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a) FOBdestination b) CODdestination c) FOB shippingpoint d) COD shippingpoint 4.

ID: 2458040 • Letter: A

Question

           a)         FOBdestination

           b)         CODdestination

           c)         FOB shippingpoint

           d)         COD shippingpoint

4.    Consigned merchandise should beincluded in the ending inventory of the consignee.

                       True                            False

5.         On 02/01/x1West Company sold $5,500 of merchandise, on account to a customer,that cost $2,940, terms 3/15, n /30. If the customer paid forthe merchandise within the discount period, what is thejournal entry required for West co on the date of sale to thecustomer (perpetual inventory system):

02/01/x1

6 Continued from #5 On 02/10/x1 the customerpaid for the merchandise within the discount period, whatis the journal entry required for West Co. on the date the customerpays (perpetual inventory system):

a.                  First-in, first out

b.                 Last-in, last out

c.                  Weighted-average

d.                 Cost-plus-profit

e.                  Specific identification

                       True                            False

9. The method of inventory computation that you chose willhave an impact on the net income that is computed on the incomestatement.

                       True                            False

10-12 The inventory transactions are as follows:

                                            Units             Unit cost        ExtendedValue

         Beginninginventory        300                  $20                  $6,000

         Purchases2-10-2002        400                  $22                   8,800

         Purchases2-20-2002        200                  $23                   4,600

        Available                          900                                        $19,400

        Sales       2-15-2002        500                                   

         EndingInventory             400

10.   Using the information outlined above, what isthe value of the ending inventory for a perpetual inventory systemusing the FIFO inventory valuation?

A.        $8,000.00

B.        $8,200.00

C.        $8,600.00

D.        $8,828.55

E.         $9,000.00

11. Using the information outlined above, what is the valueof the ending inventory for a perpetual inventory system using theLIFO inventory valuation?

A.        $8,000.00

B.        $8,200.00

C.        $8,600.00

D.        $8,828.55

E.         $9,000.00

Explanation / Answer

Please take your time to rate the answers ! 1/10/x1 2.   Accountspayable            3,000               Salesdiscounts                            60                Cash                                      2,940 ( 3,000 * 2% discount = $ 60 ) 3. C     FOB shipping point.