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1/ Cloverdale, Inc., uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations:

	Cost			Retail
Beginning inventory and purchases	$	372,000		$	557,000
Net markups					43,000
Net markdowns					33,000
Net sales					506,000

What amount should be reported as cost of goods sold for the year?

Multiple Choice

• $331,979.

• $331,260.

• $334,180.

• None of these answer choices are correct.

2/ On July 10, 2018, Johnson Corporation signed a purchase commitment to purchase inventory for $204,000 on or before February 15, 2019. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2019, and the inventory was purchased for cash at the contract price. On the purchase date of February 1, the market price of the inventory was $214,000. The market price of the inventory on December 31, 2018, was $182,000. The company uses a perpetual inventory system.

At what amount will Johnson record the inventory purchased on February 1, 2019?

Multiple Choice

• $214,000.

• $192,000.

• $204,000.

• $182,000.

3/ Fad City sells novel clothes that are subject to a great deal of price volatility. A recent item that cost $20.80 was marked up $13.10, marked down for a sale by $6.80 and then had a markdown cancellation of $4.30. The latest selling price is:

Multiple Choice

• $38.20.

• $27.52.

• $27.60.

• $31.40.

4/ Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

	Skis				Boots				Apparel				Supplies
Selling price	$	168,000			$	162,000			$	106,000			$	72,000
Cost		139,000				141,000				74,200				50,400
Replacement cost		132,000				114,000				94,200				46,400
Sales commission		10	%			10	%			10	%			10	%

In applying the lower of cost or net realizable value rule, the inventory of skis would be valued at:

Multiple Choice

• $151,200.

• $132,000.

• $139,000.

• $117,600.

5/ Montana Co. has determined its year-end inventory on a FIFO basis to be $622,000. Information pertaining to that inventory is as follows:

Selling price	$	600,000
Costs to sell		37,000
Replacement cost		540,000

What should be the reported value of Montanas inventory?

Multiple Choice

• $600,000.

• $590,000.

• $540,000.

• $563,000.

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