Question

Carl's Calculator Xpress sells non-programmable calculators.(His target market: Accounting 209 students who forgot theircalculators on Thursday nights.) Carl's has the followinginformation available for the month of November:

# of units

Cost per unit

Beginning inventory, November 1

5

\$2.00

Purchase, November 11

8

\$2.50

Purchase, November 24

10

\$3.00

Ending inventory, November 30

3

What is the total amount of goods available for sale that Carl'smust allocate between cost of goods sold and ending inventory?

a.

\$20

b.

\$23

c.

\$50

d.

\$60

e.

none of the above

Assume Carl's is using the FIFO cost flow method. What amountwill Carl's report as cost of goods sold for November?

a.

\$40

b.

\$51

c.

\$52

d.

\$54

e.

none of the above

assume instead that the company uses the LIFO inventory costflow method. What amount will Carl report as Inventory on thecompany's November 30 balance sheet?

a.

\$6

b.

\$9

c.

\$51

d.

\$54

e.

none of the above

but assume instead that the company uses the weighted averagecost flow method. Carl's sells all calculators for \$6 each. Whatamount will Carl's report as gross profit for November? (round costper unit to 2 decimals, and final answer to whole dollars)

a.

\$44

b.

\$66

c.

\$68

d.

\$70

e.

none of the above