1. n periods of rising prices, which method results in the lowest taxable income (Hint: use the four llustrations/tables)? a. FIFO b. LIFO c. Weighted Average 2. The Greene Co. started using the dollar-value LIFO method of inventory in 2005, with ending inventory of $100,000. In 2006 the amount of inventory in base year dollars increased by $40,000. In 2007 the amount of inventory in base year dollars decreased by $30,000. Which of the following is true when computing the ending inventory for 2007, a. The ending inventory for 12/31/2007 will consist of layers from 2005, 2006 and 2007. b. The ending inventory for 12/31/2007 will consist of layers from 2005 and 2007 only c. The ending inventory for 12/31/2007 will consist of layers from 2005 and 2006 only. d. The ending inventory for 12/31/2007 will consist of only a 2007 layer 3. (COGSL.he Silva Co. provided the following information. Beginning inventory $12,000; Purchases $100,000; Purchase Returns Goods Sold: $3,000; Ending inventory $10,000; Sales $180,000. Calculate Cost of a $103,000 b. $101,000. $99,000 d. $98,000 4.IGross Profit Method.] The Savalas Co. is estimating the amount of inventory using the gross profit method. The beginning inventory was $40,000, the amount of sales was $120,000 and the amount of purchases during the year was $100,000. A normal gross profit for this company is 60%, what should be the estimated amount of ending inventory? a- $84,000 b. $92,000 .$68,000 d. $56,000 5. [Retail Method.J The following information pertains to the Roberts Co: Cost of net purchases- 570,000, .oat, of beginning inventory $10,000; net purchases at retail-$130,000; beginning inventory at retail $15,000, Sales- $80,000. What is the amount of the ending inventory at retail? (Choose the closest answer). a $145,000 b. $65,000 c. $45,000. d.$20,000 e.$30,000 6. [Retail method.J Ignore Question S. Assume that ending inventory at retail is $40,000 and that the cost to retail ratio is 40%. What is the amount of ending inventory at cost (choose the closest answer). a $16,000 b. $24,000 & $40,000d.$66,667 Apr