4. Which of the following costs should not be included in the cost of inventory?

A Handling

B Labeling o

C Shipping to customers

D Processing

9. As of December 31, Year One, a company holds 20,000 items of a variety of inventory items having an average cost of $10. During Year Two, the company buys several hundred thousand more items with an average cost of $12. A physical inventory is taken on December 31, Year Two and the ending inventory has a value of $360,000. If dollarvalue LIFO is being used, what is reported on the balance sheet as of December 31, Year Two ?

A $300,000

B- $330,000

C $320,000

D- $310,000

19. Ace Company is a local fitness center in Richmond. To boost sales, it sells a package to its customers which are made up of two pieces of paper. Paper One is the right to a massage with a retail value of $100. Paper Two is a coupon that can be presented for a $10 cash rebate. One hundred packages are sold for $100 each in Year One. All 100 massages are taken in Year One. The company expects 70 percent of the coupons to be redeemed but not until Year Two. What is the amount of revenue reported for Year One?

A $9,300

B-10,000

C $9,000

D- $9,500

26. On January 1, Year One, Big Company offers to sell a $100,000 bond coming due in exactly 10 years. This bond pays cash interest of 2 percent at the end of each year. A buyer is found who wants to earn 5 percent interest each year. After some negotiation, Big agrees to the 5 percent effective rate. The present value of a single amount of $1 in ten years at 2 percent annual interest is .80 whereas the present value of a single amount of $1 in ten years at 5 percent annual interest is .63. The present value of an annuity of $1 in ten years at 2 percent annual interest is 8.75 whereas the present value of an annuity of $1 in ten years at 5 percent annual interest is 7.70. What is the sales price for this bond ?

A- 97,500

B- 80.500

C-78,400

D-95,400