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

• $591,000.

• $559,000.

• $576,000.

• $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

• $242,240.

• $244,040.

• $141,680.

• $539,760.