1/ California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2018. In preparing its insurance claim on the inventory loss, the company developed the following data: Inventory January 1, 2018, $450,000; sales and purchases from January 1, 2018, to May 1, 2018, $1,170,000 and $925,000, respectively. California consistently reports a 35% gross profit. The estimated inventory on May 1, 2018, is:

Multiple Choice

• $579,500.

• $615,900.

• $674,500.

• $614,500.

2/ Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business January 1, 2018, and uses the LIFO retail method to estimate ending inventory.

	Cost			Retail
Beginning inventory	$	82,000		$	119,000
Net purchases		393,250			570,000
Net markups					35,000
Net markdowns					55,000
Net sales					510,000

Estimated ending inventory at cost is: (Do not round intermediate calculations):

Multiple Choice

• $111,168.

• $110,600.

• $118,480.

• None of these answer choices are correct.

3/ Data related to the inventories of Costco Medical Supply are presented below:

	Surgical Equipment				Surgical Supplies				Rehab Equipment				Rehab Supplies
Selling price	$	279			$	121			$	346			$	159
Cost		166				109				250				151
Costs to sell		28				6				27				15

In applying the lower of cost or net realizable value rule, the inventory of surgical equipment would be valued at:

Multiple Choice

• $251.

• $166.

• $176.

• $225.