Question

The following lots of Commodity Z were available for sale during the year.

Beginning inventory	10 units at $30
First purchase	25 units at $32
Second purchase	30 units at $34
Third purchase	10 units at $35

The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the FIFO method?

a.$620

b.$690

c.$659

d.$655

Which statement is not true?

a.Cash and cash equivalents are the first items reported under current assets.

b.Current assets are normally reported in order of their liquidity.

c.Disclosures related to receivables are reported on the financial statement notes.

d.All receivables that are expected to be realized in cash beyond 265 days are reported in the non-current assets section.

Answer 1

(i)	Correct option is: b. $690
	FIFO periodic:
	Ending Inventory	=	(10 units X $35) + (10 units X $34)
		=	$                                                         690
(ii)	Correct option is: d. All receivables that are expected to be realized in cash beyond 265 days are reported in the non - current assets section

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answered by: anonymous