104. Morgan Manufacturing Company has the
following account balances at year end:
Office
supplies $ 4,000
Raw
materials 27,000
Work-in-process 59,000
Finished
goods 72,000
Prepaid
insurance 6,000
What amount should Morgan report as
inventories in its statement of financial position?
a. $72,000.
b. $76,000.
c. $158,000.
d. $162,000.
105. Lawson Manufacturing Company has the
following account balances at year end:
Office
supplies $ 4,000
Raw
materials 27,000
Work-in-process 59,000
Finished
goods 92,000
Prepaid
insurance 6,000
What amount should Lawson report as
inventories in its statement of financial position?
a. $92,000.
b. $96,000.
c. $178,000.
d. $182,000.
106. Elkins Corporation uses the perpetual
inventory method. On March 1, it purchased $10,000 of inventory, terms 2/10,
n/30. On March 3, Elkins returned goods that cost $1,000. On March 9, Elkins
paid the supplier. On March 9, Elkins should credit
a. purchase discounts
for $200.
b. inventory for $200.
c. purchase discounts
for $180.
d. inventory for $180.
107. Malone Corporation uses the perpetual
inventory method. On March 1, it purchased $30,000 of inventory, terms 2/10,
n/30. On March 3, Malone returned goods that cost $3,000. On March 9, Malone
paid the supplier. On March 9, Malone should credit
a. purchase discounts
for $600.
b. inventory for $600.
c. purchase discounts
for $540.
d. inventory for $540.
108. Bell
Inc. took a physical inventory at the end of the year and determined that
$650,000 of goods were on hand. In addition, Bell, Inc. determined that $50,000
of goods that were in transit that were shipped f.o.b. shipping were actually
received two days after the inventory count and that the company had $75,000 of
goods out on consignment. What amount should Bell report as inventory at the
end of the year?
a. $650,000.
b. $700,000.
c. $725,000.
d. $775,000.
109. Bell
Inc. took a physical inventory at the end of the year and determined that
$475,000 of goods were on hand. In addition, the following items were not
included in the physical count. Bell, Inc. determined that $60,000 of goods
were in transit that were shipped f.o.b. destination (goods were actually
received by the company three days after the inventory count).The company sold
$25,000 worth of inventory f.o.b. destination. What amount should Bell report
as inventory at the end of the year?
a. $475,000.
b. $535,000.
c. $500,000.
d. $560,000.
110. Risers
Inc. reported total assets of $1,200,000 and net income of $135,000 for the
current year. Risers determined that inventory was overstated by $10,000 at the
beginning of the year (this was not corrected). What is the corrected amount
for total assets and net income for the year?
a. $1,200,000 and
$135,000.
b. $1,200,000 and
$145,000.
c. $1,190,000 and
$125,000.
d. $1,210,000 and
$145,000.
111. Risers
Inc. reported total assets of $1,600,000 and net income of $85,000 for the
current year. Risers determined that inventory was understated by $23,000 at
the beginning of the year and $10,000 at the end of the year. What is the
corrected amount for total assets and net income for the year?
a. $1,610,000 and $95,000.
b. $1,590,000 and $98,000.
c. $1,610,000 and $72,000.
d. $1,600,000 and $85,000.
Use the following
information for questions 112 through 114.
Hudson, Inc. is a calendar-year corporation. Its financial statements for the years 2011
and 2010 contained errors as follows:
2011 2010
Ending inventory $3,000
overstated $8,000
overstated
Depreciation expense $2,000 understated $6,000 overstated
112. Assume
that the proper correcting entries were made at December 31, 2010. By how much
will 2011 income before taxes be overstated or understated?
a. $1,000 understated
b. $1,000 overstated
c. $2,000 overstated
d. $5,000 overstated
113. Assume
that no correcting entries were made
at December 31, 2010. Ignoring income
taxes, by how much will retained earnings at December 31, 2011 be
overstated or understated?
a. $1,000 understated
b. $5,000 overstated
c. $5,000 understated
d. $9,000 understated
114. Assume
that no correcting entries were made
at December 31, 2010, or December 31, 2011 and that no additional errors occurred in 2012. Ignoring income taxes, by how much will working capital at December
31, 2012 be overstated or understated?
a. $0
b. $2,000 overstated
c. $2,000 understated
d. $5,000 understated
115. The
following information is available for Naab Company for 2010:
Freight-in $ 30,000
Purchase returns 75,000
Selling expenses 150,000
Ending inventory 260,000
The
cost of goods sold is equal to 400% of selling expenses. What is the cost of goods available for sale?
a. $600,000.
b. $890,000.
c. $815,000.
d. $860,000.
Use
the following information for questions 116 and 117.
Winsor Co. records purchases at net amounts. On
May 5 Winsor purchased merchandise on account, $16,000, terms 2/10, n/30. Winsor
returned $1,200 of the May 5 purchase and received credit on account. At May 31
the balance had not been paid.
116. The
amount to be recorded as a purchase return is
a. $1,080.
b. $1,224.
c. $1,200.
d. $1,176.
117. By how much should the account payable be
adjusted on May 31?
a. $0.
b. $344.
c. $320.
d. $296.
Use
the following information for questions 118 and 119.
The following
information was available from the inventory records of Rich Company for
January:
Units Unit Cost Total
Cost
Balance at January 1 3,000 $9.77 $29,310
Purchases:
Sales:
January 7 (2,500)
January 31 (4,000)
Balance at January 31 1,200
118. Assuming
that Rich does not maintain perpetual
inventory records, what should be the inventory at January 31, using the
weighted-average inventory method, rounded to the nearest dollar?
a. $12,606.
b. $12,284.
c. $12,312.
d. $12,432.
119. Assuming
that Rich maintains perpetual inventory records, what should be the inventory
at January 31, using the moving-average inventory method, rounded to the
nearest dollar?
a. $12,606.
b. $12,284.
c. $12,312.
d. $12,432.
Use
the following information for questions 120 and 121.
Niles
Co. has the following data related to an item of inventory:
Inventory, March 1 100
units @ $4.20
Purchase, March 7 350
units @ $4.40
Purchase, March 16 70 units @ $4.50
Inventory, March 31 130
units
120. The
value assigned to cost of goods sold if Niles
uses FIFO is
a. $579.
b. $552.
c. $1,723.
d. $1,696.
* 121. The
value assigned to ending inventory if Niles
uses LIFO is
a. $579.
b. $552.
c. $546.
d. $585.
122. Emley
Company has been using the average cost method of inventory valuation for 10
years, since it began operations. Its 2010 ending inventory was $40,000, but it
would have been $60,000 if FIFO had been used. Thus, if FIFO had been used, Emley's
income before income taxes would have been
a. $20,000 greater
over the 10-year period.
b. $20,000 less over
the 10-year period.
c. $20,000 greater in
2010.
d. $20,000 less in 2010.
Use
the following information for questions 123 and 124.
Transactions
for the month of June were:
Purchases Sales
June 1 (balance) 800 @ $3.20 June
2 600 @ $5.50
3 2,200 @ 3.10 6 1,600 @
5.50
7 1,200 @ 3.30 9 1,000 @
5.50
15 1,800 @ 3.40 10 400 @
6.00
22 500 @ 3.50 18 1,400 @
6.00
25 200 @
6.00
123. Assuming
that perpetual inventory records are kept in dollars, the ending inventory on a
FIFO basis is
a. $4,110.
b. $4,160.
c. $4,290.
d. $4,470.
124. Assuming
that perpetual inventory records are kept in units only, the ending inventory
on an average-cost basis, rounded to the nearest dollar, is
a. $4,096.
b. $4,238.
c. $4,290.
d. $4,322.
125. Milford Company had 500 units of “Tank” in its
inventory at a cost of $4 each. It purchased, for $2,800, 300 more units of
“Tank”. Milford
then sold 400 units at a selling price of $10 each, resulting in a gross profit
of $1,600. The cost flow assumption used by Johnson
a. is FIFO.
b. is specific
identification.
c. is weighted
average.
d. cannot be
determined from the information given.
126. Nichols
Company had 500 units of “Dink” in its inventory at a cost of $5 each. It
purchased, for $2,400, 300 more units of “Dink”. Nichols then sold 600 units at
a selling price of $10 each, resulting in a gross profit of $2,700. The cost
flow assumption used by Kingman
a. is FIFO.
b. is LIFO.
c. is weighted
average.
d. cannot be
determined from the information given.
127. June
Corp. sells one product and uses a perpetual inventory system. The beginning
inventory consisted of 10 units that cost $20 per unit. During the current
month, the company purchased 60 units at $20 each. Sales during the month
totaled 45 units for $43 each. What is the number of units in the ending
inventory?
a. 10 units.
b. 15 units.
c. 25 units.
d. 70 units.
128. June
Corp. sells one product and uses a perpetual inventory system. The beginning
inventory consisted of 10 units that cost $20 per unit. During the current month,
the company purchased 60 units at $20 each. Sales during the month totaled 45
units for $43 each. What is the cost of goods sold using the FIFO method?
a. $200.
b. $900.
c. $1,200.
d. $1,935.
129. Checkers
uses the periodic inventory system. For the current month, the beginning
inventory consisted of 1,200 units that cost $12 each. During the month, the
company made two purchases: 500 units at $13 each and 2,000 units at $13.50
each. Checkers also sold 2,150 units during the month. Using the average cost
method, what is the amount of cost of goods sold for the month?
a. $27,843.
b. $28,950.
c. $26,975.
d. $27,950.
130. Chess
Top uses the periodic inventory system. For the current month, the beginning
inventory consisted of 200 units that cost $65 each. During the month, the
company made two purchases: 300 units at $68 each and 150 units at $70 each.
Chess Top also sold 500 units during the month. Using the average cost method,
what is the amount of ending inventory?
a. $10,500.
b. $33,770.
c. $33,400.
d. $10,131.
131. Checkers uses the periodic inventory
system. For the current month, the beginning inventory consisted of 1,200 units
that cost $12 each. During the month, the company made two purchases: 500 units
at $13 each and 2,000 units at $13.50 each. Checkers also sold 2,150 units
during the month. Using the FIFO method, what is the ending inventory?
a. $20,073.
b. $18,600.
c. $20,925.
d. $18,950.
132. Chess
Top uses the periodic inventory system. For the current month, the beginning
inventory consisted of 200 units that cost $65 each. During the month, the
company made two purchases: 300 units at $68 each and 150 units at $70 each.
Chess Top also sold 500 units during the month. Using the FIFO method, what is
the amount of cost of goods sold for the month?
a. $33,770.
b. $32,500.
c. $34,150.
d. $33,400.
*133. Checkers
uses the periodic inventory system. For the current month, the beginning
inventory consisted of 1,200 units that cost $12 each. During the month, the
company made two purchases: 500 units at $13 each and 2,000 units at $13.50
each. Checkers also sold 2,150 units during the month. Using the LIFO method,
what is the ending inventory?
a. $20,073.
b. $18,600.
c. $20,925.
d. $18,950.
Use
the following information for questions 134 and 135.
Transactions
for the month of June were:
Purchases Sales
June 1 (balance) 800 @ $3.20 June
2 600 @ $5.50
3 2,200 @ 3.10 6 1,600 @
5.50
7 1,200 @ 3.30 9 1,000 @
5.50
15 1,800 @ 3.40 10 400 @
6.00
22 500 @ 3.50 18 1,400 @
6.00
25 200 @
6.00
134. Assuming that perpetual inventory records
are kept in units only, the ending inventory on a LIFO basis is
a. $4,110.
b. $4,160.
c. $4,290.
d. $4,470.
135. Assuming that perpetual inventory records
are kept in dollars, the ending inventory on a LIFO basis is
a. $4,110.
b. $4,160.
c. $4,290.
d. $4,470.
*136. Chess
Top uses the periodic inventory system. For the current month, the beginning
inventory consisted of 200 units that cost $65 each. During the month, the
company made two purchases: 300 units at $68 each and 150 units at $70 each.
Chess Top also sold 500 units during the month. Using the LIFO method, what is
the amount of cost of goods sold for the month?
a. $33,770.
b. $32,500.
c. $34,150.
d. $33,400.
* 137. Black Corporation uses the FIFO method for
internal reporting purposes and LIFO for external reporting purposes. The
balance in the LIFO Reserve account at the end of 2010 was $60,000. The balance
in the same account at the end of 2011 is $90,000. Black’s Cost of Goods Sold
account has a balance of $450,000 from sales transactions recorded during the
year. What amount should Black report as Cost of Goods Sold in the 2011 income
statement?
a. $420,000.
b. $450,000.
c. $480,000.
d. $540,000.
* 138. White Corporation uses the FIFO method for
internal reporting purposes and LIFO for external reporting purposes. The
balance in the LIFO Reserve account at the end of 2010 was $80,000. The balance
in the same account at the end of 2011 is $120,000. White’s Cost of Goods Sold
account has a balance of $600,000 from sales transactions recorded during the
year. What amount should White report as Cost of Goods Sold in the 2011 income
statement?
a. $560,000.
b. $600,000.
c. $640,000.
d. $720,000.
*139. Milford Company had 400 units of “Tank” in its
inventory at a cost of $4 each. It purchased 600 more units of “Tank” at a cost
of $6 each. Milford
then sold 700 units at a selling price of $10 each. The LIFO liquidation
overstated normal gross profit by
a. $ -0-
b. $200.
c. $400.
d. $600.
*140. Nichols Company had 400 units of “Dink” in its
inventory at a cost of $6 each. It purchased 600 more units of “Dink” at a cost
of $9 each. Nichols then sold 700 units at a selling price of $15 each. The
LIFO liquidation overstated normal gross profit by
a. $ -0-
b. $300.
c. $600.
d. $900.
Use the following information for 141 and 142
RF
Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO.
During the year, purchases were $600,000 and sales were $1,000,000. December 31
inventory at year-end prices was $143,360, and the price index was 112.
* 141. What is RF Company’s ending inventory?
a. $100,000.
b. $128,000.
c. $131,360.
d. $143,360.
*142. What is RF
Company’s gross profit?
a. $428,000.
b. $431,360.
c. $443,460.
d. $868,640.
Use the following information for 143 and 144
Hay
Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO.
During the year, purchases were $600,000 and sales were $1,000,000. December 31
inventory at year-end prices was $126,500, and the price index was 110.
*143. What is Hay Company’s ending inventory?
a. $110,000.
b. $115,000.
c. $116,500.
d. $126,500.
* 144. What is Hay Company’s gross profit?
a. $415,000.
b. $416,500.
c. $426,500.
d. $883,500.
Use
the following information for questions 145 through 146.
Gross Corporation adopted the dollar-value LIFO
method of inventory valuation on December 31, 2009. Its inventory at that date
was $220,000 and the relevant price index was 100. Information regarding inventory
for subsequent years is as follows:
Inventory at Current
Date Current Prices Price
Index
December 31, 2010 $256,800 107
December 31, 2011 290,000 125
December 31, 2012 325,000 130
*145. What
is the cost of the ending inventory at December 31, 2010 under dollar-value
LIFO?
a. $240,000.
b. $256,800.
c. $241,400.
d. $235,400.
*146. What
is the cost of the ending inventory at December 31, 2011 under dollar-value
LIFO?
a. $232,000.
b. $231,400.
c. $232,840.
d. $240,000.
*147. What
is the cost of the ending inventory at December 31, 2012 under dollar-value
LIFO?
a. $256,240.
b. $254,800.
c. $250,000.
d. $263,400.
*148. Wise Company adopted the dollar-value LIFO
method on January 1, 2010, at which time its inventory consisted of 6,000 units
of Item A @ $5.00 each and 3,000 units of Item B @ $16.00 each. The inventory
at December 31, 2010 consisted of 12,000 units of Item A and 7,000 units of
Item B. The most recent actual purchases related to these items were as
follows:
Quantity
Items Purchase Date Purchased Cost Per Unit
A 12/7/10 2,000 $ 6.00
A 12/11/10 10,000 5.75
B 12/15/10 7,000 17.00
Using
the double-extension method, what is the price index for 2010 that should be
computed by Wise Company?
a. 108.33%
b. 109.59%
c. 111.05%
d. 220.51%
*149. Web
World began using dollar-value LIFO for costing its inventory last year. The
base year layer consists of $250,000. Assuming the current inventory at end of
year prices equals $345,000 and the index for the current year is 1.10, what is
the ending inventory using dollar-value LIFO?
a. $345,000.
b. $320,000.
c. $313,636.
d. $379,500.
* 150. Willy
World began using dollar-value LIFO for costing its inventory two years ago.
The ending inventory for the past two years in end-of-year dollars was $100,000
and $150,000 and the year-end price indices were 1.0 and 1.2, respectively.
Assuming the current inventory at end of year prices equals $215,000 and the
index for the current year is 1.25, what is the ending inventory using
dollar-value LIFO?
a. $177,500.
b. $186,400.
c. $190,000.
d. $188,750.
*151. Opera Corp. uses the dollar-value LIFO
method of computing its inventory cost. Data for the past four years is as
follows:
Year
ended Inventory at Price
December
31. End-of-year
Prices Index
2010 $
65,000 1.00
2011 126,000 1.05
2012 135,000 1.10
What
is the 2010 inventory balance using dollar-value LIFO?
a. $65,000.
b. $61,904.
c. $122,727.
d. $135,000.
* 152. Opera
Corp. uses dollar-value LIFO method of computing its inventory cost. Data for
the past four years is as follows:
Year
ended Inventory at Price
December
31. End-of-year
Prices Index
2010 $ 65,000 1.00
2011 126,000 1.05
2012 135,000 1.10
What
is the 2011 inventory balance using dollar-value LIFO?
a. $126,000.
b. $128,500.
c. $122,750.
d. $125,750.
*153. Opera
Corp. uses dollar-value LIFO method of computing its inventory cost. Data for
the past four years is as follows:
Year
ended Inventory at Price
December
31. End-of-year
Prices Index
2010 $ 65,000 1.00
2011 126,000 1.05
2012 135,000 1.10
What
is the 2012 inventory balance using dollar-value LIFO?
a. $135,000.
b. $128,500.
c. $122,750.
d. $125,750.
Multiple Choice Answers—Computational
Item
|
Ans.
|
Item
|
Ans.
|
Item
|
Ans.
|
Item
|
Ans.
|
Item
|
Ans.
|
Item
|
Ans.
|
Item
|
Ans.
|
104.
|
c
|
112.
|
d
|
*120.
|
d
|
128.
|
b
|
136.
|
c
|
144.
|
b
|
152.
|
c
|
105.
|
c
|
113.
|
a
|
*121.
|
b
|
129.
|
a
|
137.
|
c
|
145.
|
c
|
153.
|
d
|
106.
|
d
|
114.
|
a
|
*122.
|
a
|
130.
|
d
|
138.
|
c
|
146.
|
c
|
||
107.
|
d
|
115.
|
d
|
123.
|
d
|
131.
|
c
|
139.
|
b
|
147.
|
a
|
||
108.
|
d
|
116.
|
d
|
124.
|
b
|
132.
|
d
|
140.
|
b
|
148.
|
b
|
||
109.
|
c
|
117.
|
d
|
125.
|
c
|
133.
|
d
|
141.
|
c
|
149.
|
b
|
||
110.
|
b
|
118.
|
b
|
126.
|
a
|
134.
|
a
|
142.
|
b
|
150.
|
d
|
||
111.
|
c
|
119.
|
d
|
127.
|
c
|
135.
|
c
|
143.
|
c
|
151.
|
a
|
No. Answer Derivation
104. c $27,000
+ $59,000 + $72,000 = $158,000.
105. c $27,000
+ $59,000 + $92,000 = $178,000.
106. d [($10,000
– $1,000) × .02] = $180.
107. d [($30,000
– $3,000) × .02] = $540.
108. d $650,000 + $50,000 + $75,000 =
$775,000.
109. c $475,000
+ $25,000 = $500,000.
110. b $1,200,000
and ($135,000 + $10,000) = $145,000.
111. c ($1,600,000
+ $10,000) and ($85,000 – $23,000 + $10,000) = $72,000.
112. d $3,000 + $2,000 = $5,000.
113. a $6,000
– ($3,000 + $2,000) = $1,000.
114. a The
effect of the errors in ending inventories reverse themselves in the following
year.
115. d $260,000
+ (4 × $150,000) = $860,000.
116. d $1,200
– ($1,200 × .02) = $1,176.
117. d ($16,000
– $1,200) × .02 = $296.
118. b ($29,310
+ $20,600 + $28,917) ÷ (3,000 + 2,000 + 2,700) = $10.237/unit
$10.237
× 1,200 = $12,284.
119. d Avg.
on 1/6 $49,910
÷ 5,000 = $9.982/unit
1/26 $53,872 ÷ 5,200 = $10.36/unit
$10.36
× 1,200 = $12,432.
120. d 100
+ 350 + 70 – 130 = 390 units
(100
× $4.20) + (290 × $4.40) = $1,696.
* 121. b (100
× $4.20) + (30 × $4.40) = $552.
122. a ($60,000
– $40,000) = $20,000.
123. d (500
× $3.5) + (800 × $3.4) = $4,470.
No. Answer Derivation
124. b $21,210
÷ 6,500 units = $3.26
$3.26
× 1,300 = $4,238.
125. c (400
× $10) – $1,600 = $2,400 COGS
[(500
× $4) + $2,800] – $2,400 = $2,400 E.I.
($4,800
÷ 800) × 400 units = $2,400 E.I. under weighted
avg.
*126. a (600
× $10) – $2,700 = $3,300 COGS
[(500
× $5) + $2,400] – $3,300 = $1,600 E.I.
200
× $8 = $1,600 E.I. under FIFO.
127. c 10 + 60 – 45 = 25 units.
*128. b 45
× $20/unit = $900.
129. a [(1,200
× $12) + (500 × $13) + (2,000 × $13.50] ¸ (1,200 + 500 + 2,000) = $12.95;
$12.95 × 2,150 = $27,843.
130. d [(200
× $65) + (300 × $68) + (150 × $70)] ¸ (200 + 300 + 150) = $67.54; $67.54 ×
(650 – 500) = $10,131.
131. c (1,200 + 500 + 2,000) – 2,150 =
1,550; 1,550 × $13.50 = $20,925.
132. d (200
× $65) + [(500 – 200) × $68] = $33,400.
*133. d (1,200 + 500 + 2,000) – 2,150 =
1,550;
(1,200
× $12) + [(1,550 – 1,200) × $13] = $18,950.
134. a Available
(purchases) = 6,500 units
Sales
= 5,200 units
EI
= 6,500 – 5,200 = 1,300 units
(800
× $3.20) + (500 × $3.10) = $4,110.
135. c (200 × $3.2) + (400 × $3.1) +
(400 × $3.4) + (300 × $3.5) = $4,290.
Date Purchase Sold Balance
6/1 (800 @ 3.2) 2,560 (800
@ 3.2) 2,560
6/2 (600
@ 3.2) 1,920 (200 @ 3.2) 640
6/3 (2,200 @ 3.1) 6,820 (200
@ 3.2)
(2,200
@ 3.1) 7,460
6/6 (1,600
@ 3.1) 4,960 (200 @ 3.2)
(600
@ 3.1) 2,500
6/7 (1,200 @ 3.3) 3,960 (200
@ 3.2)
(600
@ 3.1)
(1,200
@ 3.3) 6,460
6/9 (1,000
@ 3.3) 3,300 (200 @ 3.2)
(600
@ 3.1)
(200
@ 3.3) 3,160
6/10 (200
@ 3.3) (200
@ 3.2)
(200
@ 3.1) 1,280 (400 @ 3.1) 1,880
No. Answer Derivation
6/15 (1,800 @ 3.4) 6,120 (200
@ 3.2)
(400
@ 3.1)
(1,800
@ 3.4) 8,000
6/18 (1,400
@ 3.4) 4,760 (200 @ 3.2)
(400
@ 3.1) 3,240
(400
@ 3.4)
6/22 (500 @ 3.5) 1,750 (500
@ 3.5) 4,990
6/25 (200
@ 3.5) 700 (200 @ 3.2)
(400
@ 3.1)
(400
@ 3.4)
(300
@ 3.5) 4,290
*136. c (150
× $70) + (300 × $68) + (50 × $65) = $34,150.
*137. c $450,000
+ ($90,000 – $60,000) = $480,000.
* 138. c $600,000
+ ($120,000 – $80,000) = $640,000.
* 139. b [(700
– 600) × ($6 – $4)] = $200.
*140. b [(700
– 600) × ($9 – $6)] = $300.
* 141. c $143,360
÷ 1.12 = $128,000 – $100,000 = $28,000.
$100,000
+ ($28,000 × 1.12) = $131,360.
*142. b $100,000
+ $600,000 – $131,360 = $568,640 COGS
$1,000,000
– $568,640 = $431,360.
*143. c $126,500
÷ 1.10 = $115,000 – $100,000 = $15,000.
$100,000
+ ($15,000 ÷ 1.10) = $116,500.
*144. b $100,000
+ $600,000 – $116,500 = $583,500 COGS
$1,000,000
– $583,500 = $416,500.
* 145. c $256,800
÷ 1.07 = $240,000
$220,000
+ [(240,000 – $220,000) × 1.07] = $241,400.
*146. c $290,000
÷ 1.25 = $232,000
($220,000
× 1) + ($12,000 × 1.07) = $232,840.
* 147. a $325,000
÷ 1.30 = $250,000
($220,000
× 1) + ($12,000 × 1.07) + ($18,000 × 1.3) = $256,240.
*148. b [(2,000
× $6) + (10,000 × $5.75) + (7,000 × $17)] ÷ [(12,000 × $5) +
(7,000
× $16)] = 1.0959 = 109.59%.
*149. b $345,000
÷ 1.10 = $313,636; $313,636 – $250,000 = $63,636;
$250,000
+ ($63,636 × 1.10) = $320,000.
No. Answer Derivation
* 150. d $215,000
÷ 1.25 = $172,000; $172,000 – ($150,000 ÷ 1.20) = $47,000;
$100,000
+ [($150,000 ÷ 1.20) – $100,000) × 1.2] = $130,000
$130,000
+ ($47,000 × 1.25) = $188,750.
*151. a $65,000
× 1.00 = $65,000.
*152. c $126,000
÷ 1.05 = $120,000; $120,000 – $65,000 = $55,000.
$65,000
+ ($55,000 × 1.05) = $122,750.
*153. d $135,000
÷ 1.10 = $122,727; $122,727 – ($126,000 ÷ 1.05) = $2,727;
$126,000
÷ 1.05 = $120,000; $120,000 – $65,000 = $55,000;
$65,000
+ ($55,000 × 1.05) + ($2,727 × 1.10) = $125,750.
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