Question Details

Lee Industries had the following inventory transactions 


1.	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. Ending inventory under FIFO is
a.	€329.
b.	€634.
c.	€316.
d.	€647.
	
2.	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. Assuming that the specific identification method is used and that ending inventory consists of 15 units from each of the three purchases and 5 units from the November 1 inventory, cost of goods sold is
a.	€320.
b.	€643.
c.	€640.
d.	€627.


	3.	Lee Industries had the following inventory transactions occur during 2011:
		Units	Cost/unit
2/1/11	Purchase	54	$45
3/14/11	Purchase	93	$47
5/1/11	Purchase	66	$49
The company sold 153 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company- gross profit using FIFO? (rounded to whole dollars)
a.	$7,323
b.	$7,095
c.	$2,544
d.	$2,316

4.	Lee Industries had the following inventory transactions occur during 2011:
		Units	Cost/unit
2/1/11	Purchase	54	$45
3/14/11	Purchase	93	$47
5/1/11	Purchase	66	$49

The company sold 153 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company- after-tax income using FIFO? (rounded to whole dollars)
a.	$2,316
b.	$2,544
c.	$1,781
d.	$1,620

5.	Companies adopt different cost flow methods for each of the following reasons except
a.	statement of financial position effects.
b.	cash flow effects.
c.	income statements effects.
d.	tax effects.





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