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The following information is available for the month of October for ABC Corp. Beginning inventory $200,000 Net Sales $595,000 Net purchases 300.000 Percentage markup on cost 70% A fire destroyed all of ABC Corp.'s inventory on October 31. Using the gross profit method, calculate an estimate of the ending inventory destroyed by the fire. O 500,000 300,000 O 150,000 50.000 Use the below information about Item X of inventory at December 31, 2020 for the next two questions: $50 53 5 Historical cost Selling price Selling costs Replacement cost Normal profit margin Number of Item X Units on hand Existing Recorded LCNRV Reserve 45 17 1,000 $1,000 The LCNRV unit value for the inventory item is: 46 45 41 O 48 O Which of the following is true of normal shortages in retail method? They do not include theft and shrinkage They are deducted from both the cost and retail columns They are deducted from the retail columns. This loss is considered in calculating cost-to-retail ratio The following data concerning the conventional retail inventory method are taken from the financial records of Welch Company. Beginning inventory $ 147,000 $ 210,000 Purchases 672,000 960,000 Freight-in 18,000 Net markups 60,000 42,000 Net markdowns Sales 1,008,000 The ending inventory at cost should be (cost-retail ratio: keep two digits after the decimal point) (do not type $) The following information is available for the month of October for ABC Corp. Beginning inventory $200,000 Net Sales $595,000 Net purchases 300.000 Percentage markup on cost 70% A fire destroyed all of ABC Corp.'s inventory on October 31. Using the gross profit method, calculate an estimate of the ending inventory destroyed by the fire. O 500,000 300,000 O 150,000 50.000 Use the below information about Item X of inventory at December 31, 2020 for the next two questions: $50 53 5 Historical cost Selling price Selling costs Replacement cost Normal profit margin Number of Item X Units on hand Existing Recorded LCNRV Reserve 45 17 1,000 $1,000 The LCNRV unit value for the inventory item is: 46 45 41 O 48 O Which of the following is true of normal shortages in retail method? They do not include theft and shrinkage They are deducted from both the cost and retail columns They are deducted from the retail columns. This loss is considered in calculating cost-to-retail ratio The following data concerning the conventional retail inventory method are taken from the financial records of Welch Company. Beginning inventory $ 147,000 $ 210,000 Purchases 672,000 960,000 Freight-in 18,000 Net markups 60,000 42,000 Net markdowns Sales 1,008,000 The ending inventory at cost should be (cost-retail ratio: keep two digits after the decimal point) (do not type $)
