7. Inventory records for Herb's Chemicals revealed the following:

March 1, 2016, inventory: 1,000 gallons @ $7.20 = $7,200

Purchases:		Sales:
Mar. 10	600 gals @ $7.25	Mar. 5	400 gals
Mar. 16	800 gals @ $7.30	Mar. 14	700 gals
Mar. 23	600 gals @ $7.35	Mar. 20	500 gals
		Mar. 26	700 gals

Ending inventory assuming LIFO in a periodic inventory system would be:

$5,040.

$5,055.

$5,075.

$5,135.

8. Thompson TV and Appliance reported the following in its 2016 financial statements:

	2016
Sales	$420,000
Cost of goods sold:
Inventory, January 1	82,000
Net purchases	340,000
Goods available for sale	422,000
Inventory, December 31	86,000
Cost of goods sold	336,000
Gross profit	$ 84,000

Thompson's 2016 gross profit ratio is:

25%.

19%.

20%.

None of these is correct.

9.Cinnamon Buns Co. (CBC) started 2016 with $52,000 of merchandise on hand. During 2016, $280,000 in merchandise was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system.

Assuming CBC uses the gross method to record purchases, ending inventory would be:

$6,480.

$15,400.

$15,480.

$21,000.

10. Cinnamon Buns Co. (CBC) started 2016 with $52,000 of merchandise on hand. During 2016, $280,000 in merchandise was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system.

What is cost of goods available for sale, assuming CBC uses the gross method?

$312,480.

$326,000.

$331,480.

$337,000.