Milford Company had 400 units of Tank in its inventory at a cost of 4 each It

# Milford company had 400 units of tank in its

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119.Milford Company had 400 units of “Tank” in its inventory at a cost of \$4 each. It purchased600 more units of “Tank” at a cost of \$6 each. Milford then sold 700 units at a selling priceof \$10 each. The LIFO liquidation overstated normal gross profit by a.\$ -0-b.\$200.c.\$400.d.\$600. 120.Nichols Company had 400 units of “Dink” in its inventory at a cost of \$6 each. It purchased600 more units of “Dink” at a cost of \$9 each. Nichols then sold 700 units at a selling priceof \$15 each. The LIFO liquidation overstated normal gross profit by 8 - 25
Use the following information for 121 and 122RF Company had January 1 inventory of \$100,000 when it adopted dollar-value LIFO. During theyear, purchases were \$600,000 and sales were \$1,000,000. December 31 inventory at year-endprices was \$143,360, and the price index was 112. 121.What is RF Company’s ending inventory? 122.What is RF Company’s gross profit? Use the following information for 123 and 124Hay Company had January 1 inventory of \$100,000 when it adopted dollar-value LIFO. Duringthe year, purchases were \$600,000 and sales were \$1,000,000. December 31 inventory at year-end prices was \$126,500, and the price index was 110. 123.What is Hay Company’s ending inventory? a.\$110,000.b.\$115,000.c.\$116,500.d.\$126,500. 124.What is Hay Company’s gross profit? Use the following information for questions 125 through 126.Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31,2009. Its inventory at that date was \$220,000 and the relevant price index was 100. Informationregarding inventory for subsequent years is as follows:Inventory atCurrentDateCurrent PricesPrice IndexDecember 31, 2010\$256,800107December 31, 2011290,000125December 31, 2012325,000130125.What is the cost of the ending inventory at December 31, 2010 under dollar-value LIFO? 8 - 26
Valuation of Inventories: A Cost-Basis Approach 126.What is the cost of the ending inventory at December 31, 2011 under dollar-value LIFO? 127.What is the cost of the ending inventory at December 31, 2012 under dollar-value LIFO? a.\$256,240.b.\$254,800.c.\$250,000.d.\$263,400.128.Wise Company adopted the dollar-value LIFO method on January 1, 2010, at which timeits inventory consisted of 6,000 units of Item A @ \$5.00 each and 3,000 units of Item B @\$16.00 each. The inventory at December 31, 2010 consisted of 12,000 units of Item A and7,000 units of Item B. The most recent actual purchases related to these items were asfollows:QuantityItemsPurchase DatePurchasedCost Per UnitA12/7/102,000\$ 6.00A12/11/1010,0005.75B12/15/107,00017.00Using the double-extension method, what is the price index for 2010 that should becomputed by Wise Company?

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