quiz 8 - ubmitted by Tran Khoa(KHOTRAN1 on 6:26:17 PM...

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ubmitted by Tran, Khoa (KHOTRAN1) on 2/15/2012 6:26:17 PM Points Awarded 6.00 Points Missed 4.00 Percentage 60.0% 1. What is the effect of net markups on the cost-retail ratio when using the conventional retail method? A) Increases the cost-retail ratio. B) No effect on the cost-retail ratio. C) Depends on the amount of the net markdowns. D) Decreases the cost-retail ratio. Points Earned: 0.0/1.0 Correct Answer(s): D 2. Oslo Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Oslo use for products #1 and #2, respectively? A) $20.00 and $32.50. B) $23.00 and $32.50. C) $23.00 and $30.00. D) $22.50 and $27.00. Feedback: Points Earned: 1.0/1.0 Correct Answer(s): A
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3. During the current fiscal year, Jeremiah Corp. signed a long-term noncancellable purchase commitment with its primary supplier. Jeremiah agreed to purchase $2.5 million of raw materials during the next fiscal year under this contract. At the end of the current fiscal year, the raw
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This note was uploaded on 02/15/2012 for the course ACCT 2402 taught by Professor Lewis during the Spring '10 term at Lone Star College System.

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quiz 8 - ubmitted by Tran Khoa(KHOTRAN1 on 6:26:17 PM...

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