Question Details

The cost of goods available for sale is allocated 



1.	A company just starting business made the following four inventory purchases in June:
June	1	150 units	¥   5,200
June	10	200 units	7,800
June	15	200 units	8,400
June	28	150 units	     6,600
			¥28,000

A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. 
The inventory method which results in the highest gross profit for June is
a.	the FIFO method.
b.	the specific identification method.
c.	the average-cost method.
d.	not determinable.

2.	A company purchased inventory as follows:
200 units at $10
300 units at $12
The average unit cost for inventory is
a.	$10.00.
b.	$11.00.
c.	$11.20.
d.	$12.00.

	3.	The cost of goods available for sale is allocated between
a.	beginning inventory and ending inventory.
b.	beginning inventory and cost of goods on hand.
c.	ending inventory and cost of goods sold.
d.	beginning inventory and cost of goods purchased.


4.	Ted's Used Cars uses the specific identification method of costing inventory. During March, Ted purchased three cars for $8,000, $10,000, and $13,000, respectively. During March, two cars are sold for $12,000 each. Ted determines that at March 31, the $13,000 car is still on hand. What is Ted- gross profit for March?
a.	$7,000.
b.	$6,000.
c.	$1,000.
d.	$11,000.


	5.	Of the following companies, which one would not likely employ the specific identification method for inventory costing?
a.	Music store specializing in organ sales
b.	Farm implement dealership
c.	Antique shop
d.	Hardware store





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