HW #6 - current year. Cost Retail Beginning inventory $...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Lab Homework #6 Name______________________________ 1. Given the historical cost of product Z is $80, the selling price of product Z is $95, costs to sell product Z are $11, the replacement cost for product Z is $83, and the normal profit margin is 40% of sales price, what is the market value that should be used in the lower-of-cost-or-market comparison? a. $80. b. $84. c. $83. d. $46. 2. The following information is available for October for Barton Company. Beginning inventory $150,000 Net purchases 450,000 Net sales 900,000 Percentage markup on cost 66.67% A fire destroyed Barton’s October 31 inventory, leaving undamaged inventory with a cost of $9,000. Using the gross profit method, the estimated ending inventory destroyed by fire is a. $51,000. b. $231,000. c. $240,000. d. $300,000.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Plank Co. uses the retail inventory method. The following information is available for the
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: current year. Cost Retail Beginning inventory $ 156,000 $244,000 Purchases 590,000 830,000 Freight-in 10,000 Employee discounts 4,000 Net markups 30,000 Net Markdowns 40,000 Sales 780,000 3. If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of a. $600,000 and $860,000. b. $600,000 and $856,000. c. $746,000 and $1,100,000. d. $756,000 and $1,104,000. 4. The ending inventory at retail should be a. $320,000. b. $300,000. c. $288,000. d. $280,000. 5. The approximate cost of the ending inventory by the conventional retail method is a. $191,800. b. $189,840. c. $196,000. d. $204,960....
View Full Document

Page1 / 2

HW #6 - current year. Cost Retail Beginning inventory $...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online