1. Eaton Company, which uses the retail LIFO method to determine inventory cost, has provided the following information for 2017:

Cost Retail

Inventory, 1/1/17 $ 282,000 $420,000

Net purchases 1,134,000 1,686,000

Net markups 204,000

Net markdowns 90,000

Net sales 1,590,000

Assuming stable prices (no change in the price index during 2017), what is the cost of Eaton's inventory at December 31, 2017?

a. $384,300.

b. $414,300.

c. $408,000.

d. $396,900.

2. The following information is available for October for Barton Company.

Beginning inventory $350,000

Net purchases 1,050,000

Net sales 2,100,000

Percentage markup on cost 66.67%

A fire destroyed Bartons October 31 inventory, leaving undamaged inventory with a cost of $21,000. Using the gross profit method, the estimated ending inventory destroyed by fire is

a. $119,000.

b. $539,000.

c. $560,000.

d. $700,000.

3. Miles Company, a wholesaler, budgeted the following sales for the indicated months:

June July August

Sales on account $2,700,000 $2,760,000 $2,850,000

Cash sales 270,000 300,000 390,000

Total sales $2,970,000 $3,060,000 $3,240,000

All merchandise is marked up to sell at its invoice cost plus 20%. Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold. The cost of goods sold for the month of June is anticipated to be

a. $2,109,375.

b. $2,320,310.

c. $2,165,625.

d. $2,475,000.

4. Transactions for the month of June were:

Purchases Sales

June 1 (balance) 3,200@ $3.20 June 2 2,400 @ $5.50

3 8,800 @ 3.10 6 6,400 @ 5.50

7 4,800 @ 3.30 9 4,000 @ 5.50

15 7,200 @ 3.40 10 1,600 @ 6.00

22 2,000 @ 3.50 18 5,600 @ 6.00

25 800 @ 6.00

Assuming that perpetual inventory records are kept in units only, the ending inventory on a LIFO basis is

a. $16,440.

b. $16,640.

c. $17,160.

d. $17,880.

5. Transactions for the month of June were:

Purchases Sales

June 1 (balance) 3,200@ $3.20 June 2 2,400 @ $5.50

3 8,800 @ 3.10 6 6,400 @ 5.50

7 4,800 @ 3.30 9 4,000 @ 5.50

15 7,200 @ 3.40 10 1,600 @ 6.00

22 2,000 @ 3.50 18 5,600 @ 6.00

25 800 @ 6.00

Assuming that perpetual inventory records are kept in dollars, the ending inventory on a LIFO basis is

a. $16,440.

b. $16,640.

c. $17,160.

d. $17,880.