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Tundra Co. uses the periodic inventory method. The company's December 31, 2020 inventory is understated by $2,000. The ending inventory at 2019 was correctly stated.
Tundra Co. uses the periodic inventory method. The company's December 31, 2020 inventory is understated by $2,000. The ending inventory at 2019 was correctly stated. The amounts in the December 31, 2020 financial statements are: Cost of Goods Sold Net Income O Understated Overstated O Overstated Understated o Understated Understated O Overstated Overstated Tundra Co. uses the periodic inventory method. The company's December 31, 2020 inventory is understated by $2,000. The ending inventory at 2021 was correctly stated. The amounts in the December 31, 2021 financial statements are: Cost of Goods Sold Net Income O Understated Overstated O Overstated Understated o Understated Understated O Overstated Overstated A company conducts its lower of cost or market (LCM) test on an individual item basis. Given the following information, what is the appropriate adjustment to inventory? Inventory Item Price Current Sales Current Cost to Replace $100 $50 Historical Cost $60 ABC GHI $65 $150 $200 $450 $80 $140 XYZ $125 $250 Total $270 O($240) write down 0 ($10) write down O $0 (no adjustment is necessary) O $20 write up O $200 write up A company historically has set sales prices so that is recognizes a gross profit rate of 45%. Given the following information, what is the estimate of cost of inventory on hand? January 1, Beginning Inventory $5,000 Cost of Goods Purchased $360,000 Sales $510,000 Sales Returns $10,000 O $84,500 O $90,000 O $115,000 O $135,500 O $140,000
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