140.Walsh Retailers purchased merchandise with a list price of $50,000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. Walsh should record the cost of this merchandise as a.$35,000.b.$36,000.c.$39,000.d.$50,000. 141.On June 1, 2010, Penny Corp. sold merchandise with a list price of $20,000 to Linn on account. Penny allowed trade discounts of 30% and 20%. Credit terms were 2/15, n/40 and the sale was made f.o.b. shipping point. Penny prepaid $400 of delivery costs for Ison as an accommodation. On June 12, 2010, Penny received from Ison a remittance in full payment amounting to 142.Groh Co. recorded the following data pertaining to raw material X during January 2010:UnitsDateReceivedCostIssuedOn Hand1/1/10Inventory$8.003,2001/11/10Issue1,6001,6001/22/10Purchase4,000$9.405,600The moving-average unit cost of X inventory at January 31, 2010 is 143.During periods of rising prices, a perpetual inventory system would result in the same dollar amount of ending inventory as a periodic inventory system under which of the following inventory cost flow methods?FIFOLIFO 8 - 31
144.Hite Co. was formed on January 2, 2010, to sell a single product. Over a two-year period, Hite's acquisition costs have increased steadily. Physical quantities held in inventory were equal to three months' sales at December 31, 2010, and zero at December 31, 2011. Assuming the periodic inventory system, the inventory cost method which reports the highest amount of each of the following isInventoryCost of SalesDecember 31, 20102011 a.LIFOFIFOb.LIFOLIFOc.FIFOFIFOd.FIFOLIFO 145.Keck Co. had 450 units of product A on hand at January 1, 2010, costing $42 each. Purchases of product A during January were as follows:DateUnitsUnit CostJan. 10600$4418750462830048A physical count on January 31, 2010 shows 600 units of product A on hand. The cost of the inventory at January 31, 2010 under the LIFO method is 146.When the double extension approach to the dollar-value LIFO inventory cost flow method is used, the inventory layer added in the current year is multiplied by an index number. How would the following be used in the calculation of this index number?Ending inventoryEnding inventoryat current year costat base year cost
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