ACCT210 QUIZ #2

3A. Eggers Company reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 214 $9 $ 1,926 12 Purchases 659 11 7,249 23 Purchases 356 12 4,272 30 Inventory 410 Weighted-average unit cost $ 3B. FIFO LIFO Average-cost The cost of the ending inventory$ $ $ The cost of goods sold $ $ $

3A. $10.941 (Total cost divided by total units) 3B. FIFO LIFO Average-cost The cost of the ending inventory$ $4082 $4486 The cost of goods sold $ $9365 $8961

2. At December 31, 2013, Sunrise Company's inventory records indicated a balance of $752,000. Upon further investigation it was determined that this amount included the following: ● $112,000 in inventory purchases made by Sunrise shipped from the seller December 27, 2013 terms FOB destination, but not due to be received until January 2, 2014 ● $74,000 in goods sold by Sunrise with terms FOB destination on December 27. The goods are not expected to reach their destination until January 6, 2014 ● $6,000 of goods received on consignment from Wallwood Company What is Sunrise's correct ending inventory balance at December 31, 2013? (a). $746,000 (b). $634,000 (c). $560,000 (d). $640,000

B

1. Which of the following statements is correct with respect to inventories? (a). FIFO seldom coincides with the actual physical flow of inventory. (b). The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. (c). Under FIFO, the ending inventory is based on the latest units purchased. (d). It is generally good business management to sell the most recently acquired goods first.

C