5. During Jan, 2013, Phillips co. recorded the following information pertaining to its inventory:

	units	unit cost	total cost	Units on hand
Balance on 1/1/13	1000	$1	1000	1000
Purchased on 1/7/13	600	$3	1800	1600
Sold on 1/20/13	900			700
Purchased on 1/27/13	400	$5	2000	1100

- Using the Periodic Weighted Average method, what amount should Phillips report as ending inventory at Jan 31, 2013?

A. $1500

B. $2160

C. $2640

D. $3300

E. $4800

- Using the information from the previous question and Perpertual LIFO method, what amount should Phillip report as ending inventory at Jan 31. 2013?

A. 1300

B. 2100

C. 2700

D 3900

E 4100

#6. In determing the market value of ending inventory, which of the following statements is correct?

A. replacement cost of the inventory is always the lowest possible market value considered.

B. The ceiling price is calculated as the selling price without any adjustments.

C. The floor price is caculated as the ceiling price less the profit margin.

D. the designed market value is the lowest of the ceiling, replacement cost, or net realizable value.

E. the net realizable value is the same as the floor price if the profit margin is greater than 0%.

#14. Flux co. currently reports under US GAAP but is considering how a change to International Financial Reporting Standards (IFRS) would impact the reporting of inventory, currenly reported using LIFO. Which of the following statements regarding the IFRS treatment of Inventory is True?

A. Flux CO. would not report inventory any different under IFRS.

B. Flux Co. would not be allowed to use FIFO to value inventory under IFRS

C. Under IFRS, Flux CO. would use the replacement cost as the designed market value.

D. The use of LCM as the valuation basic would not remain under IFRS.

E. Any write- downs to market value below cost could be reserved under IFRS.