10) A company inventory account on December 31, 2021 includes the following:

Merchandise shipped to a consignee for sale $20,000

Goods purchased in transit (FOB shipping point) 12,000

Goods received by Teresa's Company for consignment 10,000

Goods Sold and Shipped to Customer (FOB Destination) 7,600

Using the information, determine how much to reduce the inventory on December 31, 2021: a. $32,600 b. $32,000. c. $17,600. d. $19,200

11) Salvador Inc. uses the FIFO method for internal purposes and LIFO for external purposes. The balance of the LIFO Reserve Account at the end of 2020 was $140,000. The balance of the same account at the end of 2021 is $210,000. Salvador Inc. has a balance in the cost of goods sold account of $1,050,000 Product of sales recorded under FIFO during the year, what will be the balance of the cost of sold account that will be reported in the financial statements for year 2021 after LIFO Reserve Adjustment? a. $1,260,000. b. $980,000. c. $1,050,000. d. $1,120,000.