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Quiz 7 - Quiz 7 Requires Respondus LockDown Browser...

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Quiz 7 - Requires Respondus LockDown Browser Instructions You have 45 minutes to complete the quiz. Timed Test This Test has a 45 minute timer.The elapsed time appears at the top right of the window. A 1 minute warning will be displayed. [The timer does not appear when previewing this Test] Multiple Attempts Not allowed. This Test can only be taken once. Force Completion This Test must be completed now. Test/Survey Status o Question Completion Status: 1 2 3 4 5 6 7 8 9 10 Saving Answer Question 1 Question 1 1. Teel Distribution Co. has one item in its ending inventory. In pricing its ending inventory using the lower of cost or market rule , what unit value should Teel use for the product? Estimated selling price $35.00 Estimated cost of disposal 7.00 Normal profit margin 30% Replacement cost 20.00 Historical cost 22.00 Answer $17.50. $20.00. $28.00. $35.00. 0.5 points Question 2 Question 2
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1. On April 1, the Teagles, Inc., had an inventory of 300 steel grills, costing $100 each. Purchases and sales during April are shown below: Date Purchases Sales April 4 100 @ $125 April 10 50 @ $110 April 12 150 @ $130 April 24 [email protected]$120 What is the cost of Teagle's inventory on April 30 using the periodic FIFO method? Answer $12,700 $16,000 $17,700 $19,200 0.5 points Question 3 Question 3 1. Which of the statements is NOT true as it relates to the dollar value LIFO inventory method? Answer It is easier to erode LIFO layers using dollar value LIFO techniques than it is with specific goods pooled LIFO. Under the dollar value LIFO method, it is possible to have the entire inventory in only one pool. Several pools are commonly employed in using the dollar value LIFO inventory method. Under dollar value LIFO, increases and decreases in a pool are determined and measured in terms of dollar value, not physical quantity. 0.5 points Question 4 Question 4 1. Which of the following represents the best justification for the departure from the historical cost principle that results when lower of cost or market is used?
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Answer It is easier to keep track of market value than it is to keep track of cost as market value is available from any supplier.
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