Q1.

Comprehensive

The following information for 2019 is available for Marino Company:

The beginning inventory is $106,000.

Purchases returns of $4,000 were made.

Purchases of $288,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken.

At December 31, purchases of $28,000 were in transit, FOB destination, on terms of 2/10, n/30.

The company made sales of $642,000. The gross selling price per unit is twice the net cost of each unit sold.

Sales allowances of $5,000 were made.

The company uses the LIFO periodic method and the gross method for purchase discounts.

Required:

1. Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations. $fill in the blank 1 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.

Cost of sales from purchases	$fill in the blank 2
Cost of sales from beginning inventory	fill in the blank 3
Total cost of goods sold	$fill in the blank 4

Q2.

eBook

Print Item

Question Content Area

Dollar-Value LIFO

Kwestel Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Kwestels records:

Year	Current Costs	Index
2017	$8,000	100
2018	10,800	120
2019	11,500	130
2020	14,000	145
2021	10,500	125

Required:

Calculate the dollar-value LIFO inventory at the end of each year. Do not round your intermediate calculations. If required, round your final answers to the nearest dollar.

	2018	2019	2020	2021
Ending Inventory at LIFO	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4