# For the current year hodges department store reported

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Chapter 2 / Exercise 27
Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
Tan
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75.For the current year, Hodges Department Store reported the following data:Goods available for sale\$1,074,450December 31, inventory balance85,430The current replacement cost of inventory on balance sheet date is \$91,730. Using the lower-of-cost-or-market rule, what is cost of goods sold for Hodges Department Store?a)\$897,290b)\$982,720 c)\$989,020d)impossible to determine from the given data
76.Given the following data:Ending inventory at cost\$23,600Ending inventory at current replacement cost24,000Cost of goods sold(before consideration of LCM rule) 37,000Which of the following depicts the proper account balance after the application of the LCM rule?
77.Inventory at the end of the current year is overstated by \$20,000. What effect will this errorhave on the following year's net income.
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Chapter 2 / Exercise 27
Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
Tan
Expert Verified
CHAPTER 6Accounting                                                 Aamer Waheed Satti78.Two separate errors affected Computer Sales in 20X5. The beginning inventory was understated by \$28,000 and the ending inventory was understated by \$43,000. Net income in 20X5 will be:
79.Two separate errors affected Computer Sales in 20X5. The beginning inventory was understated by \$28,000 and the ending inventory was understated by \$43,000. Net income in 20X6 will be:a)overstated by \$15,000b)overstated by \$43,000c)understated by \$43,000d)understated by \$71,000
80.Two separate errors affected Computer Sales in 20X7. The beginning inventory was overstated by \$12,000 and the ending inventory was overstated by \$18,000. Net income in 20X7 will be:
81.If ending inventory for the current accounting period is overstated by \$3,500:
82.If ending inventory for the current period is understated, then owner’s equity will be: