Question Details

Sawyer Company uses the perpetual inventory system 


1.	A new average cost is computed each time a purchase is made in the
a.	average-cost method.
b.	moving-average cost method.
c.	weighted-average cost method.
d.	all of these methods.


2.	When valuing ending inventory under a perpetual inventory system, the
a.	valuation using the average-cost assumption is the same as the valuation using the average-cost assumption under the periodic inventory system.
b.	moving average requires that a new average be computed after every sale.
c.	valuation using the FIFO assumption is the same as under the periodic inventory system.
d.	last units purchased during the period using the FIFO assumption are allocated to the cost of goods sold when units are sold.


3.	Sawyer Company uses the perpetual inventory system and the moving-average method to value inventories. On August 1, there were 10,000 units valued at $40,000 in the beginning inventory. On August 10, 20,000 units were purchased for $8 per unit. On August 15, 24,000 units were sold for $16 per unit. The amount charged to cost of goods sold on August 15 was
a.	$40,000.
b.	$160,000.
c.	$192,000.
d.	$144,000.


Use the following for questions 4 and 5.

	Tatsoi Company- purchase and sales transactions for the month of May were as follows:

				Purchases				     Sales			
		May 1 (beg. balance)	500@ ¥300		May 2		300@ ¥600
		       7		         1,500@   320		      14	         1,200@   600
		     22			500@   330		      28		500@   650

4.	Assuming that Tatsoi keeps perpetual inventory records, the ending inventory on a FIFO basis is
a.	¥150,000.
b.	¥156,000.
c.	¥165,000.
d.	¥630,000.


5.	Assuming that the company keeps perpetual inventory records, Tatsoi- cost of goods sold for the month of May on a LIFO basis is
a.	¥156,000.
b.	¥639,000.
c.	¥795,000.
d.	¥1,449,000.




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