Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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.