Data related to the inventories of Costco Medical Supply are presented below:

	Surgical Equipment	Surgical Supplies	Rehab Equipment	Rehab Supplies
Selling price	$279	$134	$344	$163
Cost	165	126	260	156
Costs to sell	14	24	32	14

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

$126.

$105.

$83.

$110.

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Data related to the inventories of Costco Medical Supply are presented below:

	Surgical Equipment	Surgical Supplies	Rehab Equipment	Rehab Supplies
Selling price	$275	$129	$322	$162
Cost	165	104	289	157
Costs to sell	16	10	34	12

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

$195.

$270.

$288.

$289.

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Data related to the inventories of Costco Medical Supply are presented below:

	Surgical Equipment	Surgical Supplies	Rehab Equipment	Rehab Supplies
Selling price	$264	$140	$348	$151
Cost	168	96	256	150
Costs to sell	26	7	15	8

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

$146.

$143.

$98.

$150.

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

	Skis	Boots	Apparel	Supplies
Selling price	$176,000	$141,000	$108,000	$63,000
Cost	131,000	144,000	75,600	40,950
Replacement cost	119,000	113,000	95,600	36,950
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:

$126,900.

$144,000.

$91,650.

$113,000.

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On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available:

Sales, January 1 through July 8	$684,000
Inventory, January 1	136,000
Purchases, January 1 through July 8	643,000
Gross profit ratio	20%

What is the estimated inventory on July 8 immediately prior to the fire?

$128,600.

$547,200.

$231,800.

$232,600.

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Fad City sells novel clothes that are subject to a great deal of price volatility. A recent item that cost $21.30 was marked up $12.40, marked down for a sale by $5.60 and then had a markdown cancellation of $4.90. The latest selling price is:

$32.16.

$38.60.

$26.90.

$33.00.

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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	$78,000	$116,000
Net purchases	370,240	540,000
Net markups		32,000
Net markdown		52,000
Net sales		483,000

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

$104,344.

$107,398.

$112,840.

None of these answer choices are correct.

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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	$60,000	$77,000
Net purchases	168,000	243,000
Net markups		36,000
Net markdowns		49,000
Net sales		234,000

The conventional cost-to-retail percentage (rounded) is:

84.4%.

64.0%.

74.3%.

71.3%.

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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	$35,000	$70,000
Net purchases	157,000	206,000
Net markups		24,000
Net markdowns		27,000
Net sales		223,000

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

$34,000.

$32,000.

$47,000.

$20,000.

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Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $31,500, and its ending inventory on December 31 was understated by $15,800. In addition, a purchase of merchandise costing $21,300 was incorrectly recorded as a $2,130 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 $34,870.

Understated by $50,670.

Overstated by $3,470.

Understated by $34,870.