17. The balance in Hill Co's inventory account at December 31, 20XI was $700,000 before any necessary year-end adjustments relating to the following: Goods were in transit to Hill from a vendor on December 31, 20X1. The invoice cost was $40,000. The goods were shipped f.o.b. shipping point on December 29, 20X1 and were received on January 4, 20X2. Goods shipped fo.b. destination on December 21, 20X1 from a vendor to Hill were received on January 6, 20X2. The invoice cost was $25,000. On December 29, 20X1, Hill shipped goods f.o.b. destination to a customer w invoice cost of $30,000. The customer received the goods on January 10, 20X2. Hill uses the perpetual method for accounting for inventory. In Hill's December 31, 20XI balance sheet, the inventory should be A) $730,000 B) $740,000. C) $765,000. D) $770,000. Miller, Inc. estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The rate of markup on cost is 25%. The following account balances are available: 18. Inventory, March 1 Purchases Purchase returns Sales during March $220,000 172,000 8,000 300,000 The estimate of the cost of inventory at March 31 would be A) $84,000. B) $144,000. C) $159,000. D) $112,000. E) None of the above. The answer is (put answer of answer sheet) 19. For 20XI, cost of goods available for sale for Vale Corporation was $900,000. The gross profit rate was 20% (of sales). Sales for the year were $800,000, what was the amount of the ending inventory? A) SO. B) $260,000. C) $180,000. D) $160,000. E) None of the above. The answer is (put answer of answer sheet)