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Harlequin Co. has used the dollar-value LIFO retail method since it began operations in early 2020 (its base year). Its beginning inventory for 2021 was

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Harlequin Co. has used the dollar-value LIFO retail method since it began operations in early 2020 (its base year). Its beginning inventory for 2021 was $39,000 at cost and $75,000 at retail prices. At the end of 2021, It computed its estimated ending inventory at retail to be $126,000. Assuming its cost- to-retail percentage for 2021 transactions was 60%, what is the inventory balance that Harlequin Co. would report in its 12/312021 balance sheet? Multiple Choice $67,500 $75,000 $125,000 The balance can't be determined with the given information On July 10, 2021. Johnson Corporation signed a purchase commitment to purchase inventory for $370,000 on or before February 15, 2022. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2022, and the inventory was purchased for cash at the contract price. On the purchase date of February 1, the market price of the inventory was $383,000. The market price of the inventory on December 31, 2021, was $345,000. The company uses a perpetual inventory system How much loss on purchase commitment will Johnson recognize in 2021? Multiple Choice $13,000 $25,000 $38.000 None Henderson Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of July was $119,000. The following information for the month of August was available from company records: Purchases Freight-in Sales Sales returns Purchases returns $212,000 4,500 343,000 8,300 3,600 In addition, the controller is aware of $12,000 of inventory that was stolen during August from one of the company's warehouses. Required: 1. Calculate the estimated Inventory at the end of August, assuming a gross profit ratio of 25%. 2. Calculate the estimated inventory at the end of August, assuming a markup on cost of 25%. 1 Estimated ending inventory Estimated ending inventory 2

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