41) Calculate the cost of goods sold under each of the following methods given the information below about purchases and sales during the year. Assume a periodic inventory system.
April1 Beginning inventory20 units @ $30
11 Purchases70 units @ $32
21 Purchases50 units @ $35
Sales for April: 115 units
a) ________ FIFO
b) ________ LIFO
c) ________ Weighted-average
42) The ________ holds the merchandise of another business to be sold.
43) If merchandise is purchased ________, the buyer becomes the owner when the merchandise is placed on the carrier.
44) Items that are very similar, such as canned goods in a grocery store would be costed using the ________ system of inventory valuation.
15.4 Learning Objective 15-4
1) A method that uses average gross profit rate and net sales to compute inventory is:
A) the retail method.
B) the LIFO.
C) the weighted-average method.
D) None of these answers are correct.
2) Chewy Candy has a beginning inventory of $1,000. June purchases were $3,000, and retail sales were $5,000. The store has a normal gross profit of 50%. What is the June 30 estimated ending inventory at cost under the gross profit method?
A) $2,100
B) $2,000
C) $1,700
D) $1,500
3) Chewy Candy has a beginning inventory of $1,000 with a retail value of $1,800. June purchases were $3,000, with a retail value of $4,700 and retail sales were $4,200.What is the June 30 estimated ending inventory at cost under the retail method?
A) $351
B) $949
C) $4,161
D) $1,416
4) St. Paul Corporation has a normal gross profit of 45%. The current year's beginning inventory was $2,500, purchases were $9,000, and retail sales were $15,000. The estimated ending inventory under the gross profit method is:
A) $4,750.
B) $3,250.
C) $8,220.
D) $4,050.
5) St. Paul Corporation had a beginning inventory of $2,500 which would retail for $4,000. They made $9,000 in purchases which would retail at $14,400. The sales for the period were $15,000. What is the estimated cost of ending inventory under the retail inventory method?
A) $1,500
B) $3,400
C) $4,000
D) $2,125
