2. How to covert COGS under LIFO to COGS under FIFO? A. Add the change in the LI

Question

2. How to covert COGS under LIFO to COGS under FIFO?

A. Add the change in the LIFO reserve to COGS under LIFO to yield COGS under FIFO

B. Deduct the change in the LIFO reserve from COGS under LIFO to yield COGS under FIFO

C. Neither of the above

D. Either of the above

3. The Stevens Co. had beginning inventory (1/1/10 of 8 units at $100, purchased 10 units of inventory at $120 on 3/1/10, and another 12 units at $110 on 5/1/10 Ending inventory consisted of 14 units.  What is the cost of ending inventory under FIFO?

A. 1280

B. 1540

C. 1560

D. 3320

4. The Stevens Co. had beginning inventory (1/1/10 of 8 units at $100, purchased 10 units of inventory at $120 on 3/1/10, and another 12 units at $110 on 5/1/10 Ending inventory consisted of 14 units. Use this information to answer the following question: What is the cost of the cost of goods sold under FIFO?

A. 1560

B. 1600

C. 1760

D. 3320

5. [Retail Method.] The following information pertains to the Roberts Co: Cost of net purchases = $70,000; cost of beginning inventory = $10,000; net purchases at retail = $130,000; beginning inventory at retail = $15,000; Sales = $80,000. What is the amount of the ending inventory at retail? (Choose the closest answer).

A. 145000

B. 65000

C. 45000

D. 20000

6. [Retail method.] Ignore Question 5. Assume that ending inventory at retail is $40,000 and that the cost to retail ratio is 40%. What is the amount of ending inventory at cost. (Choose the closest answer).

A. 16000

B. 24000

C. 40000

D. 66667

A. Add the change in the LIFO reserve to COGS under LIFO to yield COGS under FIFO

B. Deduct the change in the LIFO reserve from COGS under LIFO to yield COGS under FIFO

C. Neither of the above

D. Either of the above

Explanation / Answer

2. How to covert COGS under LIFO to COGS under FIFO? A. Add the change in the LI

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