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# Given the following data, what is cost of goods sold as determined under the FIFO method?

Given the following data, what is cost of goods sold as determined under the FIFO method?

Sales revenue350 units at \$35 per unit

Beginning inventory120 units at \$15 per unit

Purchases400 units at \$20 per unit

A) \$6,400

B) \$5,250

C) \$4,600

D) \$7,000

3) Given the following data, calculate the cost of ending inventory using the FIFO costing method:

1/1Beginning inventory45 units at \$10 per unit

2/25Purchases40 units at \$12 per unit

6/15Purchases30 units at \$13 per unit

9/20Purchases25 units at \$14 per unit

12/31Ending inventory40 units

A) \$400

B) \$545

C) \$480

D) \$560

4) Given the following data, calculate the cost of ending inventory using the weighted-average method, rounding to the nearest dollar. (Do not round in the process of your calculations, only round your final answer.)

1/1Beginning inventory50 units at \$10 per unit

3/5Purchases30 units at \$14 per unit

5/30Purchases25 units at \$15 per unit

10/25Purchases20 units at \$16 per unit

12/31Ending inventory45 units

A) \$720

B) \$619

C) \$581

D) \$450

5) FIFO tends to increase cost of goods sold when:

A) costs are increasing

B) costs are declining

C) costs are constant

D) FIFO will always yield the lowest possible cost of goods sold

6) FIFO tends to decrease cost of goods sold when:

A) costs are constant

B) costs are decreasing

C) costs are increasing

D) FIFO will always yield the lowest possible taxes

7) If a company uses FIFO and prices are rising, large purchases of inventory near the end of the year will:

A) decrease gross margin

B) cause cost of goods sold to be equal under FIFO and LIFO

C) decrease the value of ending inventory

D) increase gross margin

8) When the FIFO method is used, cost of goods sold is assumed to consist of:

A) the most recently purchased units

B) the units with the lowest per unit cost

C) the units with the highest per unit cost

D) the oldest units

9) When using the weighted-average cost method to determine the cost of inventory, the weighted-average cost per unit is calculated as the:

A) cost of goods available for sale divided by the number of units available for sale

B) cost of goods sold divided by the average number of units in inventory

C) cost of goods sold divided by the number of units sold

D) cost of goods in ending inventory divided by the number of units in ending inventory

10) In a time of increasing inventory costs, FIFO gives us a higher COGS number compared to the weighted avera

Dec 09 2019 View more View Less