Question

_______ indicates that legal title to shipped goods passes to the buyer when they arrive at the final destination so that the seller is responsible for transportation costs and any losses in transit.

Question 33 options:

Question 34 (2.5 points)

Virginia Corporation began the month of August with 65 units, each costing $4. On August 2, it purchased 23 units for $5 each. On August 14, it purchased 12 units for $7 each. On August 24, the company sold 67 units for $17 each. Assuming Virginia uses FIFO, determine its ending inventory.

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Question 34 options:

Question 35 (2.5 points)

Texas Corporation began the year with 56 units, each costing $9. On January 4, it purchased 18 units for $10 each. On January 15, it purchased 24 units for $11 each. On January 26, the company sold 31 units for $24 each. Assuming Texas uses FIFO, determine its cost of goods sold.

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Question 35 options:

Question 36 (2.5 points)

Virginia Corporation began the month of August with 65 units, each costing $4. On August 2, it purchased 23 units for $5 each. On August 14, it purchased 12 units for $7 each. On August 24, the company sold 67 units for $17 each. Assuming Virginia uses LIFO, determine its ending inventory.

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Answer 1

33)

FOB destination indicates that legal title to shipped goods passes to the buyer when they arrive at the final destination so that the seller is responsible for transportation cost and any losses in transit.

34)

Computation of ending inventory :

Number of units in ending inventory = 65 + 23 +12 - 67 = 33 units.

Cost of ending inventory = 12 units @$7 + 11 units @$5 = $84 + $55 = $139.

35)

Computation of cost of goods sold:

Cost of goods sold = 31 units @$9 = $279

36)

Computation of cost of ending inventory using LIFO:

Number of units in ending inventory = 33 units

Cost of ending inventory = 33 units @$4 = $132.