Questions:
Quick Start Company just starting business made the following four inventory purchases in June:
Date Total units Total amount
June 1 150 $ 780
June 10 200 1,170
June 15 200 1,260
June 28 150 990
A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand.
1. Using the LIFO inventory method, the value of the ending inventory on June 30 is
a. $1,365
b. $1,620
c. $2,580
d. $2,835
2. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is
a. $1,620
b. $2,290
c. $2,580
d. $2,835
3. Using the average cost method, the amount allocated to the ending inventory on June 30 is
a. $4,200
b. $2,700
c. $1,150
d. $1,500
4. Which of the following inventory costing method uses actual instead of estimate cost?
a. FIFO method
b. LIFO method
c. Average cost method
d. Specific identification method