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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
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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 25.9 days.29.7 days.33.5 days.21.6 days.Question 10The 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? $270.$630.$900.Cannot be determined from the information provided.