On June 1, Jefferson Co

question 107

Short Answer

On June 1, Jefferson Co. had one unit in beginning inventory that cost $5.00. During June, Jefferson paid cash to purchase two additional inventory items. Jefferson purchased the first item for cash at a cost $5.00, and the second at a cost of $6.00. Jefferson Co. sold two inventory items for $12.00 each, receiving cash. Based on this information alone, indicate whether each of the following items is true or false.
_____ a) The amount of ending inventory will be $5 assuming the LIFO cost flow was used.
_____ b) Cost of goods sold would be $11 assuming the weighted average cost flow was used.
_____ c) Cash flow from operating activities in June would be $14 assuming a FIFO cost flow was used.
_____ d) Cash flow from operating activities in June would be $13 independent of what cost flow assumption was used.
_____ e) The amount of gross margin would be $14 assuming the FIFO cost flow was used.

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Definitions:

Normal Populations

Refers to groups whose underlying distribution follows a normal (Gaussian) distribution, characterized by a symmetric bell-shaped curve.

Confidence Interval

A set of values, taken from data samples, which is predicted to include the value of an unspecified population attribute.

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability within a data set, indicating how much individual data points deviate from the mean.

Normal Distribution

A bell-shaped frequency distribution curve that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.