Quiz #7 Solution

Quiz #7 Solution - a $756,000 and $1,104,000 b $756,000 and...

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401 Lab Quiz #7 Name___________________________ Section : 8:00 – 9:15am 9:30 – 10:45am Plank Co. uses the retail inventory method. The following information is available for the 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 1. 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 . 2. 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. 3. If the ending inventory is to be valued at approximately LIFO cost, the calculation of the cost ratio should be based on cost and retail of
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Unformatted text preview: a. $756,000 and $1,104,000. b. $756,000 and $1,064,000. c. $600,000 and $820,000 . d. $600,000 and $860,000. 4. Assuming that the LIFO inventory method is used, that the beginning inventory is the base inventory when the index was 100, and that the index at year end is 112, the ending inventory at dollar-value LIFO retail cost is a. $160,920. b. $185,514. c. $191,800. d. $204,960. Eaton Company, which uses the retail LIFO method to determine inventory cost, has provided the following information for 2012: Cost Retail Inventory, 1/1/12 $ 141,000 $210,000 Net purchases 567,000 843,000 Net markups 102,000 Net markdowns 45,000 Net sales 795,000 5. Assuming stable prices (no change in the price index during 2012), what is the cost of Eaton's inventory at December 31, 2012? a. $192,150. b. $207,150. c. $204,000. d. $198,450...
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Quiz #7 Solution - a $756,000 and $1,104,000 b $756,000 and...

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