1.Jones Co. uses the retail inventory method. Given the following data, what is
ID: 2473780 • Letter: 1
Question
1.Jones Co. uses the retail inventory method. Given the following data, what is the ending inventory at cost? Sales at retail $80,000, net purchases at cost $41,200, net purchases at retail $66,800, beginning inventory at cost $22,400, beginning inventory at retail $36,800. Round cost ratio to the nearest whole percent. A. $23,600 B. $63,600 C. $14,936 D. $14,396
2. With Department A sales of $200,000, Department B sales of $600,000, and overhead expense to be allocated of $25,000, the distribution of overhead to Department A based on sales is: A. $18,750 B. $25,000 C. $2,600 D. $6,250
3. Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year 31 sets were sold. Using the LIFO method, the cost of ending inventory is: A. $28.00 B. $12.00 C. $21.00 D. $3.50
Explanation / Answer
3 Unit Cost per set $ Amount ($) Begning Inventory 12 1.5 18 Purchases 7 3 21 8 3.25 26 12 3.5 42 Sales 31 Ending Inventory 8 1.5 12 Answer is Option "B" A B 2 Sales 200000 600000 Overhead 25000 6250 18750 Answer is Option "D" At Cost At Retail 1 Sales at retail $80,000 80000 net purchases at cost $41,200 41200 net purchases at retail $66,800 66800 beginning inventory at cost $22,400 22400 beginning inventory at retail $36,800 36800 ending inventory at cost 63600 -23600
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