Answer Happy

QUESTION 1 Jay Thompson and Company uses a perpetual Inventory system and has the following beginning inventory purchases, and sales of inventory in August: Units Unit cost Total cost $88,000 8,000 $11 12,000 $12 $144,000 Inventory Aug 1 Purchase Aug. 9 Sales Aug. 12 Purchase (15,000) 2 2 5,000 $13 $65,000 Aug. 18 Using the information from this table, select the correct answer for each of the following questions. (Note that this applies only to the first three questions in this set.) What is the average unit cost after the last purchase on August 18? $11.60 $12.00 $11.88 $12.30

QUESTION 2 5 Unit cost Total cost $88,000 $11 $12 $144,000 2 2 Units Inventory 8,000 Aug 1 Purchase 12,000 Aug. 9 Sales (15,000) Aug 12 Purchase 5,000 Aug 18 On August 18, the cost of goods sold under FIFO ist $174,000 $13 $65,000 $172,000 $185,000 $177,000

QUESTION 3 Total cost $88,000 $11 $12 $144,000 2 $13 $65,000 Units Unit cost Inventory 8,000 Aug 1 Purchase 12,000 Aug 9 Sales (15000) Aug 12 Purchase 5,000 Aug. 18 In periods of rising prices, the average cost formula will produce: a higher profit than FIFO the same inventory as FIFO a lower profit than FIFO a higher inventory than FIFO