Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

R4e Company began business on the first day of 20X1. The following are the Company s purchases of inventory Date Inventory Items Quantity Cost per

image text in transcribed
image text in transcribed
image text in transcribed
R4e Company began business on the first day of 20X1. The following are the Company s purchases of inventory Date Inventory Items Quantity Cost per unit March 17 Item A 100 units Item B 70 units $12 Nov 14 Item 100 units S13 $10 May 19 On October 20, 20X1, 120 units were sold, for $40 each, leaving inventory of 150 units. The tax rate for 20X1 was 25%. The Company has no other operating expenses and uses a periodic inventory system, Required: Please choose the best answer to the following questions based on the above information. Suppose the Company uses LIFO for inventory valuation. What is the balance of the Inventory account on December 31, 20X12 O $1800 O$1500 $1600 $1900 Suppose the Company uses FIFO for Inventory valuation. What is the net Income for 2012 $2445 $3560 $2670 $2520 Suppose the Company uses LIFO for inventory valuation and a perpetual Inventory system What is the gross profit for 20X12 O $3560 $3360 53260 $3460 On April 1, a company purchased two units of Inventory A and B. The cost of unit A was $670, and the cost of unit B was $560. On April 30, the company had not sold the Inventory. The net realizable value of unit A was now $690 while the net realizable value of unit B was $490. The adjustment associated with the lower of cost and net realizable value on April 30 will be 50 50 50 1. Cost of Goods Sold Inventory 2. Inventory Cost of Goods Sold 3. Cost of Goods Sold Inventory 4. Inventory Cost of Goods Sold 50 70 7e 70 70 Multiple Choice O Option 2 o Opeona Option 1 Option Consider the following information pertaining to ABC's Inventory Product Revolvers Spurs Hats Quantity 13 26 Cost $126 23 54 Net Realizable Value $155 18 44 9 At what amount should ABC report its inventory? Multiple Choice O $2.595 O $2,879 O $2.502 . 52722

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: Peter Atrill, Eddie McLaney

10th Edition

1292409185, 9781292409184

More Books

Students also viewed these Accounting questions