Question Details

What is the cost of goods sold using the FIFO method 


1.	Nichols Company had 500 units of “Dink” in its inventory at a cost of $5 each. It purchased, for $2,400, 300 more units of “Dink”. Nichols then sold 600 units at a selling price of $10 each, resulting in a gross profit of $2,700. The cost flow assumption used by Kingman
a.	is FIFO.
b.	is LIFO.
c.	is weighted average.
d.	cannot be determined from the information given.

	2.	June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 10 units that cost $20 per unit. During the current month, the company purchased 60 units at $20 each. Sales during the month totaled 45 units for $43 each. What is the number of units in the ending inventory?
a.	10 units.
b.	15 units.
c.	25 units.
d.	70 units.

	3.	June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 10 units that cost $20 per unit. During the current month, the company purchased 60 units at $20 each. Sales during the month totaled 45 units for $43 each. What is the cost of goods sold using the FIFO method ?
a.	$200.
b.	$900.
c.	$1,200.
d.	$1,935.

	4.	Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $12 each. During the month, the company made two purchases: 500 units at $13 each and 2,000 units at $13.50 each. Checkers also sold 2,150 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month?
a.	$27,843.
b.	$28,950.
c.	$26,975.
d.	$27,950.

	5.	Chess Top uses the periodic inventory system. For the current month, the beginning inventory consisted of 200 units that cost $65 each. During the month, the company made two purchases: 300 units at $68 each and 150 units at $70 each. Chess Top also sold 500 units during the month. Using the average cost method, what is the amount of ending inventory?
a.	$10,500.
b.	$33,770.
c.	$33,400.
d.	$10,131.




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