Accounting 100 quiz - need help!! Only 1 hours to complete ( 5 multiple choice)

Question 5

In a period of rising prices, FIFO will have

	lower net purchases than LIFO.
	lower income tax expense than LIFO.
	lower net income than LIFO.
	lower cost of goods sold than LIFO.


Question 6

Nick’s Place recorded the following data:

	Units			Unit
Date	Received	Sold	On hand	Cost
1/1 Inventory			600	$2.50
1/8 Purchased	1,000		1,600	300
1/12 Sold		1,200	300

The weighted average unit cost of the inventory at January 31 is:

$3.400.

$2.81.

$2.75.

$2.50.

Question 7

Romanoff Industries had the following inventory transactions occur during 2014:

		Units	Cost/unit
2/1/14	Purchase	54	$45
3/14/14	Purchase	93	$47
5/1/14	Purchase	66	$49

The company sold 150 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s after-tax income using FIFO? (rounded to whole dollars)

		$3,552
		$2,322
		$2,486
		$3,318


Question 8

Moroni Industries has the following inventory information.

July 1	Beginning Inventory	40 units at $120
5	Purchases	240 units at $112
14	Sale	160 units
21	Purchases	120 units at $115
30	Sale	140 units

Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a FIFO basis?

$11,520

$11,500

$33,960

$33,980

Question 9

The following information was available for Pete Company at
December 31, 2014: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $
984,000; and sales $
1,350,000. Pete’s days in inventory in 2014 was

[removed]

25.9 days.

[removed]

29.7 days.

[removed]

33.5 days.

[removed]

21.6 days.

Question 10

The accountant at Almira Company is figuring out the difference in income taxes the company will pay depending on the choice of either FIFO or LIFO as an inventory costing method. The tax rate is 30% and the FIFO method will result in income before taxes of $
8,190. The LIFO method will result in income before taxes of $
7,290. What is the difference in tax that would be paid between the two methods?

[removed]

$270.

[removed]

$630.

[removed]

$900.

[removed]

Cannot be determined from the information provided.