Question Details

Holliday Company's inventory records 


	1.	Graham Company uses a periodic inventory system. Details for the inventory account for the month of January, 2011 are as follows:
	Units	Per unit price	Total
Balance, 1/1/11	300	$5.00	$1,500
Purchase, 1/15/11	150	5.30	795
Purchase, 1/28/11	150	5.50	825

An end of the month (1/31/11) inventory showed that 180 units were on hand. If the company uses FIFO, what is the value of the ending inventory?
a.	$780
b.	$900
c.	$984
d.	$2,136

	2.	Graham Company uses a periodic inventory system. Details for the inventory account for the month of January, 2011 are as follows:
	Units	Per unit price	Total
Balance, 1/1/11	300	$5.00	$1,500
Purchase, 1/15/11	150	5.30	795
Purchase, 1/28/11	150	5.50	825

An end of the month (1/31/11) inventory showed that 180 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?
a.	$2,064
b.	$2,136
c.	$4,200
d.	$4,500


	3.	Holliday Company's inventory records show the following data:
		Units	Unit Cost
Inventory, January 1		5,000	₤4.50
Purchases:June 18		4,500	4.00
	November 8	3,000	3.50

A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for ₤6 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. 
Under the FIFO method, the December 31 inventory is valued at
a.	₤7,000.
b.	₤7,250.
c.	₤7,500.
d.	₤9,000.


	4.	Holliday Company's inventory records show the following data:
		Units	Unit Cost
Inventory, January 1		5,000	₤4.50
Purchases:June 18		4,500	4.00
	November 8	3,000	3.50

A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for ₤6 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. What is the cost of goods available for sale?
a.	₤10,500
b.	₤18,000
c.	₤22,500
d.	₤51,000


	5.	Holliday Company's inventory records show the following data:
		Units	Unit Cost
Inventory, January 1		5,000	₤4.50
Purchases:	June 18	4,500	4.00
	November 8	3,000	3.50

A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for ₤6 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. The weighted-average cost per unit is
a.	₤3.75.
b.	₤4.00.
c.	₤4.08.
d.	₤4.38.





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