1. Montana Co. has determined its year-end inventory on a FIFO basis to be $586,000. Information pertaining to that inventory is as follows:

Selling price	$620,000
Disposal costs	39,000
Normal profit margin	84,000
Replacement cost	513,000

What should be the carrying value of Montana's inventory?

	$497,000
	$581,000
	$586,000
	$513,000

2. Bond Company adopted the dollar-value LIFO inventory method on January 1, 2013. In applying the LIFO method, Bond uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO:

Ending Inventory
At Current		At Base
Year	Cost	Year Cost	Cost index
1/1/13	$306,500	$306,500	1.00
12/31/13	341,250	325,000	1.05
12/31/14	435,540	357,000	1.22

Under the dollar-value LIFO method the inventory at December 31, 2014, should be

	$364,965.
	$357,000.
	$357,925.
	None of these is correct.

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