1. Smith Company had the following purchases and inventorylevels during September. Use this data to calculate the cost ofgoods sold expense using the FIFO method.
September 1 | Beginning Inventory | 15 units at $20 each |
September 10 | Purchase | 20 units at $25 each |
September 20 | Purchase | 25 units at $28 each |
September 30 | Ending Inventory | 30 units |
a) $825
b) $750
c) 675
d) 600
2) Refer to the data in the previous question. What is the valueof the ending inventory on the Balance Sheet at September 30?
a) $825
b) 750
c) 675
d) 600
3) Refer to the data for Smith Company above. What is the valueof the inventory on the September 30 balance sheet if the companyuses the average cost inventory cost flow method?
a) $825
b) 750
c) 675
d) 600
4) Assume Smith Company sells its inventory for $50 per unit. Ifthe company uses LIFO and has cost of goods sold expense of $825,what is the gross profit margin?
a) $825
b) 750
c) 675
d) 600
