41 calculate the cost of goods sold under each of the following methods given the in 4303177

 

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