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Vulcan Co. uses the perpetual inventory method

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Please see attached excel worksheet dealing with accounting questions.

23. Vulcan Co. uses the perpetual inventory method. The inventory records for Vulcan reflected the following:

1-Jan Beginning Inventory 300 Units @ 2.10
12-Jan First Purchase 400 Units @ 2.40
21-Jan Second Purchase 600 Units @ 2.50
31-Jan Sales 800 Units @ 5.00

Assuming that Vulcan uses a FIFO cost flow method, the cost of goods sold for January is
Answer
A $1590.00
B $1840.00
C $1740.00
D $1680.00

24. What was Vulcan's gross margin for the month of January assuming a FIFO cost flow method?

Answer
A $2160.00
B $2410.00
C $2260.00
D $2320.00

25. The inventory records for Hugo Co. reflect the following:

beginning inventory @ May 1 200 Units @ 1.00
First Purchase @ May 7 300 Units @ 1.10
Second Purchase @ May 17 500 Units @ 1.30
Sales @ May 31 900 units @ 2.00

Determine Hugo's cost of goods sold for May assuming the LIFO cost flow method.
Answer
A 1140
B 1040
C 1080
D 940

26. Determine Hugo's inventory at the end of May assuming the LIFO cost flow method.

A) $100
B) $130
C) $110
D) $120

27.) Friday Enterprises started the period with 150 units in beginning inventory that cost $2 each
Purchase No. of Items Cost
1 200 $3.00
2 150 $3.10
3 50 $3.50
During the period the company purchased inventory items as follows:

Friday sold 350 units after purchase 3
Friday's cost of goods sold assuming the weighted average cost flow method would be:

A) $525
B) $980
C) $700
D) $1065

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Solution Summary

Several accounting questions including change in inventory, effects of LIFO and FIFO on COGS

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First Question:
Company uses FIFO (first in first out). COGS in January is?
We have 800 units sold. Beginning with first units in inventory, working toward bottom, we have:
300 units at $3.10=$630
400 units at $2.40=$960
100 units @ $2.50=$250
630+960+250=$1840
B) $1840

#24
Gross ...

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