Accounting Quiz and Test
GLICKMAN - ACC111 End of Chapter 6 Test – (40 points)
Name: _______________________________________
Please show all calculations!!!
Morton Company uses the periodic inventory method for the year 20XX and had the following information.
Units Cost Total Cost
Jan 1 Beginning Inventory 100 $4.00 $ 400
Feb 15 Purchase 400 $5.00 $ 2,000
Jun 20 Purchase 200 $7.00 $ 1,400
Nov15 Purchase 300 $8.00 $ 2,400
Cost of Goods Available for Sale
A physical count of inventory on December 31 revealed that there were 350 units on hand. Determine the cost of the 350 units in the inventory and the cost of goods sold by each of the following methods, presenting details of your computations AND prepare an Income Statement assuming Sales were $10,000 and Operating Expenses were $2,000. Don’t forget titles!
A. FIFO
Ending Inventory Computation Income Statement
Cost of Goods Sold Computation
B. LIFO
Ending Inventory Computation Income Statement
Cost of Goods Sold Computation
C. Average Cost
Ending Inventory Computation Income Statement
Cost of Goods Sold Computation
D. Which method gives the highest net income? _________________________