Question 5In a period of rising prices, FIFO will havelower net purchases than LIFO.lower income tax expense than LIFO.lower net income than LIFO.lower cost of goods sold than LIFO. Question 6Nick’s Place recorded the following data:UnitsUnitDateReceivedSoldOn handCost1/1 Inventory600$2.501/8 Purchased1,0001,6003001/12 Sold1,200300The weighted average unit cost of the inventory at January 31 is:$3.400.$2.81.$2.75.$2.50.Question 7Romanoff Industries had the following inventory transactions occur during 2014:UnitsCost/unit2/1/14Purchase54$453/14/14Purchase93$475/1/14Purchase66$49The company sold 150 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s after-tax income using FIFO? (rounded to whole dollars)$3,552$2,322$2,486$3,318 Question 8 Moroni Industries has the following inventory information.July 1Beginning Inventory40 units at $1205Purchases240 units at $11214Sale160 units21Purchases120 units at $115< class="MsoNormal"> 30Sale140 unitsAssuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a FIFO basis?$11,520$11,500$33,960$33,980Question 9The following information was available for Pete Company at December 31, 2014: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $984,000; and sales $1,350,000. Pete’s days in inventory in 2014 was 25.9 days.29.7 days.33.5 days.21.6 days.Question 10The accountant at Almira Company is figuring out the difference in income taxes the company will pay depending on the choice of either FIFO or LIFO as an inventory costing method. The tax rate is 30% and the FIFO method will result in income before taxes of $8,190. The LIFO method will result in income before taxes of $7,290. What is the difference in tax that would be paid between the two methods? $270.$630.$900.Cannot be determined from the information provided.
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