Question Details

What is the ending inventory value at cost 


1.	On October 31, a fire destroyed PH Inc.'s entire retail inventory. The inventory on hand as of January 1 totaled $680,000. From January 1 through the time of the fire, the company made purchases of $165,000 and had sales of $360,000. Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed?
a.	$680,000.
b.	$673,000.
c.	$485,000.
d.	$629,000.

2.	On March 15, a fire destroyed Interlock Company's entire retail inventory. The inventory on hand as of January 1 totaled $1,650,000. From January 1 through the time of the fire, the company made purchases of $683,000, incurred freight-in of $78,000, and had sales of $1,210,000. Assuming the rate of gross profit to selling price is 30%, what is the approximate value of the inventory that was destroyed?
a.	$2,048,000.
b.	$1,486,000.
c.	$1,564,000.
d.	$2,411,000.

	3.	Dicer uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $130,000 ($198,000), purchases during the current year at cost (retail) were $685,000 ($1,100,000), freight-in on these purchases totaled $43,000, sales during the current year totaled $1,050,000, and net markups (markdowns) were $24,000 ($36,000). What is the ending inventory value at cost?
a.	$153,164.
b.	$156,165.
c.	$157,412.
d.	$236,000.

 
4.	Boxer Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $65,500 ($99,000), purchases during the current year at cost (retail) were $568,000 ($865,600), freight-in on these purchases totaled $26,500, sales during the current year totaled $811,000, and net markups were $69,000. What is the ending inventory value at cost ?
a.	$222,600.
b.	$174,366.
c.	$142,241.
d.	$152,308.

	5.	Barker Pet supply uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $265,600 ($326,900), purchases during the current year at cost (retail) were $1,068,600 ($1,386,100), freight-in on these purchases totaled $63,900, sales during the current year totaled $1,302,000, and net markups (markdowns) were $2,000 ($96,300). What is the ending inventory value at cost?
a.	$316,700.
b.	$258,111.
c.	$411,000.
d.	$246,667.




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