1/ Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,300, and its ending inventory on December 31 was understated by $15,200. In addition, a purchase of merchandise costing $20,500 was incorrectly recorded as a $2,050 purchase. None of these errors were discovered until the next year. As a result, Poppy's cost of goods sold for this year was:

Multiple Choice

• Overstated by $33,550.

• Understated by $48,750.

• Understated by $33,550.

• Overstated by $3,350.

2/ Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business January 1, 2018, and uses the LIFO retail method to estimate ending inventory.

	Cost			Retail
Beginning inventory	$	82,000		$	113,000
Net purchases		347,410			510,000
Net markups					29,000
Net markdowns					49,000
Net sales					456,000

Estimated ending inventory at retail is:

Multiple Choice

• $147,000.

• $34,000.

• $83,000.

• $189,540.

3/ Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:

	Cost			Retail
Beginning inventory	$	41,000		$	57,000
Net purchases		151,000			213,000
Net markups					30,000
Net markdowns					25,000
Net sales					215,000

To the nearest thousand, estimated ending inventory using the conventional retail method is (Do not round intermediate calculations):

Multiple Choice

• $38,000.

• $32,000.

• $65,000.

• $46,000.

4/ Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

	Skis				Boots				Apparel				Supplies
Selling price	$	178,000			$	152,000			$	112,000			$	68,000
Cost		148,000				140,000				78,400				47,600
Replacement cost		118,000				122,000				116,000				43,600
Sales commission		10	%			10	%			10	%			10	%

In applying the lower of cost or net realizable value rule, the inventory of apparel would be valued at:

Multiple Choice

• $116,000.

• $100,800.

• $78,400.

• $104,880.