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1/ Cloverdale, Inc., uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations: Cost Retail Beginning inventory

1/ Cloverdale, Inc., uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations:

Cost Retail
Beginning inventory and purchases $ 372,000 $ 557,000
Net markups 43,000
Net markdowns 33,000
Net sales 506,000

What amount should be reported as cost of goods sold for the year?

Multiple Choice

  • $331,979.

  • $331,260.

  • $334,180.

  • None of these answer choices are correct.

2/ On July 10, 2018, Johnson Corporation signed a purchase commitment to purchase inventory for $204,000 on or before February 15, 2019. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2019, and the inventory was purchased for cash at the contract price. On the purchase date of February 1, the market price of the inventory was $214,000. The market price of the inventory on December 31, 2018, was $182,000. The company uses a perpetual inventory system.

At what amount will Johnson record the inventory purchased on February 1, 2019?

Multiple Choice

  • $214,000.

  • $192,000.

  • $204,000.

  • $182,000.

3/ Fad City sells novel clothes that are subject to a great deal of price volatility. A recent item that cost $20.80 was marked up $13.10, marked down for a sale by $6.80 and then had a markdown cancellation of $4.30. The latest selling price is:

Multiple Choice

  • $38.20.

  • $27.52.

  • $27.60.

  • $31.40.

4/ Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

Skis Boots Apparel Supplies
Selling price $ 168,000 $ 162,000 $ 106,000 $ 72,000
Cost 139,000 141,000 74,200 50,400
Replacement cost 132,000 114,000 94,200 46,400
Sales commission 10 % 10 % 10 % 10 %

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

Multiple Choice

  • $151,200.

  • $132,000.

  • $139,000.

  • $117,600.

5/ Montana Co. has determined its year-end inventory on a FIFO basis to be $622,000. Information pertaining to that inventory is as follows:

Selling price $ 600,000
Costs to sell 37,000
Replacement cost 540,000

What should be the reported value of Montanas inventory?

Multiple Choice

  • $600,000.

  • $590,000.

  • $540,000.

  • $563,000.

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