Reference no: EM132956541

The Mouvi Corporation sold 1200 units of hardware products during 2020. The selling price is RM45 each. The company made several purchases during 2020 as follows: 1st January, 420 units at RM22 per unit, 1st March, 350 units at RM30 per unit, 1st May, 200 units at RM35 per unit, and 1st August, 400 units at RM40 per unit. Currently, the company has RM16,260 current assets excluding inventory and RM10,000 of current liabilities.

Problem a) Under the LIFO inventory valuation method, the company's cost of goods sold is _______.
a) RM42,740
b) RM39,000
c) RM39,940
d) RM54,000

Problem b) What is the ending inventory under the LIFO inventory valuation method?
a) RM2,800
b) RM6,800
c) RM3,740
d) RM1,540

Problem c) What would be the cost of purchases if the company uses the FIFO inventory valuation method?
a) RM35,940
b) RM36,140
c) RM30,920
d) RM34,840

Problem d) What would be the ending inventory during 2020 under the FIFO inventory valuation method?
a) RM9,200
b) RM7,480
c) RM6,800
d) RM5,500

Problem e) The company has a current ratio of ___________ under the LIFO inventory valuation method, while ___________ if it is using the FIFO inventory valuation method.
a) 2 times, 2.55 times
b) 2.31 times, 2.37 times
c) 1.91 times, 2.55 times
d) 2 times, 2.31 times