Question

23. At May 1,2017, Heineken Company had beginning inventory consisting of 300 units with a unit cost of $7. During May, the company purchased inventory as follows 600 units at 57 900 units at 5 The company sold 1,500 units during the month for $12 per unit. Heincken uses the averape cost method. Heineken's gross peofit for the month of May is A) 56,750 B) $11,250 C) $18,000 D) $13,500 -24. In a period of rising prices, which of the following inventory methods prealy results in the lowest net income figure? A) Average cost method B) LIFO method C) FIFO method D) Need more information to answer 一25. Nelson Corporation sells three different products. The following information is available on December 31 Item Market value per un 300 $4.00 1.50 3.00 When applying the lower of cost or market rule so each item, what will Nelsoe's sotal ending inventory balance be? A) $7,950 B) $6,600 C) $6,450 D) $6,900 26, Ina perpetual inventory system A) B) C) D) FIFOcost of goods sold will be the same as in a periodic inventory system average costs are based entirely on unit cost simple avenges. a new average is computed under the average cost method after each sale LIFO oost of goods sold will be the same as in a periodic invenocey system 27. Classic Floors has the Sollowing inventory data: July I Beginning inventory 5 Purchases 14 Sale 21 Purchases 30 Sale 30 units at $6.00 120 units at $6.60 80 units 60 units a $7.20 56 units Assuming that a perpetual inventory system is used, what is the valae of ending nventory on a LIFO basis for July? A) $708.00 B) $1,404.00 C) $931 20 D) $472.80
23-27

Answer 1