Question
Afzal, Yasmin & Sons has calculated its year-end inventory on a FIFO basis as $644,000. Plus the following information: Selling price $ 610,000 Costs to
Afzal, Yasmin & Sons has calculated its year-end inventory on a FIFO basis as $644,000. Plus the following information:
| Selling price | $ | 610,000 | |
| Costs to sell | 34,000 | ||
| Replacement cost | 559,000 | ||
What should be the reported inventory value on the year-end balance sheet?
Multiple Choice
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$591,000.
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$559,000.
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$576,000.
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$610,000
On July 8, the inventory of Mo Puga Enterprises was destroyed by a hurricane. The following information is available:
| Sales, January 1 through July 8 | $ | 692,000 | |
| Inventory, January 1 | 138,000 | ||
| Purchases, January 1 through July 8 | 644,000 | ||
| Gross profit ratio | 22 | % | |
What is the estimated inventory on July 8 immediately prior to the hurricane?
Multiple Choice
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$242,240.
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$244,040.
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$141,680.
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$539,760.
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The Internal Auditing Pocket Guide
Authors: J. P. Russell
1st Edition
0873895606, 978-0873895606
