Question

please help me with my homework and show how you got the answer.

2) Inventory records for Dunbar Incorporated revealed the following: Date Apr. 1 Apr. 20 Transaction Beginning inventory Purchase Number of Units 500 400 Unit Cost| $2.40 2.50 Dunbar sold 700 units of inventory during the month. Ending inventory assuming LIFO would be: A) S490. B) $480 C) $470. D) $500. 3) The following events pertain to Jasper Corporation: May 1 Jasper purchased office supplies of $3,000 on account. May 5 The office supplies were shipped to Jasper. May 8 Jasper used these office supplies for a one-time event. May 9 Jasper paid $3,000 cash for the office supplies purchased on May 1. Using cash-basis accounting, on which date should Jasper record supplies expense? A) May 9. B) May 8. D) May 5. C) May 1.

Answer 1

Answers

• Answer #2
  Ending units = 500 + 400 – 700 = 200 units
  Cost of ending inventory as per LIFO = 200 units at $ 2.40 beginning units rate = $ 480
  Correct Answer = Option ‘B’ $ 480
• Answer #3
  Under cash basis, expenses and revenues are recorded when expenses are paid in cash and revenues are earned in Cash.
  Hence,
  correcy Answer = Option ‘A’ on May 9 $ 3000 is paid for Supplies and expense should be recognised on that date.