Question

SCIENCE DEGREE IN HEALTH ADMIN GREE PLAN-TOTAL Ce Use the following information to answer the following questions. beginning The Boxwood Company sells blankets for $60 each. The Following was takes from the inventory records during May. The company had no inventory on May1. 19. Units 5 3 Cost Product Z Date $30 Purchase Sale Purchase Sale Sale Purchase May 3 May 10 May 17 May 20 May 23 May 30 10 $34 6 3 10 $40 16. Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the U inventory cost methods A. $1960 B. $2040 C. $2400 D. $1240 17. Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the FIR inventory cost method. A. $2500 B. $1800 C. $1960 D. $2040 18. Assuming that the company uses the perpetual inventory system, determine the ending inventory value for the month of May using the FIFO inventory cost method. A. $4940 B. $5020 C. $4220 D. $5200 142 Page

Answer 1

Solution Question 16. Cost of merchandise sold for sale of May 20 using the LIFO inventory cost method = $204 (See WN-2) Question 17. Cost of merchandise sold for sale of May 20 using the FIFO inventory cost method = $60+ $136 = $196 (See WN-1) Question 18. Ending inventory value for the month of May using the FIFO inventory cost method = $502 (See WN-1) WN-1: First-in, first-out (FIFO) Method Date Purchases Quantity Unit Cost 5 $ 30.00 Cost of Goods sold Quantity Unit Cost Total cost Total cost $ 150.00 May 3 May 10 May 17 3 $ 30.00 $ 90.00 Inventory on Hand Quantity Unit Cost Total cost 5 $ 30.00 $ 150.00 2 $ 30.00 $ 60.00 2 $ 30.00 $ 60.00 10 $ 34.00 $ 340.00 6 $ 34.00 $ 204.00 10 $ 34.00 $ 340.00 May 20 2 $ 4 $ 3 $ 30.00 34.00 34.00 $ $ $ 60.00 136.00 102.00 May 23 3 $ 34.00 $ 102.00 May 30 10 $ 40.00 $ 400.00 3 $ 10 $ 13 34.00 $ 40.00 $ I $ 102.00 400.00 502.00 Totals $ 890.00 $ 388.00 First-in, first-out (FIFO) Method Ending inventory cost of goods sold $ $ 502.00 388.00

WN-2: Last-in, first-out (LIFO Method Date Purchases Quantity Unit Cost Total cost 5 $ 30.00 $ 150.00 May 3 May 10 May 17 10$ 34.00 $ 340.00 May 20 Cost of Goods sold Inventory on Hand Quantity Unit Cost Total cost | Quantity Unit Cost | Total cost 5 $ 30.00 $ 150.00 3 $ 30.00 $ 90.00 2 $ 30.00 $ 60.00 2 $ 30.00 $ 60.00 10 $ 34.00 $ 340.00 $ 34.00 $ 204.00 2 $ 30.00 $ 60.00 34.00 $ 136.00 $ 34.00 $ 102.00 2 $ 30.00 $ 60.00 1 $ 34.00 $ 34.00 2 $ 30.00 $ 60.00 1 $ 34.00 $ 34.00 10 $ 40.00 $ 400.00 1 2 $ 396.00 $ 494.00 May 23 May 30 10 $ 40.00 $ 400.00 Totals 251 $ 890. 00 Last-in, first-out (LIFO) Method Ending inventory cost of goods sold $ $ 494.00 396.00 Note: In the given questions, under all the options (A, B, C, D), the figures are incorrectly mentioned with additional zero at the right, which converts the value from hundreds to thousands. Thus please omit the right side one additonal zero to correlate the answers with the given options.