Question : 71.Refer to the information above. Assuming that Anderson uses the : 1237682

 

 

71.Refer to the information above. Assuming that Anderson uses the LIFO cost flow assumption, it should record this inventory shrinkage by:   

A. Debiting Cost of Goods Sold $7,000.

 

B. Crediting Cost of Goods Sold $7,500.

 

C. Debiting Cost of Goods Sold $7,500.

 

D. Crediting Cost of Goods Sold $7,000.

10 × $700 = $7,000

 

 

 

72.Refer to the information above. Assuming that Anderson uses the FIFO cost flow assumption, it should record this inventory shrinkage by:   

A. Crediting Cost of Goods Sold $7,500.

 

B. Debiting Cost of Goods Sold $7,000.

 

C. Crediting Cost of Goods Sold $7,000.

 

D. Debiting Cost of Goods Sold $7,500.

10 × $750 = $7,500

 

 

 

73.Refer to the information above. Under the FIFO cost flow assumption, the cost of these items to be included in inventory in the company’s year-end balance sheet is:   

A. $36,000.

 

B. $36,500.

 

C. $42,000.

 

D. $37,500.

(20 × $750) + (30 × $700) = $36,000

 

 

 

74.Refer to the information above. Under the LIFO cost flow assumption, the cost of this item to be included as inventory in the company’s year-end balance sheet is:   

A. $36,000.

 

B. $42,000.

 

C. $36,500.

 

D. $37,500.

(30 × $750) + (20 × $700) = $36,500

 

 

 

At the end of last year, Games-2-Use had merchandise costing $140,000 in inventory. During January of the current year, the company purchased merchandise costing $102,000, and sold merchandise that it had purchased at a total cost of $84,000. Games-2-Use uses a perpetual inventory system.

 

75.Refer to the information above. The total amount debited to the Inventory account during January was:   

A. $0.

 

B. $84,000.

 

C. $102,000.

 

D. $140,000.

 

 

 

 

76.Refer to the information above. The balance in the Inventory account at January 31 was:   

A. $84,000.

 

B. $140,000.

 

C. $158,000.

 

D. $242,000.

$140,000 + $102,000 – $84,000 = $158,000

 

 

 

77.Refer to the information above. The amount of goods transferred from the Inventory account to the Cost of Goods Sold account during January was:   

A. $0.

 

B. $84,000.

 

C. $102,000.

 

D. $56,000.

 

 

 

 

Castle TV, Inc. purchased 1,000 monitors on January 5 at a per-unit cost of $185, and another 1,000 units on January 31 at a per-unit cost of $230. In the period from February 1 through year-end, the company sold 1,800 units of this product. At year-end, 200 units remained in inventory.

 

78.Refer to the information above. Assume that Castle TV, Inc. uses the FIFO flow assumption. The cost of the 200 units in inventory at year-end is:   

A. $41,500.

 

B. $46,000.

 

C. $37,000.

 

D. $83,000.

200 × $230 = $46,000

 

 

 

79.Refer to the information above. Assume that Castle TV, Inc. uses the LIFO flow assumption. The cost of the 200 units in the year-end inventory is:   

A. $37,000.

 

B. $46,000.

 

C. $41,500.

 

D. $83,000.

200 × $185 = $37,000

 

 

 

80.Refer to the information above. Assume that the replacement cost of this monitor at year-end is $220 per unit. Using the FIFO flow assumption and the lower-of-cost-or-market rule, Castle TV should write down the carrying value of this inventory by:   

A. $0.

 

B. $1,000.

 

C. $2,000.

 

D. $3,000.

200 × ($230 – $220) = 200 × $10 = $2,000