10 A company uses a periodic inventory system. Beginning Inventory on January 1 was overstated by $32,000, and its ending Inventory on December 31 was understated by $62,000. These errors were not discovered until the next year. As a result, cost of goods sold for the current year was: Skipped Multiple Cholce Understated by $94,000. Overstated by $94,000. Understated by $30,000. Overstated by $30,000. 11 Skipped A company understated its ending Inventory In Year 1 by $25,000 and also understated its ending Inventory In Year 2 by $20,000. Neither error was discovered until Year 3. As a result, of these two errors, gross profit for Year 2 was: Multiple Choice Understated by $45.000. Overstated by $25,000. Overstated by $5,000. Understated by $20,000. 12 A company uses a periodic Inventory system. Beginning Inventory on January 1 was understated by $30,000, and its ending Inventory on December 31 was understated by $17,000. In addition, a purchase of merchandise costing $20,000 was incorrectly recorded as a $2,000 purchase. None of these errors were discovered until the next year. As a result, cost of goods sold for the current year was: Skipped Multiple Cholce Overstated by $31,000. Understated by $31,000. Understated by $48,000. Overstated by $5,000. 13 On March 1, 2024, a company entered into an agreement with the state to obtain the rights to operate a mineral mine for $6 million. The mine is expected to produce 100,000 tons of mineral. As part of the agreement, the company agrees to restore the land to its original condition after mining operations are completed in approximately five years. Management has provided the following possible outflows for the restoration costs that will occur five years from now: (PV of $1. PVA of $1) Skipped Cash Outflow $ 300,000 400,000 500,000 Multiple Choice The company's credit-adjusted risk-free Interest rate is 10%. During 2024, the company extracted 18.000 tons of ore from the mine. How much accretion expense will the company record in Its Income statement for the 2024 calendar year? O $30,326 $27,294 Probability 25% $24,837 50% 25% $20,697 5 Skipped A company using the conventional retall method has the following Information for the current year's operations: Beginning inventory Purchases Net markups Net markdowns Net sales Multiple Choice Management calculates the cost-to-retail percentage as 60%. equal to cost of $600,000 (= $100,000-$500,000) divided by retall of $1,000,000 (= $150,000 $800,000-$85,000-$35,000). Which of the following statements Is correct? O Cost $ 100,000 500,000 O Retail $ 150,000 800,000 85,000 35,000 750,000 The retall amount should be $1,035,000, excluding net markdowns. The retall amount should be $950,000, excluding net markups and net markdowns. The cost-to-retall percentage should be calculated as cost of $600,000 divided by retall of $750,000 (Net sales). The cost and retall amounts should not include beginning Inventory of $100,000 and $150,000, respectively. 6 Skipped A company uses the conventional retail Inventory method to account for Inventory. The following information relates to current year's operat Beginning inventory and purchases Net markups Net markdowns Net sales What amount should be reported as cost of goods sold for the year? Multiple Choice O $273.600 $272,861 Cost $ 313,500 $275,000 None of the other answer choices are correct. Retail $ 540,000 30,000 20,000 480,000 7 Skipped Portman Incorporated uses the conventional retail Inventory method. Expressed in millions of dollars, Information about Portman's 2024 Inventory account is expressed in the table belo Cost $ 55 1,160 Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns 115 255 100 Normal spoilage 60 Net sales 1,940 What is the value of Portman's Inventory at 12/31/2024? Multiple Choice O $150 million $252 million 30 45 $300 million Retail $ 90 2,170 None of the other answer choices are correct. 00 8 Skipped On January 1, 2024, the Coldstone Corporation adopted the dollar-value LIFO retall Inventory method. Beginning Inventory at cost and at retall were $180,000 and $282,000, respectively. Net purchases during the year at cost ar retall were $604,500 and $920,000, respectively. Markups during the year were $10,000. There were no markdowns. Net sales for 2024 were $900,000. The retail price Index at the end of 2024 was 1.04. What is the inventory balance that Coldstone would report In Its 12/31/2024 balance sheet? Multiple Choice O O $312,000 $195.000 $192.168 $202,800 9 A company reported Inventory in the 2023 year-end balance sheet, using the FIFO method, as $154,000. In 2024, the company decided to change its Inventory method to LIFO. If the company had used the LIFO method in 2023, the company estimates that ending Inventory would have been in the range $130,000-$135,000. What adjustment would the company make for this change in Inventory method? Skipped Multiple Choice Debit Retained earnings for $19,000; Credit Cost of goods sold for $19,000 Debit Retained earnings for $24,000; Credit Inventory for $24,000 No adjustment is necessary. Debit Inventory for $21,500; Credit Cost of goods sold for $21,500