Question Details

The value assigned to ending inventory if Niles uses LIFO is 


Use the following information for questions 1 and 2.
Winsor Co. records purchases at net amounts. On May 5 Winsor purchased merchandise on account, $16,000, terms 2/10, n/30. Winsor returned $1,200 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid.

	1.	The amount to be recorded as a purchase return is
a.	$1,080.
b.	$1,224.
c.	$1,200.
d.	$1,176.

	
2.	By how much should the account payable be adjusted on May 31?
a.	$0.
b.	$344.
c.	$320.
d.	$296.

Use the following information for questions 3 and 4.

The following information was available from the inventory records of Rich Company for January:
			   Units	 	Unit Cost		Total Cost
Balance at January 1	3,000	$9.77	$29,310
	Purchases:
		January 6	2,000	10.30	20,600
		January 26	2,700	10.71	28,917

	Sales:
		January 7	(2,500)
		January 31	(4,000)
Balance at January 31	  1,200

	3.	Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
a.	$12,606.
b.	$12,284.
c.	$12,312.
d.	$12,432.

	4.	Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?
a.	$12,606.
b.	$12,284.
c.	$12,312.
d.	$12,432.

Use the following information for questions 5 and 6.

Niles Co. has the following data related to an item of inventory:
Inventory, March 1	100 units @ $4.20
Purchase, March 7	350 units @ $4.40
Purchase, March 16	  70 units @ $4.50
Inventory, March 31	130 units

	5.	The value assigned to cost of goods sold if Niles uses FIFO is
a.	$579.
b.	$552.
c.	$1,723.
d.	$1,696.

 
6.	The value assigned to ending inventory if Niles uses LIFO is 
a.	$579.
b.	$552.
c.	$546.
d.	$585.




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