Hello, I need help solving # 22 and #28 of the attachment. If you can please assist with the steps to getting the answer that’s provided ATTACHMENT PREVIEW Download attachment Sample Test 1 (chapters 6 and 9)with answers Word.pdf Name: __________________________ Date: _____________ 1. The two inventory costing systems used are the ______________ and ______________. 2. Inventory costing methods place primary reliance on assumptions about the flow of A) goods. B) costs. C) resale prices. D) values. 3. Apple-A-Day Company has the following inventory data: July 1 Beginning inventory 20 units at $20 7 Purchases 70 units at $21 22 Purchases 10 units at $22 $ 400 1,470 220 $2,090 A physical count of merchandise inventory on July 30 reveals that there are 25 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is A) $1,585 B) $1,590 C) $1,555. D) $1,540. 4. A company purchased inventory as follows: 200 units at $5.00 300 units at $5.50 The average unit cost for inventory is A) $5.00. B) $5.25. C) $5.30. D) $5.50. Page 1 5. Snug-As-A-Bug Blankets has the following inventory data: July 1 Beginning inventory 15 units at $60 5 Purchases 90 units at $56 14 Sale 60 units 21 Purchases 45 units at $58 30 Sale 42 units Assuming that a perpetual inventory system is used, what is the cost of goods sold on a LIFO basis for July? A) $5,802 B) $5,772 C) $5,796. D) $5,916 6. Hoover Company had beginning inventory of $15,000 at March 1, 2014. During the month, the company made purchases of $55,000. The inventory at the end of the month is $17,300. What is cost of goods sold for the month of March? A) $52,700 B) $55,000 C) $70,000 D) $72,300 7. Which of the following statements is correct with respect to inventories? A) The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. B) It is generally good business management to sell the most recently acquired goods first. C) Under FIFO, the ending inventory is based on the latest units purchased. D) FIFO seldom coincides with the actual physical flow of inventory. Page 2 8. Trumpeting Trumpets has the following inventory data: July 1 Beginning inventory 30 units at $120 5 Purchases 180 units at $112 14 Sale 120 units 21 Purchases 90 units at $115 30 Sale 84 units Assuming that a periodic inventory system is used, what is the cost of goods sold on a FIFO basis. A) $10,992 B) $11,022 C) $23,088. D) $23,118 9. Dole Industries had the following inventory transactions occur during 2014: Units Cost/unit Feb. 1, 2014 Purchase 72 $90 Mar. 14, 2014 Purchase 124 $94 May 1, 2014 Purchase 88 $98 The company sold 204 units at $126 each and has a tax rate of 30%. Assuming that a periodic inventory system is used and operating expenses of $2,000, what is the company’s after-tax income using FIFO? (rounded to whole dollars) A) $4,176 B) $4,784 C) $3,349 D) $2,923 10. The term "FOB" denotes A) free on board. B) freight on board. C) free only (to) buyer. D) freight charge on buyer. Page 3 11. A company just began business and made the following four inventory purchases in June: June 1 150 units $ 825 June 10 200 units 1,120 June 15 200 units 1,140 June 28 150 units 885 $3,970 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is A) $1,134. B) $1,180. C) $1,100. D) $1,120. 12. The accountant at Patton Company has determined that income before income taxes amounted to $11,000 using the FIFO costing assumption. If the income tax rate is 30% and the amount of income taxes paid would be $600 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption? A) $11,600 B) $13,000 C) $9,000 D) $10,400 13. In a period of rising prices, which of the following inventory methods generally results in the lowest net income figure? A) Average cost method B) LIFO me