Chapter 8 practice - Chapter 8 1 Award 5.89 out of 5.89...

This preview shows page 1 - 4 out of 13 pages.

Chapter 81.Award: 5.89 out of 5.89 pointsFulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):41 units at $10470 units at $80172 units at $55Sales for the year totaled 269 units, leaving 14 units on hand at the end of the year.Ending inventory using the average cost method is (Do not round unit cost calculation. Round your final answer to the nearest whole dollar amount):$770.$956.$1,456.$820.[(41 × $104) + (70 × $80) + (172 × $55)] = $19,324 ÷ 283 units = $68.28 per unit14 units × $68.28 = $956 (rounded)
2.Award: 5.89 out of 5.89 pointsOn January 1, 2016, Badger Inc. adopted the dollar-value LIFO method. The inventory coston this date was $106,000. The 2016 ending inventory, valued at year-end costs, was$128,400. The relative cost index for this inventory in 2016 was 1.07.Suppose that Badger's 2017 ending inventory, valued at year-end costs, was $143,000 andthat the relative cost index for this inventory in 2017 was 1.10. In determining the inventorybalance should Badger report in its 12/31/17 balance sheet:
3.Award: 0 out of 5.89 pointsNu Company reported the following pretax data for its first year of operations.Net sales2,880 Cost of goods available for sale2,380 Operating expenses850 Effective tax rate30% Ending inventories:If LIFO is elected920 If FIFO is elected1,200 What is Nu's net income if it elects LIFO?
4.Award: 5.89 out of 5.89 pointsNueva Company reported the following pretax data for its first year of operations.Net sales7,340 Cost of goods available for sale5,750 Operating expenses1,698 Effective tax rate35% Ending inventories:If LIFO is elected632 If FIFO is elected812 What is Nueva's net income if it elects FIFO? (Round your intermediate and final answerto the nearest whole dollar amount.)

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture