22. Host, Inc., stocks a variety of inventory items. The company began to stock item no. 675 in February of the current year and made the following purchases: If Host uses the first-in, first-out method of inventory valuation and 350 units were on hand as of December 31 , the firm's cost of goods sold would amount to: a.b.c.d.$3,575.$3,750.$6,725.$6,900. 23. Oxford Company had a beginning inventory of 700 units that cost $9.00 each. Purchases were made in June (3,600 units) and October (5,800 units) at costs of $9.50 and $9.80, respectively. If Oxford uses LIFO and a physical count revealed 1,100 units on hand, the company's balance sheet would disclose an ending inventory valuation of: a.b.c.d.$10,100.$10,780.$86,560.$87,240. 24. Jackson's inventory cost on the balance sheet was lower when using first-in, first-out than when using lastin, first-out. Assuming no beginning inventory, in which direction did the cost of purchases move during the year? a. Up. b. Down. c. Steady. d. Cannot be determined. 25. Palmer Products purchased a new delivery truck. The truck had a manufacturer's listed retail price of $14,000 and a negotiated purchase price of $13,200. The purchase was subject to terms of 2/10,n/30, but Palmer did not remit payment until 22 days after the purchase. At what amount should Palmer record the truck on its books? a.b.s.d.$12,936.$13,200.$13,720.$14,000. 26. Hanley Manufacturing purchased a new machine on January 1, 20X4, for $47,000 plus $8,000 of freight and installation costs. Hanley uses the double declining method of recording depreciation, and estimates the machine will last 10 years and have a residual value of $5,000. What amount of depreciation will Hanley record in 20X5 ? a.b.c.g.$6,720.$8,800.$7,520.$8,000