6-10. TWU, Inc uses a perpetual inventory system.   Date   Units Costs Total costs Sept.  1 Beginning inventory 200 $5/unit $ 1,000       4 Sales (price $15/unit) 100              22 Purchased 600 $6/unit 3,600      26 Sales (pri

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6-10. TWU, Inc uses a perpetual inventory system.

 

Date

 

Units

Costs

Total costs

Sept.  1

Beginning inventory

200

$5/unit

$ 1,000

      4

Sales (price $15/unit)

100

 

 

         22

Purchased

600

$6/unit

3,600

     26

Sales (price $15/unit)

500

 

 

Sept. 30

Ending inventory

200

 

 

 

 

6. If TWU, Inc uses the FIFO method, how much is cost of goods sold for September?

a.

$3,400

b.

$3,430

c.

$3,500

d.

$9,000

 

 

7. If TWU, Inc uses the FIFO method, how much is ending inventory for September?

a.

$3,400

b.

$4,600

c.

$1,200

d.

$1,100

 

 

 

8. If TWU, Inc uses the LIFO method, how much is cost of goods sold for September?

a.

$3,400

b.

$3,430

c.

$3,500

d.

$9,000

 

 

 

9. If TWU, Inc uses the LIFO method, how much is ending inventory for September?

a.

$3,400

b.

$4,600

c.

$1,200

d.

$1,100

 

 

 

10.  If TWU, Inc uses the average cost method, how much is cost of goods sold for Septembe r? (Round to two decimal points)

a.

$3,400

b.

$3,430

c.

$3,500

d.

$9,000

 

 

 

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