6.

Nu Company reported the following pretax data for its first year of operations.

Net sales	2,940
Cost of goods available for sale	2,320
Operating expenses	750
Effective tax rate	40%
Ending inventories:
If LIFO is elected	980
If FIFO is elected	1,090

What is Nu's net income if it elects LIFO?

$576.$960.$850.$510.

7.

Nueva Company reported the following pretax data for its first year of operations.

Net sales	7,360
Cost of goods available for sale	5,700
Operating expenses	1,678
Effective tax rate	35%
Ending inventories:
If LIFO is elected	638
If FIFO is elected	813

What is Nueva's net income if it elects FIFO?(Round your intermediate and final answer to the nearest whole dollar amount.)

$403. $795. $620. $517.

11.

On January 1, 2016, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $117,000. The 2016 ending inventory, valued at year-end costs, was $146,080. The relative cost index for this inventory in 2016 was 1.10. Assume that Badger's 2017 ending inventory, valued at year-end costs, was $156,600 and that the relative cost index for this inventory in 2016 was 1.16.

Suppose that Badger's 2018 ending inventory, valued at year-end costs, was $162,000 and that the relative cost index for this inventory in 2018 was 1.20. What inventory balance would Badger report on its 12/31/18 balance sheet?

$135,000 $136,932 $162,000

None of these answer choices is correct.

16.

Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

	Skis	Boots	Apparel	Supplies
Selling price	$163,000	$142,000	$114,000	$67,000
Cost	142,000	145,000	79,800	46,900
Replacement cost	114,000	128,000	99,800	42,900
Sales commission	10%	10%	10%	10%

In applying the lower of cost and net realizable value rule, the inventory of boots would be valued at:

$145,000. $127,800. $92,300. $128,000.

18.

Fad City sells novel clothes that are subject to a great deal of price volatility. A recent item that cost $21.20 was marked up $12.80, marked down for a sale by $5.80 and then had a markdown cancellation of $3.20. The latest selling price is:

$37.20. $27.00. $34.50. $31.40.

19.

Data below for the year ended December 31, 2016, relates to Houdini Inc. Houdini started business January 1, 2016, and uses the LIFO retail method to estimate ending inventory.

	Cost	Retail
Beginning inventory	$92,000	$123,000
Net purchases	424,210	610,000
Net markups		39,000
Net markdown		59,000
Net sales		546,000

Estimated ending inventory at cost is(Do not round intermediate calculations):

$123,636. $113,839. $127,330.

None of these answer choices are correct.

21.

Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for the most recent quarter is shown below:

	Cost	Retail
Beginning inventory	$45,000	$62,000
Net purchases	165,000	219,000
Net markups		19,000
Net markdowns		40,000
Net sales		230,000

To the nearest thousand, estimated ending inventory using the conventional retail method is(Do not round intermediate calculations):

$16,000.

$39,000.

$21,000. $9,000.

22.

Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $31,700, and its ending inventory on December 31 was understated by $15,000. In addition, a purchase of merchandise costing $21,100 was incorrectly recorded as a $2,110 purchase. None of these errors were discovered until the next year. As a result, Poppy's cost of goods sold for this year was:

Overstated by $35,690. Understated by $50,690. Overstated by $2,290. Understated by $35,690.

PLEASE SHOW WORK.

THANKS IN ADVANCE!