10. Comfort Clothing had the following financial da ta for the year ended December 31. Cost of Goods Sold$ 256,000 Beginning Merchandise Inventory$58,000 Ending Merchandise Inventory $107.200 What is the inventory turnover for Comfort Clothing (rounded to one decimal place)y? A. B. C. D. 0.7 times per year 1.6 times per year 2.4 times per year 3.1 times per year 3. After the sale on June 14, what is Red Rover's cost of the merchandise inventory on hand, assuming that Red Rover uses LIFO? (Reference Question 3 information.) A. $510 B. $578 C. $900 D $2,400 6. Suppose Red Rover uses the weighted-average method and the perpetual inventory system. Use the Red Rover data from Question 3 to compute the weighted-average unit cost of the company's inventory on hand on June 8. Round unit cost to the nearest cent. A. $16.11 B. $16.50 C. $18.15 D. $19.00 7. Which inventory costing method results in the lowest ending inventory during a period of rising merchandise inventory cost? A. Weighted-average B. Specific identification C. First-in, first-out (FIFO) D. Last-in, first-out (LIFO) 8. Some companies account for purchases of equipment less than $500 as expenses instead of as assets. This policy is most closely linked to which accounting principle? A. Conservatism B. Lower-of-cost-or-market C. Materiality concept D. Consistency principle 9. On December 31, 20x8, Jones Company understated ending inventory by $52,000. How does this error affect Cost of Goods Sold and Net Income for 20X8? A. Overstates Cost of Goods Sold and understates Net Income B. Overstates both Cost of Goods Sold and Net Income C. Understates Cost of Goods Sold and overstates Net Income D. Leaves both Cost of Goods Sold and Net Income correct because the errors cancel each other 10. Comfort Clothing had the following financial da ta for the year ended December 31. Cost of Goods Sold$ 256,000 Beginning Merchandise Inventory$58,000 Ending Merchandise Inventory $107.200 What is the inventory turnover for Comfort Clothing (rounded to one decimal place)y? A. B. C. D. 0.7 times per year 1.6 times per year 2.4 times per year 3.1 times per year 3. After the sale on June 14, what is Red Rover's cost of the merchandise inventory on hand, assuming that Red Rover uses LIFO? (Reference Question 3 information.) A. $510 B. $578 C. $900 D $2,400 6. Suppose Red Rover uses the weighted-average method and the perpetual inventory system. Use the Red Rover data from Question 3 to compute the weighted-average unit cost of the company's inventory on hand on June 8. Round unit cost to the nearest cent. A. $16.11 B. $16.50 C. $18.15 D. $19.00 7. Which inventory costing method results in the lowest ending inventory during a period of rising merchandise inventory cost? A. Weighted-average B. Specific identification C. First-in, first-out (FIFO) D. Last-in, first-out (LIFO) 8. Some companies account for purchases of equipment less than $500 as expenses instead of as assets. This policy is most closely linked to which accounting principle? A. Conservatism B. Lower-of-cost-or-market C. Materiality concept D. Consistency principle 9. On December 31, 20x8, Jones Company understated ending inventory by $52,000. How does this error affect Cost of Goods Sold and Net Income for 20X8? A. Overstates Cost of Goods Sold and understates Net Income B. Overstates both Cost of Goods Sold and Net Income C. Understates Cost of Goods Sold and overstates Net Income D. Leaves both Cost of Goods Sold and Net Income correct because the errors cancel each other