ID: A 35. The fol lowing lots of a particular commodity were available for sale
ID: 2339287 • Letter: I
Question
ID: A 35. The fol lowing lots of a particular commodity were available for sale during the year Beginning inventory First purchase Second purchase 10 units at $50 25 units at $55 30 units at $60 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year What is the amount of inventory at the end of the year according to the first-in, first-out method? a. $1,250 b. $1,150 c. $1,275 d. $1,050 36. The following lots of a particular commodity were available for sale during the year Beginning inventory First purchase Second purchase Third purchase 10 units at $30 25 units at $32 30 units at $34 10 units at S35 firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of th e year according to the last-in, first-out method? a. $655 b. $620 c. $690 d. $659 37. If the cost of an item of inventory is $50 and the current replacement cost is $$7, the amount included in inventory according to the lower of cost or market is a. $7 b. $50 c. $57 d. $107 On the basis of the following data, retail method? what is the estimated cost of the merchandise inventory on May 31 by the 38. May1 May 1-31 May 1-31 Merchandise Inventory Purchases (net) Sales (net) Cost Retail $125,000 $166,667 235,000 313,333 230,000 a. $250,000 b. $360,000 c. $172,500 d. $187,500Explanation / Answer
35.
Correct answer is c. $1,275
Cost of ending inventory = (15 units * $65) + (5 units*$60) = $1,275
36.
Correct answer is b. $620
Cost of ending inventory = (10 units * $30) + (10 units*$32) = $300 + $320 = $620
37.
Correct answer is b. $50