Question

company ng 4,000 13. Prairie Clinic purchased X-ray equipment the remainder to be paid later. The correct entry would be 10 000 paid 4.000 down, with A Equipment Cash 4,000 Cash Accounts Payable 4,000 6,000 Equipment C. Equipment Expense 10,000 Accounts Payable Cash 4,000 D. Equipment Accounts Payable 4.000 Cash 6,000 10,000 6,000 10,000 The inventory data for an item for November are: Nov. 1 4 10 17 30 Inventory Sold Purchased Sold Purchased 200 units at $19 100 units 300 at $20 200 units 100 units at $21 14. Using a perpetual system, what is the cost of the merchandise sold for November if the company uses LIFO? A $6100 B. $6000 C. $5900 D. $5800 The inventory data for an item for November are: Nov. 1 Inventory 4 Sold 10 Purchased 17 Sold 30 Purchased 200 units at $19 100 units 300 at $20 200 units 100 units at $21 15. Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO? A. $6100 B. $6000 C. $5900 D. 5800 141 Page

Answer 1

Question - 13 Answer: C Entry Debit Credit Eqipment expenses 10000| Accounts payable 6000 Cash 4000 Question - 14 Answer: C LIFO Method Cost of goods available for sale = (200 * 19 ) + (300*20) + (100*21) = $ 11900 Closing inventory = (100*21) + (100*20) + ( 100*19) = $ 6000 Cost of Goods sold = $ 11900 - $ 6000 = $ 5900 5 Question - 15 Answer: B FIFO Method Cost of goods available for sale = (200 * 19 ) + (300*20) + (100*21) = $ 11900 Closing inventory = (200*20) + ( 100*19) = $ 5900 Cost of Goods sold = $ 11900 - $ 5900 = $ 6000 Please provide feedback with UP VOTE