ACCOUNTING

A company has the following per unit original costs and replacement costs for its inventory:

Part A: 10 units with a cost of $4, and replacement cost of $3.50

Part B: 46 units with a cost of $8, and replacement cost of $8.50

Part C: 80 units with a cost of $9, and replacement cost of $8.50

Under the lower of cost or market method, the total value of this company’s ending inventory is:

$1,128.11

$1,083.32

$1,083.72

$1,106.00 or $1,083.00, depending upon whether LCM is applied to individual items or the inventory as a whole

$1,128.11 or $1,083.32, depending upon whether LCM is applied to individual items or to the inventory as a whole

Use the following information to estimate the third quarter ending inventory under the gross profit method. This company’s gross profit ratio is 20%.

Third quarter beginning inventory:$55,000

Net sales for third quarter: $75,000

Net purchases for third quarter: $21,000

$15,000.

$16,000.

$16,375.

$151,000.

$1,000.

A company has inventory of 11 units at a cost of $12 each on November 1. On November 5, they purchased 8 units at $15 per unit. On November 12 they purchased 19 units at $16 per unit. On November 15, they sold 30 units. Using the FIFO periodic inventory method, what is the value of the inventory at November 15 after the sale?

$304.

$128.
$154.
	$304.
$608.

A company had the following purchases during the current year:

January:	7 units at $105
February:	12 units at $130
May:	13 units at $130
October:	14 units at $110
November:	13 units at $140

On December 31, there were 23 units remaining in ending inventory. These 23 units consisted of 2 from January, 5 from February, 5 from May, 6 from October, and 5 from November. Using the specific identification method, what is the cost of the ending inventory?

$2,870

$2,720

$1,515

$3,220

$3,985