Sunday, July 28, 2013

Inventory


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:
            January 6                                                           2,000               10.30             20,600
            January 26                                                         2,700               10.71             28,917

      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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