1.Kingbird, Inc. took a physical inventory on December 31 and determined that goods costing $230,000 were on hand. Not included in the physical count were $31,000 of goods purchased from Blue Spruce Corp., FOB, shipping point, and $20,500 of goods sold to Blossom Company for $30,000, FOB destination. Both the Blue Spruce purchase and the Blossom sale were in transit at year-end. What amount should Kingbird report as its December 31 inventory? Ending Inventory 2. In its first month of operations, Sheridan Company made three purchases of merchandise in the following sequence: (1) 240 units at $3, (2) 340 units at $5, and (3) 440 units at $6. Assuming there are 140 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Sheridan Company uses a periodic inventory system. FIFO LIFO The Ending Inventory $Enter a dollar amount  $Enter a dollar amount  3. The Blue Spruce Company has just completed a physical inventory count at year end, December 31, 2022. Only the items on the shelves, in storage, and in the receiving area were counted and costed on the FIFO basis. The inventory amounted to $ 77,300. During the audit, the independent CPA discovered the following additional information: (a) There were goods in transit on December 31, 2022, from a supplier with terms FOB destination, costing $ 9,900. Because the goods had not arrived, they were excluded from the physical inventory count. (b) On December 27, 2022, a regular customer purchased goods for cash amounting to $ 1,150 and had them shipped to a bonded warehouse for temporary storage on December 28, 2022. The goods were shipped via common carrier with terms FOB shipping point. The customer picked the goods up from the warehouse on January 4, 2023. Blue Spruce Company had paid $ 575 for the goods and, because they were in storage, Blue Spruce included them in the physical inventory count. (c) Blue Spruce Company, on the date of the inventory, received notice from a supplier that goods ordered earlier, at a cost of $ 3,300, had been delivered to the transportation company on December 28, 2022; the terms were FOB shipping point. Because the shipment had not arrived on December 31, 2022, it was excluded from the physical inventory. (d) On December 31, 2022, there were goods in transit to customers, with terms FOB shipping point, amounting to $ 850 (expected delivery on January 8, 2023). Because the goods had been shipped, they were excluded from the physical inventory count. (e) On December 31, 2022, Blue Spruce Company shipped $ 2,900 worth of goods to a customer, FOB destination. The goods arrived on January 5, 2023. Because the goods were not on hand, they were not included in the physical inventory count. (f) Blue Spruce Company, as the consignee, had goods on consignment that cost $ 2,900. Because these goods were on hand as of December 31, 2022, they were included in the physical inventory count. ...

1. 1.Kingbird, Inc. took a physical inventory on December 31 and
determined that goods costing $230,000 were on hand. Not
included in the physical count were $31,000 of goods purchased
from Blue Spruce Corp., FOB, shipping point, and $20,500 of
goods sold to Blossom Company for $30,000, FOB destination.
Both the Blue Spruce purchase and the Blossom sale were in
transit at year-end.
What amount should Kingbird report as its December 31
inventory?
Ending Inventory
2. In its first month of operations, Sheridan Company made
three purchases of merchandise in the following sequence:
(1) 240 units at $3, (2) 340 units at $5, and (3) 440 units at $6.
Assuming there are 140 units on hand at the end of the period,
compute the cost of the ending inventory under (a) the FIFO
method and (b) the LIFO method. Sheridan Company uses a
periodic inventory system.
FIFO
LIFO
The Ending Inventory
$Enter a dollar amount
$Enter a dollar amount
3. The Blue Spruce Company has just completed a physical
inventory count at year end, December 31, 2022. Only the items
on the shelves, in storage, and in the receiving area were

2. counted and costed on the FIFO basis. The inventory amounted
to $ 77,300. During the audit, the independent CPA discovered
the following additional information:
(a)
There were goods in transit on December 31, 2022, from a
supplier with terms FOB destination, costing $ 9,900. Because
the goods had not arrived, they were excluded from the physical
inventory count.
(b)
On December 27, 2022, a regular customer purchased goods for
cash amounting to $ 1,150 and had them shipped to a bonded
warehouse for temporary storage on December 28, 2022. The
goods were shipped via common carrier with terms FOB
shipping point. The customer picked the goods up from the
warehouse on January 4, 2023. Blue Spruce Company had paid
$ 575 for the goods and, because they were in storage, Blue
Spruce included them in the physical inventory count.
(c)
Blue Spruce Company, on the date of the inventory, received
notice from a supplier that goods ordered earlier, at a cost of
$ 3,300, had been delivered to the transportation company on
December 28, 2022; the terms were FOB shipping point.
Because the shipment had not arrived on December 31, 2022, it
was excluded from the physical inventory.
(d)
On December 31, 2022, there were goods in transit to
customers, with terms FOB shipping point, amounting to
$ 850 (expected delivery on January 8, 2023). Because the

3. goods had been shipped, they were excluded from the physical
inventory count.
(e)
On December 31, 2022, Blue Spruce Company shipped
$ 2,900 worth of goods to a customer, FOB destination. The
goods arrived on January 5, 2023. Because the goods were not
on hand, they were not included in the physical inventory count.
(f)
Blue Spruce Company, as the consignee, had goods on
consignment that cost $ 2,900. Because these goods were on
hand as of December 31, 2022, they were included in the
physical inventory count.
Analyze the above information and calculate a corrected amount
for the ending inventory.
Corrected inventory
$ enter corrected inventory in dollars
4. Novak has the following inventory data:
Nov. 1
Inventory
37 units @ $ 7.30 each
8
Purchase
146 units @ $ 7.85 each

4. 17
Purchase
73 units @ $ 7.70 each
25
Purchase
110 units @ $ 8.10 each
A physical count of merchandise inventory on November 30
reveals that there are 122 units on hand. Ending inventory under
FIFO is
$ 1932.
$ 1886.
$ 983.
$ 937.
5. Concords has the following inventory data:
Nov. 1
Inventory
24 units @ $ 4.80 each
8
Purchase
96 units @ $ 5.15 each
17
Purchase

5. 48 units @ $ 5.05 each
25
Purchase
72 units @ $ 5.30 each
A physical count of merchandise inventory on November 30
reveals that there are 80 units on hand. Cost of goods sold under
LIFO is
$ 830.
$ 812.
$ 422.
$ 404.
6. Kingbird has the following inventory data:
Nov. 1
Inventory
34 units @ $ 6.80 each
8
Purchase
137 units @ $ 7.35 each
17
Purchase
68 units @ $ 7.20 each

6. 25
Purchase
103 units @ $ 7.50 each
A physical count of merchandise inventory on November 30
reveals that there are 114 units on hand. Assuming that the
specific identification method is used and that ending inventory
consists of 34 units from each of the three purchases
and 12 units from the November 1 inventory, cost of goods sold
is
$ 1669.
$ 1637.
$ 1664.
$ 1023.
7. Novak Corp. had the following inventory transactions occur
during 2022:
Units
Cost/unit
Feb. 1, 2022
Purchase
132
$ 55
Mar. 14, 2022

7. Purchase
227
$ 57
May 1, 2022
Purchase
161
$ 60
The company sold 373 units at $ 77 each and has a tax rate
of 30%. Assuming that a periodic inventory system is used,
what is the company’s gross profit using LIFO?
$ 21744
$ 21039
$ 6977
$ 7682
8. Blue Spruce Corp. had the following inventory transactions
occur during 2022:
Units
Cost/unit
Feb. 1, 2022
Purchase

8. 104
$ 104
Mar. 14, 2022
Purchase
180
$ 109
May 1, 2022
Purchase
128
$ 114
The company sold 296 units at $ 146 each and has a tax rate
of 30%. Assuming that a periodic inventory system is used,
what is the company’s gross profit using FIFO?
$ 31804
$ 10312
$ 32904
$ 11412
9. Blue Spruce Corp. had beginning inventory of $ 17400 at
March 1, 2022. During the month, the company made purchases
of $ 75400. The inventory at the end of the month is $ 20070.
What is cost of goods sold for the month of March?
$ 92800
$ 72730
$ 75400
$ 95470

9. 10. Swifty Corporation has the following inventory data:
July 1
Beginning inventory
12 units at $ 19
$ 228
7
Purchases
42 units at $ 20
840
22
Purchases
6 units at $ 22
132
$ 1200
A physical count of merchandise inventory on July 30 reveals
that there are 20 units on hand. Using the average cost method,
the value of ending inventory is

10. $ 412.
$ 388.
$ 407.
$ 400.
11. Windsor, Inc. has the following inventory data:
July 1
Beginning inventory
26 units at $ 16
$ 416
7
Purchases
90 units at $ 17
1530
22
Purchases
13 units at $ 19
247
$ 2193

11. A physical count of merchandise inventory on July 30 reveals
that there are 41 units on hand. Using the LIFO inventory
method, the amount allocated to ending inventory for July is
$ 779.
$ 697.
$ 671.
$ 656.
12. Pharoah Company has the following inventory data:
July 1
Beginning inventory
30 units at $ 23
$ 690
7
Purchases
169 units at $ 24
4056
22
Purchases
31 units at $ 22
682

12. $ 5428
A physical count of merchandise inventory on July 30 reveals
that there are 71 units on hand. Using the average cost method,
the value of ending inventory is
$ 1676.
$ 1704.
$ 1642.
$ 1562.
13. Skysong, Inc. has the following inventory data:
July 1
Beginning Inventory
33 units at $ 16
$ 528
7
Purchases
115 units at $ 17
1955
22
Purchases
16 units at $ 18
288

13. $ 2771
A physical count of merchandise inventory on July 30 reveals
that there are 41 units on hand. Using the FIFO inventory
method, the amount allocated to cost of goods sold for July is
$ 2033.
$ 1976.
$ 2107.
$ 2058.
14. Nash's Trading Post, LLC uses a periodic inventory system.
Details for the inventory account for the month of January 2022
are as follows:
Units
Per unit price
Total
Balance, 1/1/2022
220
$ 4.00
$ 880
Purchase, 1/15/2022

14. 110
.. 3.90
429
Purchase, 1/28/2022
110
.. 4.10
451
An end of the month (1/31/2022) inventory showed
that 180 units were on hand. If the company uses FIFO and sells
the units for $ 7 each, what is the gross profit for the month?
$ 1260
$ 1820
$ 1036
$ 784
15. Windsor, Inc. uses a periodic inventory system. Details for
the inventory account for the month of January 2022 are as
follows:
Units
Per unit price
Total
Balance, 1/1/2022
260

15. $ 4.00
$ 1040
Purchase, 1/15/2022
130
.. 4.60
598
Purchase, 1/28/2022
130
.. 4.70
611
An end of the month (1/31/2022) inventory showed
that 210 units were on hand. If the company uses LIFO, what is
the value of the ending inventory?
$ 840
$ 930
$ 979
$ 1409
16. Financial information is presented below:
Operating expenses
$ 25000
Sales revenue
193000

16. Cost of goods sold
157000
Gross profit would be
$ 36000.
$ 25000.
$ 11000.
$ 168000.
17. Financial information is presented below:
Operating expenses
$ 49000
Sales revenue
208000
Cost of goods sold
157000
The gross profit rate would be
0.25.
0.75.
0.01.
0.24.

17. 18. Financial information is presented below:
Operating expenses
$ 30000
Sales returns and allowances
8000
Sales discounts
3000
Sales revenue
142000
Cost of goods sold
93000
Gross profit would be
$49000.
$38000.
$41000.
$46000.
19. Financial information is presented below:
Operating expenses
$ 24000
Sales returns and allowances
6000
Sales discounts
4000
Sales revenue
154000
Cost of goods sold
92000

18. The gross profit rate would be
0.34.
0.40.
0.64.
0.36.
20. Financial information is presented below:
Operating expenses
$ 63000
Sales returns and allowances
4000
Sales discounts
6000
Sales revenue
178000
Cost of goods sold
92000
The gross profit rate would be
0.55.
0.43.
0.45.
0.48.

19. 21. Financial information is presented below:
Operating expenses
$ 41000
Sales returns and allowances
2000
Sales discounts
6000
Sales revenue
178000
Cost of goods sold
91000
The profit margin would be
0.44.
0.21.
0.46.
0.22.
22. Financial information is presented below:
Operating expenses
$ 38000
Sales returns and allowances
8000
Sales discounts
2000
Sales revenue
140000
Cost of goods sold
86000

20. The gross profit rate would be
0.35.
0.66.
0.34.
0.39.
23. Assume Marigold Corp. uses the periodic inventory system
and has a beginning inventory balance of $ 5300, purchases of
$ 71000, and sales of $ 122000. Marigold closes its records
once a year on December 31. In the accounting records, the
inventory account would be expected to have a balance on
December 31 prior to adjusting and closing entries that was
less than $ 5300.
indeterminate.
more than $ 5300.
equal to $ 5300.
24. Financial information is presented below:
Operating expenses
$ 50000
Sales returns and allowances
4000
Sales discounts
7000

21. Sales revenue
188000
Cost of goods sold
99000
Gross Profit would be
$89000.
$78000.
$93000.
$85000.
25. Financial information is presented below:
Operating expenses
$ 43000
Sales returns and allowances
15000
Sales discounts
2000
Sales revenue
170000
Cost of goods sold
100000
The amount of net sales on the income statement would be
$168000.
$170000.

22. $153000.
$155000.
26. At the beginning of the year, Monty had an inventory of
$ 630000. During the year, the company purchased goods
costing $ 2240000. If Monty reported ending inventory of
$ 950000 and sales of $ 3720000, their cost of goods sold and
gross profit rate would be
$ 2430000 and 48.39%.
$ 1290000 and 51.61%.
$ 1920000 and 48.39%.
$ 1920000 and 51.61%.
27. Pharoah Company accounting records show the following
for the year ending on December 31, 2022.
Purchase Discounts
$ 13200
Freight-in
16300
Purchases
715020
Beginning Inventory
58000
Ending Inventory
57600
Purchase Returns and Allowances
10700

23. Using the periodic system, the cost of goods purchased is
$722620.
$707420.
$676220.
$728820.
28. Concord’s Fashions sold merchandise for $ 189000 cash
during the month of July. Returns that month totaled $ 4800. If
the company’s gross profit rate is 30%, Concord’s will report
monthly net sales revenue and cost of goods sold of
$ 189000 and $ 132300.
$ 184200 and $ 55260.
$ 184200 and $ 128940.
$ 189000 and $ 128940.
29. United Services and Supplies reports net income of
$ 56000 and cost of goods sold of $ 381000. If US&S’s gross
profit rate was 40%, net sales were
$ 683500.
$ 1008500.
$ 635000.
$ 952500.

24. 30.