Louisiana State University, Shreveport ACCT 701 Assessment 4 1)Based on the information below and considering that this company paid $322,500 in cash to its suppliers during the year, what is the company’s COGS for 2015?                 1/1/2015              12/31/2015 Inventory            $23,400 $34,560 Accounts Payable            $354,000              $223,000   a

Louisiana State University, Shreveport

ACCT 701

Assessment 4

1)Based on the information below and considering that this company paid $322,500 in cash to its suppliers during the year, what is the company’s COGS for 2015?

                1/1/2015              12/31/2015

Inventory            $23,400 $34,560

Accounts Payable            $354,000              $223,000

a. $311, 340

b.   $442,340

c.             $322,500 d.   $180,340

1.                            FFS Clothing Store sells socks. During January 2014, its inventory records for one particular brand of socks were as follows:

                Quantity              Price per pair     Total

Beginning Inventory       6 pairs   $18         = $108

January 6 Purchase         3 pairs   $16         = $48

January 10 Sale 5 pairs   N/A       

Jan. 15 Purchase               8 pairs   $15         = $120

Jan.20 Sale          10 pairs N/A       

Jan. 25 Purchase               4 pairs   $22         = $88

Using this information, what is the perpetual FIFO COGS?

a.   $240

b. $171 c.             $246

d.   $242

2.            ABC Inc. sells socks. During January 2016, its inventory record for one brand of its socks were as follows:

                Quantity              Price per pair     Total

Beginning Inventory       10 pairs $20         = $200

January 6 Purchase         4 pairs   $25         = $100

January 10 Sale 5 pairs   N/A       

Jan. 15 Purchase               7 pairs   $30         = $210

Jan.20 Sale          10 pairs N/A       

Jan. 25 Purchase               4 pairs   $30         = $120

Using this information, what is the COGS using the average periodic cost method?

a. $236 b.   $378

c.             $265

d.   $358

3.            If ending inventory on the last day of the year is overstated by $14,000, what is the effect on the net income for the current year?

4.            If at the end of 2016, ending inventory is overstated, the…?

5.            ABC Inc. sells socks. During February 2016, the inventory records for one brand of its socks were as follows:

                Quantity              Price per Pair     Total

Beginning Inventory       10 pairs $20         = $200

Feb. 6 Purchase                4 pairs   $25         = $100

Feb. 10 Purchase              5 pairs   $27.40   = $137

Feb. 15 Sale        7 pairs   N/A       

Using the information, determine ending inventory under the weighted-average method.

a.   $297

b.   $252

c.             $161 d.   $276

6.            Based on the information below and considering that this company paid $213,500 in cash to its suppliers during the year, what is the company’s COGS for 2015?

                1/1/2015              12/31/2015

Inventory            $122,400              $134,560

Accounts Payable            $54,000 $123,000

a. $282,500

b. $81,160

c.             None of these d. $270,340

7.            FFS Clothing Store sell socks. During January 2017, its inventory records for one particular brand of socks were as follows:

                Quantity              Price per pair     Total

Beginning Inventory       16 pairs $18         = $288

January 6 Purchase         13 pairs $16         = $208

January 10 Sale 15 pairs N/A       

Jan. 15 Purchase               18 pairs $15         = $270

Jan.20 Sale          22 pairs N/A       

Jan. 25 Purchase               14 pairs $22         = $308

See information for FFS Clothing Store above. What is the perpetual LIFO remaining inventory is?

a. $488

b.            None of these

c.             $586

d.   $371

8.            Match each term with its proper definition: