1.
Eneri Company's inventory records show the following data:
Inventory, January 1 | | 5,000 | $9.20 |
Purchases: | June 18 | 4,500 | 8.00 |
| November 8 | 3,000 | 7.00 |
A physical inventory on December 31 shows 2,000 units on hand.Eneri sells the units for $13 each. The company has an effectivetax rate of 20%. Eneri uses the periodic inventory method.
Under the FIFO method, the December 31 inventory is valued at
| A. | $16,133. |
| B. | $14,000. |
| C. | $16,480. |
| D. | $18,400. 2. Priscilla has the following inventory information. July | 1 | | Beginning Inventory | 20 units at $19 | $ 380 | | 7 | | Purchases | 70 units at $20 | 1,400 | | 22 | | Purchases | 10 units at $23 | 230 |
A physical count of merchandise inventory on July 31 reveals thatthere are 30 units on hand. Using the FIFO inventory method, theamount allocated to cost of goods sold for July is
| A. | $1,380. | | B. | $1,390. | | C. | $1,407. | | D. | $1,430. 3. At May 1, 2013, Kibbee Company had beginning inventoryconsisting of 100 units with a unit cost of $7. During May, thecompany purchased inventory as follows:
400 units at $7
300 units at $8
The company sold 500 units during the month for $12 per unit.Kibbee uses the average cost method. The average cost per unit forMay is | A. | $7.500. | | B. | $7.000. | | C. | $7.375. | | D. | $8.000. |
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