchase, 1/15/13 | 100 | 5.30 | 530 |
Purchase, 1/28/13 | 100 | 5.50 | 550 |
An end of the month (1/31/13) inventory showed that 140 units wereon hand. If the company uses LIFO, what is the value of the endinginventory?
| A. | $742 |
| B. | $728 |
| C. | $762 |
| D. | $700 2. A company just starting business made the following fourinventory purchases in June: June | 1 | | 150 units | $ 390 | June | 10 | | 200 units | 585 | June | 15 | | 200 units | 630 | June | 28 | | 150 units | 510 | | | | | $2,115 |
A physical count of merchandise inventory on June 30 reveals thatthere are 200 units on hand. Using the LIFO inventory method, thevalue of the ending inventory on June 30 is
| A. | $668. | | B. | $536. | | C. | $1,447. | | D. | $1,564. 3. Romanoff Industries had the following inventory transactionsoccur during 2013: 2/1/13 | Purchase | 18 | $45 | 3/14/13 | Purchase | 31 | $47 | 5/1/13 | Purchase | 22 | $49 |
The company sold 50 units at $70 each and has a tax rate of 30%.Assuming that a periodic inventory system is used, what is thecompany's after-tax income using FIFO? (rounded to wholedollars)
| A. | $1,184 | | B. | $1,106 | | C. | $774 | | D. | $829 |
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