Question Details

Nolvo Company uses the periodic inventory 



Use the following information for questions 1-2.
Brocken Co. has the following data related to an item of inventory:
Inventory, May 1		1,000 units @ £4.20
Purchase, May 7		3,500 units @ £4.40
Purchase, May 16		700 units @ £4.50
Inventory, May 31		1,300 units

1.	The value assigned to cost of goods sold if Brocken uses average-cost is
a.	£17,062.
b.	£16,900.
c.	£16,961.
d.	£17,520.

	2.	The value assigned to cost of goods sold if Brocken uses FIFO is
a.	£16,900.
b.	£16,960.
c.	£17,069.
d.	£17,082.

	3.	Vestle Company uses the periodic inventory system. For January 2011, the beginning inventory consisted of 12,000 units that cost CHF12 each. During the month, the company made two purchases: 5,000 units at CHF13 each and 20,000 units at CHF13.50 each. Vestle sold 21,500 units during the month for CHF19.50 per unit. Using the average-cost method, what is the amount of cost of goods sold for the month of January 2011 (round per unit amount to two decimal places)?
a.	CHF278,425.
b.	CHF289,500.
c.	CHF269,750.
d.	CHF279,500.

	4.	Nolvo Company uses the periodic inventory system. For February 2011, the beginning inventory consisted of 100 units that cost CHF65 each. During the month, the company made two purchases: 400 units at CHF68 each and 150 units at $72 each. Nolvo sold 500 units during the month of February at CHF110 per unit. Using the average cost method, what is the amount of ending inventory at February 28, 2011?
a.	CHF10,800.
b.	CHF10,500.
c.	CHF10,269.
d.	CHF9,750.


5.	Kershaw Bookstore had 600 units on hand at January 1, costing €18 each. Purchases and sales during the month of January were as follows:
Date		Purchases		Sales
Jan.    14		450 @ €28
17	300 @ €20
25	300 @ €22
29	300 @ €32

Kershaw does not maintain perpetual inventory records. According to a physical count, 450 units were on hand at January 31.

The cost of the inventory at January 31, under the FIFO method is:
a.	€1,200.
b.	€8,100.
c.	€9,300.
d.	€9,600.





Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help