Question Details

Neighborly Industries has the following inventory 



1.	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. If the company uses FIFO, what is the gross profit for the period?
a.	₤1,000
b.	₤5,000
c.	₤10,500
d.	₤19,000

	2.	Unitech has the following inventory information.
July	1	Beginning Inventory	30 units at $19	$   570
	7	Purchases	105 units at $20	2,100
	22	Purchases	15 units at $22	     330
			$3,000

A physical count of merchandise inventory on July 31 reveals that there are 45 units on hand. Using the average-cost method, the value of ending inventory is
a.	$870.
b.	$900.
c.	$915.
d.	$930.


	3.	Unitech has the following inventory information.
July	1	Beginning Inventory	30 units at $19	$   570
	7	Purchases	105 units at $20	2,100
	22	Purchases	15 units at $22	     330
			$3,000

A physical count of merchandise inventory on July 31 reveals that there are 45 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for July is
a.	$870.
b.	$930.
c.	$2,070.
d.	$2,130.


	4.	Neighborly Industries has the following inventory information.
July	1	Beginning Inventory	20 units at $120
	5	Purchases	120 units at $112
	14	Sale	80 units
	21	Purchases	60 units at $115
	30	Sale	56 units

Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a FIFO basis?
a.	$7,328
b.	$7,348
c.	$15,392
d.	$15,412


	5.	Shandy Shutters has the following inventory information.
Nov.	1	Inventory	15 units @	€6.00
	8	Purchase	60 units @	€6.45
	17	Purchase	30 units @	€6.30
	25	Purchase	45 units @	€6.60

A physical count of merchandise inventory on November 30 reveals that there are 50 units on hand. Assume a periodic inventory system is used. Cost of goods sold under the average-cost method is
a.	€646.
b.	€642.
c.	€634.
d.	€600.




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