The following information pertains to the Roberts Co: Cost of net purchases = $7
ID: 2497723 • Letter: T
Question
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. $145,000 b. $65,000 c. $45,000. d. $20,000 e. $30,000
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. $16,000 b. $24,000 c. $40,000 d. $66,667
7. [LIFO Reserve.] How to covert COGS under LIFO to COGS under FIFO? (Hint: read the text P432 15th e)
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.
8. On July 1, 2006, the ABC Co. sold equipment it no longer needed for $100,000. On 12/31/05, the balance in the Equipment Account was $130,000 and the balance in the Accumulated Depreciation account as $40,000. The company uses the straight-line depreciation method, based on an estimated salvage value of $20,000 and estimated life of 11 years. Assuming that the accountant makes all of the necessary journal entries, what was the amount of gain or loss on the sale. Hint: don’t forget to consider the additional 6 months of depreciation expense before calculating the gain or loss.
a. Loss of $27,500 b. Gain of $12,500 c. Gain of $15,000
9. [$ Value LIFO.] The Green Co. uses the dollar-value LIFO method. At the end of 2005, the base year, the current cost of the ending inventory was $60,000. At the end of 2006, the current cost of the ending inventory was $72,000 and the price index was 1.10. What should be the cost of inventory on the 12/31/06 balance sheet ?
a.. $60,000 b. $65,455 c. $66,000 d. $72,000 e. none of the above
10. [LIFO] The Brown Co. has beginning inventory of 11 units at $10 each. A purchase was made early in the year of 8 units at $8, and later in the year of 7 units at $7. At the end of the year, there were 12 units on hand. What is the amount of ending inventory, if the company uses the LIFO method?
a. $89 b. $116 c. $118 d. $120
Explanation / Answer
5. 65,000
6. 16,000
7. option B is correct
8. gain of $12,500
9. 72,000
10. $116
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.