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MGMT 200 EXAM 2 (PURDUE UNIVERSITY) NEWEST 2025/2026 EXAM
2 AND PRACTICE EXAM 300 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
A company has the following inventory transactions:
Jan. 1 Beginning inventory 100 units @ $4 each
Jan. 15 Purchase 100 units @ $5 each
Jan. 31 Purchase 100 units @ $6 each
What would be the cost of goods sold under the FIFO method if 120 units
were sold in January?
A. $ 600
B. $ 500
C. $ 620
D. $ 720 - ANSWER-B. $500
A company has the following inventory transactions:
Jan. 1 Beginning inventory 100 units @ $4 each
Jan. 15 Purchase 100 units @ $5 each
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Jan. 31 Purchase 100 units @ $6 each
What would be the cost of goods sold under the LIFO
method if 120 units were sold in January?
A. $ 600
B. $ 500
C. $ 700
D. $ 720 - ANSWER-C. $700
The following information relates to inventory for LePage's, Inc.
Date Quantity Price
March 1 Beginning Inventory 20 $2
March 7 Purchase 15 3
March 11 Sale (25) 7
March 12 Purchase 20 4
At what amount would LePage's report ending inventoryusing FIFO cost flow
assumptions?
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A. $55
B. $170
C. $110
D. $70 - ANSWER-C. $110
Inventory records for Amalgamated Incorporated revealed the following:
Date Transaction Number of Units Unit Cost
Apr. 1 Beginning inventory 500 $2.40
Apr. 20 Purchase 400 2.50
Amalgamated sold 700 units of inventory during the month. Ending inventory
assuming LIFO would be:
A. $500
B. $490
C. $470
D. $480 - ANSWER-D. $480
Inventory records for Amalgamated Incorporated revealed the following:
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Date Transaction # of Units Unit Cost
Apr. 1 Beginning inventory 500 $2.40
Apr. 20 Purchase 400 $2.50
Amalgamated sold 700 units of inventory during the month. Cost of goods
sold assuming LIFO would be:
A. $1,730
B. $1,700
C. $1,720
D. $1,710 - ANSWER-C. $1,720
Inventory records for Modern Company revealed the following:
Date Transaction Number of Units Unit Cost
Mar. 1 Beginning inventory 1,000 $7.20
Mar. 10 Purchase 600 7.25
Mar. 16 Purchase 800 7.30
Mar. 23 Purchase 600 7.35
Modern sold 2,300 units of inventory during the month. Ending inventory
assuming FIFO would be:
MGMT 200 EXAM 2 (PURDUE UNIVERSITY) NEWEST 2025/2026 EXAM
2 AND PRACTICE EXAM 300 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
A company has the following inventory transactions:
Jan. 1 Beginning inventory 100 units @ $4 each
Jan. 15 Purchase 100 units @ $5 each
Jan. 31 Purchase 100 units @ $6 each
What would be the cost of goods sold under the FIFO method if 120 units
were sold in January?
A. $ 600
B. $ 500
C. $ 620
D. $ 720 - ANSWER-B. $500
A company has the following inventory transactions:
Jan. 1 Beginning inventory 100 units @ $4 each
Jan. 15 Purchase 100 units @ $5 each
,2|Page
Jan. 31 Purchase 100 units @ $6 each
What would be the cost of goods sold under the LIFO
method if 120 units were sold in January?
A. $ 600
B. $ 500
C. $ 700
D. $ 720 - ANSWER-C. $700
The following information relates to inventory for LePage's, Inc.
Date Quantity Price
March 1 Beginning Inventory 20 $2
March 7 Purchase 15 3
March 11 Sale (25) 7
March 12 Purchase 20 4
At what amount would LePage's report ending inventoryusing FIFO cost flow
assumptions?
,3|Page
A. $55
B. $170
C. $110
D. $70 - ANSWER-C. $110
Inventory records for Amalgamated Incorporated revealed the following:
Date Transaction Number of Units Unit Cost
Apr. 1 Beginning inventory 500 $2.40
Apr. 20 Purchase 400 2.50
Amalgamated sold 700 units of inventory during the month. Ending inventory
assuming LIFO would be:
A. $500
B. $490
C. $470
D. $480 - ANSWER-D. $480
Inventory records for Amalgamated Incorporated revealed the following:
, 4|Page
Date Transaction # of Units Unit Cost
Apr. 1 Beginning inventory 500 $2.40
Apr. 20 Purchase 400 $2.50
Amalgamated sold 700 units of inventory during the month. Cost of goods
sold assuming LIFO would be:
A. $1,730
B. $1,700
C. $1,720
D. $1,710 - ANSWER-C. $1,720
Inventory records for Modern Company revealed the following:
Date Transaction Number of Units Unit Cost
Mar. 1 Beginning inventory 1,000 $7.20
Mar. 10 Purchase 600 7.25
Mar. 16 Purchase 800 7.30
Mar. 23 Purchase 600 7.35
Modern sold 2,300 units of inventory during the month. Ending inventory
assuming FIFO would be:
