Question

Q1:Paulson, Inc. has 10 computers which have been part of the inventory for over two years.

Each computer cost ₤600. At the statement date, each computer has a net realizable value of ₤350.

What value should Paulson, Inc., have for the computers at the end of the year?

Select one:

a. ₤2,500.

b. ₤3,500.

c. ₤8,250.

d. ₤6,000.

Q7:

A company just starting business made the following four inventory purchases in June:

June 1 150 units $2,600

June 10 200 units $3,900

June 15 200 units $4,200

June 28 150 units $3,300

A physical count of merchandise inventory on June 30 reveals that there are 100 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is:

Select one:

a. $12,266.

b. $2,200.

c. $12,000.

d. $11,800.

Answer 1