Multiple Choice: The following questions, 1 to 11, are each worth 2 points. Show your work in order to receive partial credit if your answer is incorrect. Calculate the result and circle the correct answer, as needed, or indicate the final solution, as needed. Northwest Fur Co. started 2019 with $94,000 of merchandise inventory on hand. During 2019, $400,000 in merchandise was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $7,500. Merchandise with an invoice amount of $5,000 was returned for credit. Cost of goods sold for the year was $380,000. Northwest uses a perpetual inventory system. 1. Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale? A. $490,500. B. $492,550. C. $496,500. D. $492,500. Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition): 40 units at $100 70 units at $80 170 units at $60 Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. 2. Ending inventory using the average cost method (rounded) is: A. $650. B. $1,000. C. $707. D. $600. 3. Ending inventory using the FIFO method is: A. $650. B. $1,000 C. $707. D. $600. 4. Ending inventory using the LIFO method is: A. $650. B. $1,000 C. $707. D. $600. 5. Bond Company adopted the dollar-value LIFO inventory method on January 1, 2018. In applying the LIFO method, Bond uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO: Year Inventory Value Current Base Cost Year Cost 300,000 300,000 345,600 320,000 350,000 1/1/2018 12/31/2018 12/31/2019 Cost Index 1.00 1.08 1.20 Under the dollar-value LIFO method, the inventory at December 31, 2019, should be A. $357,600. B. $350,000. C. $351,600. D. None of the above. 6. California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2013. In preparing its insurance claim on the inventory loss, the company developed the following data: Inventory January 1, 2013, $300,000; sales and purchases from January 1, 2013, to May 1, 2013, $1,300,000 and $875,000, respectively. California consistently reports a 40% gross profit. The estimated inventory on May 1, 2013, is: A. $302,500. B. $360,000. C. $395,000. D. $455,000. Marilee's Electronics uses a periodic inventory system and the average cost retail method to estimate ending inventory and cost of goods sold. The following data is available from the company records for the month of June 2013: $ Cost 80,000 261,000 Beginning inventory Net purchases Net markups Net markdowns Net sales Retail $ 130,000 500,000 25,000 35,000 520,000 7. The average cost-to-retail percentage is: A. 52.2% B.61.5%. C. 56.8% D. 55%. Page 2 of 9