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Question;1?3. Would a perpetual inventory system normally be practical for the following types of businesses without a computerized system? (answer yes or no)1. Retail jewelry store 1. ____2. Wholesale clothing store 2. ____3. Retail candy store 3. ____4. If the cost of an item of inventory is $75, the current replacement cost is $64, and the selling price is $95, the amount included in inventoryaccording to the lower of cost or market concept is4. ____5. Merchandise in transit should not be included in the seller?s inventory if the terms are FOB6. The inventory method where the last units purchased are assumed to be sold and the ending inventory is made up of the first units purchased.7. A method that is useful for estimating the cost of inventory that has been destroyed that uses the relationship between cost and retail value is8. During a period of consistently falling prices, the method (FIFO or LIFO) that will result in reporting the greater cost of merchandise sold is9?11. Inventory at the end of the current fiscal year was understated. Statewhether each of the following will be overstated, understated, or not affected:9. Cost of merchandise sold reported on the income statement for thecurrent year10. Net income reported on the income statement for the current year11. Retained earnings reported on the balance sheet at the end of the current year12. Damaged merchandise that can only be sold at below cost should bevalued at

 

Paper#43370 | Written in 18-Jul-2015

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