Beacon Food Stores purchased canned goods at an invoice price of $3,000 and terms of 2/10, n/60. Half
of the goods had been mislabeled and were returned immediately to the supplier. If Beacon Food pays
the remaining amount of the invoice within the discount period, the amount paid should be:
At the beginning of 2015, Midway Hardware has an inventory of $340,000. Because sales growth was
strong during 2015, the owner wants to increase inventory on hand to $370,000 at December 31, 2015. If
net sales for 2015 are expected to be $2,120,000, and the gross profit rate is expected to be 30%,
compute the cost of the merchandise the owner should expect to purchase during 2015.
Venus Wholesale Co. started carrying a new product in December. Purchases and sales of this product
during the month were:
Purchased 180 units at $88 per unit.
Sold 170 units.
Purchased 180 units at $96 per unit.
Assuming the LIFO flow assumption is in use, the perpetual inventory records will indicate an ending
inventory of this product of:
(10 × $88) + (180 × $96) = $18,160
At year-end, Venus restates the carrying value of its inventory using periodic LIFO costing procedures.