Exam 5: Accounting for Inventories

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Question 51

Multiple Choice

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[The following information applies to the questions displayed below.] Glasgow Enterprises started the period with 80 units in beginning inventory that cost $7.50 each. During the period, the company purchased inventory items as follows: $\begin{array}{cccc}\text { Purchase } & \text { No. of Items } & \text { Cost } \\1 & 200 & \$ 9.00 \\2 & 150 & \$ 9.30 \\3 & 50 & \$ 10.50\end{array}$ Glasgow sold 220 units after purchase 3 for $17.00 each. -What is Glasgow's cost of goods sold under FIFO?

A) $1,650
B) $1,860
C) $2,310
D) $2,100

E) B) and C)
F) All of the above

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Question 52

Multiple Choice

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[The following information applies to the questions displayed below.] The inventory records for Radford Co. reflected the following: $\begin{array}{|c|c|}\hline \text { Beginning inventory@May } 1 & \text { I00units@\$4.00 } \\\hline \text { Firstpurchase@May } 7 & 300 \text { units@\$4.40 } \\\hline \text { Second purchase@.May } 17 & \text { 500units@\$4.60 } \\\hline \text { Third purchase@May 23 } & 100 \text { units@\$4.80 } \\\hline \text { Sales@May } 31 & 900 \text { units@\$7.80 } \\\hline\end{array}$ -What is the amount of ending inventory assuming the FIFO cost flow method?