Quick Start Company just starting business made the following four inventory pur
ID: 2374068 • Letter: Q
Question
Quick Start Company just starting business made the following four inventory purchases in June:
Date Total units Total amount
June 1 150 $ 780
June 10 200 1,170
June 15 200 1,260
June 28 150 990
A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand.
33. Using the LIFO inventory method, the value of the ending inventory on June 30 is
a. $1,365
b. $1,620
c. $2,580
d. $2,835
34. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is
a. $1,620
b. $2,290
c. $2,580
d. $2,835
35. Using the average cost method, the amount allocated to the ending inventory on June 30 is
a. $4,200
b. $2,700
c. $1,150
d. $1,500
36. Which of the following inventory costing method uses actual instead of estimate cost?
a. FIFO method
b. LIFO method
c. Average cost method
d. Specific identification method
Explanation / Answer
similar problem will help you
A company just starting business made the following four inventory purchases in June:
June 1 150 units $390
June 10 200 units 585
June 15 200 units 630
June 28 150 units 495
$2,100
A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand.
15. Using the LIFO inventory method, the value of the ending inventory on June 30 is
A) $536. B) $653. C) $1,447. D) $1,564.
16. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is
A) $653. B) $1,272. C) $1,447. D) $1,564.
17. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
A) $2,100. B) $1,500. C) $575. D) $600.
answer: June 1 150 units $390 = $2.60 per unit
June 10 200 units 585 = $2.93 per unit
June 15 200 units 630 = $3.15 per unit
June 28 150 units 495 = $3.30 per unit
15. Using the LIFO inventory method, the value of the ending inventory on June 30 is
390 + (50 x 2.93) =
A) $536.
16. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is
390 + 585 + (150 x 3.15) =
C) $1,447.
17. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
2,100 / 700 units purchased = $3.00 per unit
200 x $3.00 =
D) $600.
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