Question Details

What is Neiderhoff- estimated ending inventory


1.	The following information is available through June 2011 for Kimchee Company:

Beginning inventory		W  50,000,000
Purchases				   150,000,000
Sales				   300,000,000
Markup on sales				    40%

On June 29, a fire completely destroyed Kimchee- inventory. Using the gross profit method, the estimated value of the inventory destroyed is
a.	W100,000,000.
b.	W80,000,000.
c.	W40,000,000.
d.	W20,000,000.

2.	Major Grey Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year:
								       Cost		      Retail		
Beginning inventory		Rs  30,000,000	Rs 50,000,000
Purchases			    145,000,000	    200,000,000
Freight-in			        2,500,000		          
Sales							    205,000,000

What cost to retail ratio should be used to estimate ending inventory?
a.	Rs177,500,000 ÷ Rs250,000,000
b.	Rs177,500,000 ÷ Rs455,000,000
c.	Rs175,000,000 ÷ Rs250,000,000.
d.	Rs175,000,000 ÷ Rs255,000,000

3.	Neiderhoff Inc. uses the retail inventory method to value its merchandise inventory. The following information is available for 2011:
								       Cost		      Retail		
Inventory, 1/1/2011		 € 4,670,000		  € 9,340,000
Purchases			  21,196,000		   45,604,000
Freight-in			    2,712,000			       
Sales							   46,702,000

What is Neiderhoff- estimated ending inventory?
a.	€3,880,000
b.	€3,956,000
c.	€4,287,000
d.	€8,242,000

4.	The following information is available for 2011 for Greenwich Company:
Beginning inventory		  £  5,632,000	
Purchases			    15,998,000	
Sales				    30,000,000	
Markup on Sales			   35%

In May 2011, a flood washed away Greenwich- inventory. Using the gross profit method, the estimated value of the inventory destroyed is:
a.	£7,570,500
b.	£5,599,300
c.	£2,130,000
d.	£1,050,000

5.	Mishu Inc. uses the retail inventory method to value its merchandise inventory. The following information is available for 2011:
								       Cost		         Retail		
Beginning inventory,		 ¥ 101,000,000	 ¥   303,000,000
Purchases			    941,000,000	   2,832,000,000
Freight-in			        3,000,000		             
Sales							   2,935,000,000

What is Mishu- estimated ending inventory?
a.	¥33,990,000
b.	¥66,000,000
c.	¥134,000,000
d.	¥200,000,000




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