3. In a price-access economy, a significant reduction in company purchases of inventory coupled with steady customer demand can lead to a substantial increase in a company's net income when using the price method. Select one:

A. LIFO

b. FIFO

c. Average cost

d. Specific Identification

4. Which of the following is NOT included as the cost of inventory? Select one:

A. The purchase price of inventory paid by a business to its suppliers.

b. Direct labor costs in the case of manufacturing inventory.

c. Freight cost paid by the seller for merchandise sold to a customer.

d. Cost of insurance paid by the seller to protect the merchandise purchased from its suppliers.

5. As of December 31, 2020, ABC determined that the cost of its inventory was $95,000. The following assets were included in the aforementioned computation: 1. Goods sold to a customer that are in transit (FOB shipping point): $2,800

2. XYZ company (consignor) assets held on consignment by ABC (consignee). ABC will receive 7% commission when you sell them: $5,000

3. Assets of ABC company (consignor) that are under consignment with WWW company (consignee): $6,000

4. Goods purchased by ABC that are in transit (FOB destination): $4,000

What is the correct cost of ending inventory for ABC? Select one:

A. $83,200

b. $84,000

c. $82,200

10. The following information was obtained from the ABC Company books for 2020:

DATA (in thousands) COST. RETAIL Initial Inventory 140 150 Shopping 55 90 Mark Ups Net 10 "Mark Downs" Net -12 Cost of Available Goods 195. 238 0.82 Sales 85 Final Inventory. 125.36 153.00 Using the average retailer method (retail inventory method) estimate ending inventory. Select one:

to. $119.34

b. $125.36

c. $153.00

d. $264.64

d. $86,000

6. Assuming that the net realizable value of the inventory is less than the cost, and the difference is considered substantial and rare. The inventory adjustment entry under the provision method when using periodic inventory will include Select one:

A. a credit to the inventory account for the amount of the loss.

b. a debit to the allowance account to reduce inventory to market.

c. a debit to a loss account.

d. a debit to the cost of goods sold account for the amount of the loss.

7. Which of the following accounts would be unnecessary in a company that uses a perpetual inventory system? Select one:

ta. cost of goods sold

b. freight for sale

c. returns on purchase

8. ABC, Inc. uses the FIFO method for internal purposes and LIFO for external purposes. The LIFO Reserve account balance at the end of 2022 was $140,000. The balance of the same account at the end of the year 2023 is $210,000. ABC has a cost of goods sold account balance of $1,050,000 from sales recorded under FIFO during 2023 and an ending inventory balance under FIFO of $900,000. What is the correct ending balance of the inventory account that was reported? will report on the 10K by 2023 under LIFO? Select one:

A. $970,000

b. $1,120,000

c. $690,000

d. $830,000

d. sale discount

9. ABC's records reflect sales of $150,000 and a cost of goods available for sale of $135,000. If the gross profit rate on sales is 30%, the estimated cost of ending inventory under the gross profit method will be Select one:

A. $75,000

b. $30,000

c. $15,000

d. $45,000