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You asked: "Montana Co. has determined its year-e...

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You asked: "Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows: What should be the carrying value of Montana's inventory? a. $600,000. b. $520,000. c. $590,000. d. $510,000. Save Answer 2. (Points: 2) Under the conventional retail method, which of the following are not included in the denominator of the current period cost-to-retail conversion percentage? a. Purchase returns b. Net markups c. Purchases d. Net markdowns Save Answer 3. (Points: 2) Fad City sells novel clothes which are subject to a great deal of price volatility. A recent item which cost $20 was marked up $12, marked down for a sale by $6 and then had a markdown cancellation of $3. The latest selling price is: a. $14. b. $26. c. $29. d. $35. Save Answer 4. (Points: 2) Lacy's Linen Mart uses the retail method to estimate inventories. Data for the first six months of 2011 include: beginning inventory at cost and retail were $60,000 and $120,000, net purchases at cost and retail were $312,000 and $480,000, and sales during the first six months totaled $490,000. The estimated inventory at June 30, 2011, would be: a. $68,200. b. $55,000. c. $71,500. d. $63,250. Save Answer 5. (Points: 2) Prunedale Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,000, and its ending inventory on December 31 was understated by $17,000. In addition, a purchase of merchandise costing $20,000 was incorrectly recorded as a $2,000 purchase. None of these errors were discovered until the next year. As a result, Prunedale's cost of goods sold for this year was: a. Overstated by $31,000. b. Overstated by $5,000. c. Understated by $31,000. d. Understated by $48,000. Save Answer 6. (Points: 2) Retrospective treatment of prior years' financial statements is required when there is a change from: a. Average cost to FIFO. b. FIFO to average cost. c. LIFO to average cost. d. All of the above. Save Answer 7. (Points: 2) To determine the value of a LIFO layer, using dollar-value LIFO retail: a. Divide the LIFO layer by the layer-year price index and multiply by the layer-year cost-to-retail percentage. b. Multiply the LIFO layer by the base year price index and the current year cost-to-retail percentage. c. Multiply the LIFO layer by the layer-year price index and by the layer-year cost-to-retail percentage. d. Divide the LIFO layer by the layer-year cost-to-retail percentage and multiply by the layer-year price index. Save Answer 8. (Points: 2) Hawkeye Auto Parts uses the retail method to estimate inventories. Data for the first six months of 2011 include: beginning inventory at cost and retail were $55,000 and $100,000, net purchases at cost and retail were $785,000 and $1,300,000, and sales during the first six months totaled $800,000. The estimated inventory at June 30, 2011, would be: a. $330,000. b. $360,000. c. $362,300. d. None of the above is correct. Save Answer 9. (Points: 2) In determining the cost-to-retail percentage for the current year: a. Net markups are included. b. Net markdowns are excluded. c. Net sales are included. d. All of the above are correct. Save Answer 10. (Points: 2) Under the LIFO retail method, which of the following are not included in the denominator of the cost-to-retail conversion percentage? a. Freight-in b. Purchase returns c. Purchases d. Net markdowns

 

Paper#9325 | Written in 18-Jul-2015

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