1. Question 1 Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:
2. SkisBootsApparelSuppliesSelling price$180,000$140,000$120,000$60,000Cost128,000133,00090,00045,000Replacement cost120,000130,000110,00041,000Sales commission10%10%10%10% In applying the lower of cost and net realizable value rule, the inventory of apparel would be valued at:
3. $108,000.
4. $90,000.
5. $110,000.
6. $99,000.

5 points

Question 2

1. Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:
2. SkisBootsApparelSuppliesSelling price$180,000$140,000$120,000$60,000Cost128,000133,00090,00045,000Replacement cost120,000130,000110,00041,000Sales commission10%10%10%10%
3. In applying the lower of cost and net realizable value rule, the inventory of supplies would be valued at:
4. $45,000.
5. $54,000.
6. $41,000.
7. $60,000.

5 points

Question 3

1. Data related to the inventories of Costco Medical Supply are presented below: Surgical
2. EquipmentSurgical
3. SuppliesRehab
4. EquipmentRehab
5. SuppliesSelling price$260$100$340$165Cost17090250162Costs to sell30152510
6. In applying the lower of cost and net realizable value rule, the inventory of rehab equipment would be valued at:
7. $315.
8. $340.
9. $225.
10. $250.

5 points

Question 4

1. The second step, when using dollar-value LIFO retail method for inventory, is to determine the estimated:
2. Ending inventory at current year retail prices.
3. Cost of goods sold for the current year.
4. Ending inventory at cost.
5. Ending inventory at base year retail prices.

5 points

Question 5

1. Under the LIFO retail method, the denominator in the cost-to-retail percentage includes:
2. Net markups and net markdowns.
3. Neither net markups nor net markdowns.
4. Net markups, but not net markdowns.
5. Net markdowns, but not net markups.

5 points

Question 6

1. Data related to the inventories of Costco Medical Supply are presented below:
2. Surgical
3. EquipmentSurgical
4. SuppliesRehab
5. EquipmentRehab
6. SuppliesSelling price$260$100$340$165Cost17090250162Costs to sell30152510
7. In applying the lower of cost and net realizable value rule, the inventory of surgical equipment would be valued at:
8. $230.
9. $240.
10. $170.
11. $152.

5 points

Question 7

1. Under the retail inventory method:
2. A company measures inventory on its balance sheet by converting retail prices to cost.
3. A company measures inventory on its balance sheet at current selling prices.
4. A company measures inventory on its balance sheet on a LIFO basis.
5. None of these answer choices are correct.

5 points

Question 8

1. Using the dollar-value LIFO retail method for inventory:
2. Is the same as dollar-value LIFO, except that the inventory is measured at retail, rather than at cost.
3. Combines retail LIFO accounting with dollar-value LIFO accounting.
4. Allows companies to report inventory on the balance sheet at retail prices.
5. All of these answer choices are correct.

5 points

Question 9

1. Data related to the inventories of Costco Medical Supply are presented below:
2. Surgical
3. EquipmentSurgical
4. SuppliesRehab
5. EquipmentRehab
6. SuppliesSelling price$260$100$340$165Cost17090250162Costs to sell30152510 In applying the lower of cost and net realizable value rule, the inventory of rehab supplies would be valued at:
7. $165.
8. $152.
9. $162.
10. $155.

5 points

Question 10

1. Under the retail method, the denominator in the cost-to-retail percentage does not include:
2. Purchases.
3. Purchase returns.
4. Abnormal shortages.
5. Freight-in.

5 points

Question 11

1. Under the retail method, in determining the cost-to-retail percentage for the current year:
2. Net markups are included.
3. Net markdowns are excluded.
4. Net sales are included.
5. All of these answer choices are correct.

5 points

Question 12

1. Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:
2. SkisBootsApparelSuppliesSelling price$180,000$140,000$120,000$60,000Cost128,000133,00090,00045,000Replacement cost120,000130,000110,00041,000Sales commission10%10%10%10%
3. In applying the lower of cost and net realizable value rule, the inventory of skis would be valued at:
4. $162,000.
5. $128,000.
6. $120,000.
7. $180,000.

5 points

Question 13

1. The first step, when using dollar-value LIFO retail method for inventory, is to:
2. Determine the estimated ending inventory at current year retail prices.
3. Determine the estimated cost of goods sold for the current year.
4. Determine the cost-to-retail percentage for the current year transactions.
5. Price index adjust the LIFO inventory layers.

5 points

Question 14

1. Inventory is valued at:
2. Net realizable value.
3. Cost.
4. Replacement cost.
5. Lower of cost and net realizable value.

5 points

Question 15

1. Data related to the inventories of Costco Medical Supply are presented below:
2. Surgical
3. EquipmentSurgical
4. SuppliesRehab
5. EquipmentRehab
6. SuppliesSelling price$260$100$340$165Cost17090250162Costs to sell30152510 In applying the lower of cost and net realizable value rule, the inventory of surgical supplies would be valued at:
7. $100.
8. $90.
9. $85.
10. $75.

5 points

Question 16

1. The conventional retail inventory method is based on:
2. Average cost.
3. LIFO cost.
4. Average, lower of cost and net realizable value.
5. LIFO, lower of cost and net realizable value.

5 points

Question 17

1. When computing the cost-to-retail percentage for the average cost retail method, included in the denominator are:
2. Net markups and net markdowns.
3. Neither net markups nor net markdowns.
4. Net markups, but not net markdowns.
5. Net markdowns, but not net markups.

5 points

Question 18

1. Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:
2. SkisBootsApparelSuppliesSelling price$180,000$140,000$120,000$60,000Cost128,000133,00090,00045,000Replacement cost120,000130,000110,00041,000Sales commission10%10%10%10% In applying the lower of cost and net realizable value rule, the inventory of boots would be valued at:
3. $140,000.
4. $133,000.
5. $126,000.
6. $130,000.

5 points

Question 19

1. Under the conventional retail method, the denominator in the cost-to-retail percentage includes:
2. Net markups and net markdowns.
3. Neither net markups nor net markdowns.
4. Net markups, but not net markdowns.
5. Net markdowns, but not net markups.

5 points

Question 20

1. Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows:
2. Selling price$620,000Costs to sell30,000Replacement cost520,000
3. What should be the reported value of Montana's inventory?
4. $600,000.
5. $520,000.
6. $590,000.
7. $620,000.