3. Based on the information presented in 13 above and assuming that the periodic

Question

3. Based on the information presented in 13 above and assuming that the periodic inventory system is used, cost of goods sold under the average costing method would be: a. $133.20 b. $444.00 c. $310.80 d. $304.50 14. Using the facts in question 13, the cost of goods sold under First-in; first out (FIFO) method would be: a. $144.00 b. $300.00 c. $388.50 d. $444.00 15. Using the same facts in question 13, the ending inventory under the Last-in, First out (LIFO) costing method would be: a. $316. b. $444 C. $300 d. $128. The Lower of Cost rule can be applied to: a. b. c. d. e. 16. Individual inventory items Logical inventory categories The entire inventory All of the above Only a and b above. 17. A retail company has goods available for sale of $1,000,000 at retail and $600,000 at cost, and ending inventory of $100,000 at retail. What is the estimated cost of goods sold? a. $60,000 b. $100,000 C. $900,000 d. $540,000 18. Which of the following does not characterize all long-term assets? Used in operation of a business Possess physical substance Have a useful life of more than one year Are not for sale a. b. c. d. 19. Which of the following will not be included in the cost of land? a. b. c. The cost of paving the land for parking As assessment from the local government for installing a sewer The cost of razing a building on the land

Explanation / Answer

Ans 16 a) Individual Inventory Items.

Ans 17 c) $ 900000 .....Cost of good available for sale less closing stock = $ 1000000 - $ 100000 = $900000

Ans 18 d) Are not for Sale

Ans 19 b) As assessment from the local government for installing a server

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