1- Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers:

Date	Transaction	Number of Units	Cost per Unit
1/1	Beginning Inventory	170	$870
5/5	Purchase	270	$970
8/10	Purchase	370	$1,070
10/15	Purchase	235	$1,120

During the year, Lauer sold 925 laptop computers. What was cost of goods sold using the FIFO cost flow assumption?

A- $964,500

B- $946,156

C- $942,500

D- $934,500

2- During the audit of Montane Company's 2014 financial statements, the auditors discovered that the 2014 ending inventory had been overstated by $9,600 and that the 2014 beginning inventory was overstated by $5,800. Before the effect of these errors, 2014 pretax income had been computed as $104,000. What should be reported as the correct 2014 pretax income?

A- $119,400.

B- $109,800.

C- $100,200.

D- $88,600.

3- On December 31, 2014, Cruise Company has 13,000 units of an inventory item, which cost $43 per unit when purchased on June 15, 2014. The selling price was $76 per unit. On December 30, 2014, the replacement cost was $41 per unit. At what amount should the 13,000 units of inventory be reported at on the December 31, 2014 balance sheet?

A- $559,000.

B- $988,000.

C- $455,000.

D- $533,000.

4- What is the net adjustment to net income with respect to the determination of cash flows from operating activities when inventory increases $123,000 and accounts payable increases $31,500?

A- A decrease of $91,500.

B- A decrease of $154,500.

C- An increase of $154,500.

D- An increase of $91,500.

5- Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers:

Date	Transaction	Number of Units	Cost per Unit
1/1	Beginning Inventory	250	$950
5/5	Purchase	350	$1,050
8/10	Purchase	450	$1,150
10/15	Purchase	275	$1,200

During the year, Lauer sold 1,125 laptop computers. What was ending inventory using the LIFO cost flow assumption?

A- $239,500.

B- $240,000.

C- $190,000.

D- $210,000.

Carrie Company sold merchandise with an invoice price of $1,000 to Underwood, Inc., with terms of 2/10, n/30. Which of the following is the correct entry to record the payment by Underwood Inc., within the 10 days if the company uses the periodic inventory system and the gross method to record purchases?

Cash	980
Sales discount	20
Accounts receivable		1,000

Accounts payable	1,000
Cash		980
Purchases discounts		20

Purchases	980
Cash		980

Accounts payable	1,000
Cash		1,000

7- QV-TV, Inc. provided the following items in its notes to the financial statements for the year-end 2014: Cost of goods sold was $24.00 billion under FIFO costing and the inventory value under FIFO costing was $2.50 billion. The LIFO Reserve for year-end 2013 was $0.80 billion and at year-end 2014 it had increased to $1.00 billion. What is the LIFO inventory value at year-end 2014?

A- $3.50 billion.

B- $2.70 billion.

C- $2.30 billion.

D- $1.50 billion.

8- RJ Corporation has provided the following information about one of its inventory items:

Date	Transaction	Number of Units	Cost per Unit
1/1	Beginning Inventory	420	$3,280
6/6	Purchase	820	$3,660
9/10	Purchase	1,220	$4,060
11/15	Purchase	820	$4,100

During the year, RJ sold 2,990 units.

What was ending inventory using the FIFO cost flow assumption under a periodic inventory system?

A- $1,426,800.

B- $1,305,000.

C- $1,189,000.

D- $951,200.

9- Which of the following is correct when, in the same year, beginning inventory is understated by $1,580 and ending inventory is understated by $840?

A- Net income is understated by $740.

B- Net income is overstated by $2,420.

C- Net income is overstated by $740.

D- Net income is understated by $2,420.

10= hich of the following is correct when, in the same year, beginning inventory is overstated by $1,900 and ending inventory is understated by $760?

A- Net income is overstated by $1,140.

B- Net income is understated by $2,660.

C- Net income is understated by $1,140.

D- Net income is overstated by $2,660.