Question

1.The following information related to inventory for Snickers Corporation.

Date	Description	Quantity	Price
January 1	Beginning Inventory	100	$5
March 18	Purchase	120	$7
July 16	Sale	180	$10
August 19	Purchase	90	$9
December 12	Sale	105	$12

Snickers Corporation perpetually updates its inventory. For the December 12 sale, at what amount would Snickers Corporation report as cost of goods sold using weighted average cost flow assumptions (rounded to the nearest dollar)?

Multiple Choice

• $1,060

• $1,140

• $1,096

• $851. Incorrect

2.The following information related to inventory for Snickers Corporation.

Date	Description	Quantity	Price
January 1	Beginning Inventory	100	$5
March 18	Purchase	120	$7
July 16	Sale	180	$10
August 19	Purchase	90	$9
December 12	Sale	105	$12

For the December 12 sale, at what amount would Snickers Corporation report as cost of goods sold using FIFO cost flow assumptions?

Multiple Choice

• $1,060

• $1,140

• $535. Incorrect

• $1,440

Answer 1

Cost of Goods Sold peniny nventhy +furchases +irect Expenses-closiny 1 nuenthy sales As per FFO method, Sales (iso xlo) sx12) - $1800t1260 - 3060 Deginninyinventhy looxs 500 Purichases ox ) +esx - $840t $585 $1425 2060-500- 1425 135 COGS : $1140 (Aounded to neasest dol la)