1/ Cinnamon Buns Co. (CBC) started 2018 with $53,700 of merchandise on hand. During 2018, $292,000 in merchandise was purchased on account with credit terms of 2/10 n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,100. Merchandise with an invoice amount of $2,100 was returned for credit. Cost of goods sold for the year was $313,000. CBC uses a perpetual inventory system.

Assuming CBC uses the gross method to record purchases, ending inventory would be:

Multiple Choice

• $33,902.

• $24,802.

• $39,700.

• $33,860.

2/ Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

• 42 units at $104
• 72 units at $87
• 173 units at $67

Sales for the year totaled 272 units, leaving 15 units on hand at the end of the year. Ending inventory using the average cost method is: (Do not round unit cost calculation. Round your final answer to the nearest whole dollar amount.)

Multiple Choice

• $1,055.

• $1,161.

• $1,005.

• $1,560.

3/ Udon Inc. adopted dollar-value LIFO (DVL) as of January 1, 2018, when it had an inventory of $716,000. Its inventory as of December 31, 2018, was $869,400 at year-end costs and the cost index was 1.15. What was DVL inventory on December 31, 2018?

Multiple Choice

• $756,000.

• $869,400.

• $762,000.

• $823,400.