entory and cost of goods sold is called (A) PPs D) perpetunl, (E) weighted avera
ID: 2584291 • Letter: E
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entory and cost of goods sold is called (A) PPs D) perpetunl, (E) weighted average A method of allocating merchandise cost that assigns the purchased costs to the ending inventory shown in the ba (A) FIFO. (B) LIFO (C) weighted average (D) speciie 3. most lance sheet is call ed (E) periodic Use the following information to answer Questions 4, 5, a nd 6 ng March, Cee's Crafts Co. purchased bolts of specialty cloth. The company uses a periodic in system. Th e accounting records for the month showed the following information # of Unit Price Units 150 S 3,750.00 On hand at the start of the period Purchased during the period 525.00 First purchase Second purehase Third purchase 200 600 400 1,350 26.50 27.00 28,00 5,300.0 16.200.0 11,200.C Number of units available for sale On hand at the end of the period Number ofunits sold during the period 1,100 4. Using the LIFO method, the value of the inventory on hand at the end of the period would be (A) S6,400, (B) $6,750, (C) S7,000; (D) $29,450; (E) $30,050 S. Using the weighted-average method, the value of the inventory on hand at the end of the period would be (A) S6,400; (B) S6,750; (C) $7,000 (D) $29,450; (E) S30,050 Using the FIFO costing method, the value of the inventory on hand at the end of the period would be (A) S6,400, (B) S6,750, (C) S7,000, (D) $29,450, (E) $30,050 6 7. The accounting principle that allows inventory to be recorded at the lowest t is the (A) materiality principle; (B) business entity principle; (C) conservatism principle; (D) consistency principle; (E) perpetual principle. 17 Cagu ge l aamung All Rights Res red May not be sama, apaor dpl caled, or postal toa publicly noExplanation / Answer
Answer 4.
Number of units available for sale = 1,350
Number of unit in ending inventory = 250
Ending inventory will include 150 units of beginning inventory and 100 unit of 1st purchase
Ending inventory = 150 * $25.00 + 100 * $26.50
Ending inventory = $6,400
Answer 5.
Number of units available for sale = 1,350
Cost of units available for sale = $3,750 + $5,300 + $16,200 + $11,200
Cost of units available for sale = $36,450
Cost per Unit = Cost of units available for sale / Number of units available for sale
Cost per Unit = $36,450 / 1,350
Cost per Unit = $27.00
Number of unit in ending inventory = 250
Ending inventory = 250 * $27.00
Ending inventory = $6,750
Answer 6.
Number of units available for sale = 1,350
Number of unit in ending inventory = 250
Ending inventory will include 250 units of 3rd purchase
Ending inventory = 250 * $28.00
Ending inventory = $7,000
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