Bakers Furniture, Inc. provided the following for the year. Cost of Goods Sold (Cost of sales) $350,000 Beginning Merchandise Inventory 45,000 Ending Merchandise Inventory 22,500 Calculate the company's inventory turnover ratio for the year. (Round your answer to two decimal places.) O A. 31.11 times per year OB. 5.19 times per year O C. 15.56 times per year OD. 10.37 times per year The ending merchandise inventory for the current accounting period is understated by $2,500. What will be the effect of this error? O A. Net Sales Revenue for the current period will be overstated by $2,500. O B. Net Sales Revenue for the current period will be understated by $2,500. OC. The cost of goods sold for the current accounting period will be overstated by $2,500. OD. The cost of goods sold for the current accounting period will be understated by $2,500. A company has the following inventory information and uses the periodic system: May 1 Beginning Inventory 11 units at $1 each May 4 Purchase 8 units at $2 each May 7 16 units Sale The company uses the FIFO method of inventory costing. What is the cost of goods sold and the ending merchandise inventory? O A. COGS $3; Merchandise Inventory $24 OB. COGS $21; Merchandise Inventory $6 OC. COGS $6; Merchandise Inventory $21 OD. COGS $24; Merchandise Inventory $3 A company that uses the perpetual inventory system purchased 1,000 executive chairs for $250 each and 700 basic chairs for $200 each. The company sold 700 executive chairs and 600 basic chairs for a total of $305,000 on account. The company uses the specific - identification method of inventory costing. Which of the following entries correctly records the sale and the cost of goods sold? ... 305,000 295,000 O A. Accounts Receivable Sales Revenue Cost of Goods Sold Merchandise Inventory 305,000 305,000 295,000 295,000 O B. Cost of Goods Sold Sales Revenue Accounts Receivable Merchandise Inventory 305,000 305,000 305,000 305,000 OC. Cost of Goods Sold Sales Revenue Accounts Receivable Merchandise Inventory 295.000 295,000 305,000 OD. Accounts Receivable Sales Revenue Cost of Goods Sold Merchandise Inventory 305,000 295,000 295,000 A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $7,000 and paid $760 for the freight - in. The company sold the whole lot to a supermarket chain for $12,000 on account. The company uses the specific - identification method of inventory costing. Which of the following entries correctly records the cost of goods sold? 7,000 O A. Cost of Goods Sold Merchandise Inventory 7,000 7.760 OB. Cost of Goods Sold Merchandise Inventory 7.760 7,000 O C. Cost of Goods Sold Sales Revenue 7,000 7,760 OD. Merchandise Inventory Cost of Goods Sold 7.760 Delaware Retail, Inc. had the following balances and transactions during 2025. Beginning Inventory 10 units at $71 June 10 Purchased 20 units at $82 December 30 Sold 15 units December 31 Replacement cost $66 The company maintains its records of inventory on a perpetual basis using the last - in, first-out inventory costing method. Calculate the amount of ending Merchandise Inventory at December 31, 2025 using the lower-of-cost-or-market rule. ... O A. $1,980 OB. $1,320 O C. $990 OD. $1,230 Landers, Inc. has 8 units in inventory on December 31. The units were purchased in November for $180 each. The price lists from suppliers indicate the current replacement cost of the item to be $172 each. What is the effect on gross profit if Landers values its ending merchandise inventory using the lower-of-cost-or-market rule? ".. O A. The gross profit would not be affected. OB. The gross profit would increase by $8. OC. The gross profit would decrease by $64. OD. The gross profit would increase by $64