Question 3 Use the following information for question 3 (i) and (ii). (i) Beacon Factory, Inc. uses a perpetual inventory system. The company's beginning inventory and purchases of a particular product during the month of May were as follows: Quantity Unit Cost ($) Beginning inventory (1 May) 32 5 Purchases (11 May.) 46 7.5 Purchase (25 May.) 28 6 On 24 May, Beacon Factory, Inc. sold 50 units of this product. The other units remained in inventory at 3 1 May. (i) Refer to the above data. Assuming that Beacon Factory uses the FIFO flow assumption, the ending inventory at 31 May is: A: $268. B: $295. C: $378. D: $405. (ii) Refer to the above data. Assuming that Beacon Factory uses the weighted average cost flow assumption, the cost of goods sold to be recorded at 24 May is: A: $323. B: $308. C: $273 D: $347.
Question 3
Use the following information for question 3 (i) and (ii).
(i) Beacon Factory, Inc. uses a perpetual inventory system. The company's beginning inventory and purchases of a particular product during the month of May were as follows:
|
|
Quantity |
Unit Cost ($) |
|
Beginning inventory (1 May) |
32 |
5 |
|
Purchases (11 May.) |
46 |
7.5 |
|
Purchase (25 May.) |
28 |
6 |
On 24 May, Beacon Factory, Inc. sold 50 units of this product. The other units remained in inventory at 3 1 May.
(i) Refer to the above data. Assuming that Beacon Factory uses the FIFO flow assumption, the ending inventory at 31 May is:
A: $268.
B: $295.
C: $378.
D: $405.
(ii) Refer to the above data. Assuming that Beacon Factory uses the weighted average cost flow assumption, the cost of goods sold to be recorded at 24 May is:
A: $323.
B: $308.
C: $273
D: $347.
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