1. Pharoah Corp. has annual sales totaling $1218000 and an average gross profit of 20% of cost. What is the dollar amount of the gross profit?

A. $203000

B. $182700

C. $243600

D. $304500

2. Oriole uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $393000 ($597000), purchases during the current year at cost (retail) were $2115000 ($3360000), freight-in on these purchases totaled $132000, sales during the current year totaled $3060000, and net markups (markdowns) were $75000 ($111000). What is the ending inventory value at cost? Hint: Round intermediate calculation to 3 decimal places, e.g. 0.635 and final answer to 0 decimal places.

A. $861000

B. $563955

C. $587535

D. $650415

3. Carla Vista Company sells product 2005WSC for $130 per unit. The cost of one unit of 2005WSC is $127, and the replacement cost is $126. The estimated cost to dispose of a unit is $6, and the normal profit is 40% of selling price. At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-market?

A. $72

B. $127

C. $126

D. $124

4. Crane Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2020, for each of the inventory items above.

	Item D	Item E	Item F	Item G	Item H	Item I
Estimated selling price	$122	$122	$97	$92	$112	$92
Cost	77	82	82	82	51	37
Cost to complete	31	31	26	36	31	31
Selling costs	10	18	10	20	10	20