# Inventories

Quarter** Units Held/Purchased****Unit Cost ()****Total Cost () Opening Inventory 15 24 360 1 25 15 375 2 22 18 396 3 18 20 360 4 20 22 440 Total 100 1,931**

Given that Magna sold 12, 24, 24, and 26 units in the four quarters respectively, answer the following questions:

1. Given that the company uses FIFO, ending inventory under the periodic system is closest to:
2. \$336
3. \$308
4. \$447
5. Given that the company uses LIFO cost flow assumption, cost of goods sold under the periodic system is closest to:
6. Consider the following statements: Statement 1: Given that the company uses the perpetual system, it would report lower cost of goods sold under the LIFO cost flow assumption for the first quarter than it would under the FIFO cost flow assumption. Statement 2: Given that the company uses the periodic system, it would report lower ending inventory under the FIFO cost flow assumption than it would under the LIFO cost flow assumption. Which of the following is most accurate?
7. Only Statement 1 is incorrect.
8. Only Statement 2 is incorrect.
9. Both statements are correct.
10. Given that the company uses FIFO, cost of goods sold for the second quarter under the perpetual system is closest to:
11. \$387
12. \$426
13. \$288
14. Given that the company uses FIFO, ending inventory for the third quarter under the perpetual system is closest to:
15. \$435
16. \$456
17. \$396
18. Given that the company uses LIFO, ending inventory for the second quarter under the perpetual system is closest to:
19. \$555
20. \$525
21. \$456
22. Given that the company uses LIFO, cost of goods sold for the third quarter under the perpetual system is closest to:
23. \$420
24. \$450
25. \$426
26. Given that the company uses the perpetual system and FIFO, which of the following statements is most accurate? The company would report:
27. Higher cost of goods sold in the fourth quarter than it would report under the LIFO cost flow assumption.
28. Higher ending inventory in the fourth quarter than it would report under the LIFO cost flow assumption.
29. Higher cost of goods sold for the year than it would report under the LIFO cost flow assumption